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Lean Startup Essentials - March 2012

At STARTup Live Vienna 2012, followed by a call-in with Ash Maurya. New material: Improved why is this relevant, brought into context to the "we need to raise money" point of view. Licensed under CC-BY-NC-SA - feel free to share, embed and re-use in your presentations, please give attribution. Thanks!

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Lean Startup Essentials




            How to save time,
            money & headaches
                      Lean Startup Essentials


                                       Lukas Fittl
                                    lukas@fittl.com


               Slides licensed under CC-BY-NC-SA. Lean Startup is trademarked by Eric Ries.
            Business Model Canvas is created by Alex Osterwalder and licensed under CC-BY-SA.
Lean Startup Essentials



                          About Me

        • Entrepreneur
            (Efficient Cloud, Soup.io)
        • Member of Spark59
            (Lean Canvas, Running Lean)
        • http://founderswiki.com/
Lean Startup Essentials



                          Focus


        • #1 - Presenting to Investors & Press
        • #2 - Make Something People Want
Lean Startup Essentials




         Based on the work by
              these folks




                          & many others
Lean Startup Essentials




             Its gonna    Why am I       WOW!
           be awesome!    doing this?   It works!
               oo            oo           oo
Lean Startup Essentials




                          Why am I
                          doing this?
                             oo
Ad

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Lean Startup Essentials - March 2012

  • 1. Lean Startup Essentials How to save time, money & headaches Lean Startup Essentials Lukas Fittl lukas@fittl.com Slides licensed under CC-BY-NC-SA. Lean Startup is trademarked by Eric Ries. Business Model Canvas is created by Alex Osterwalder and licensed under CC-BY-SA.
  • 2. Lean Startup Essentials About Me • Entrepreneur (Efficient Cloud, Soup.io) • Member of Spark59 (Lean Canvas, Running Lean) • http://founderswiki.com/
  • 3. Lean Startup Essentials Focus • #1 - Presenting to Investors & Press • #2 - Make Something People Want
  • 4. Lean Startup Essentials Based on the work by these folks & many others
  • 5. Lean Startup Essentials Its gonna Why am I WOW! be awesome! doing this? It works! oo oo oo
  • 6. Lean Startup Essentials Why am I doing this? oo
  • 7. Lean Startup Essentials Product/ Market Fit Why am I WOW! doing this? It works! oo oo
  • 8. Lean Startup Essentials How can we hack growth?
  • 9. Lean Startup Essentials How can we reach Product/Market Fit?
  • 10. Lean Startup Essentials Startup: Temporary organization used to search for a repeatable and scalable business model. As defined by Steve Blank.
  • 11. Lean Startup Essentials We need to experiment & learn. Not execute blindly.
  • 12. Lean Startup Essentials 1. ? 2. ? 3. Growth!
  • 13. Lean Startup Essentials 1. ? 2. Run Experiments 3. Growth!
  • 14. Lean Startup Essentials 1. Understand your Business Model 2. Run Experiments 3. Growth!
  • 15. Lean Startup Essentials #1: The Lean Canvas Understand Your Business Model
  • 16. Lean Startup Essentials #1: The Lean Canvas The Business Model Canvas Alex Osterwalder - Business Model Generation http://businessmodelgeneration.com
  • 17. Lean Startup Essentials #1: The Lean Canvas The Lean Canvas BM Canvas adjusted for early-stage Ash Maurya - Running Lean http://book.runningleanhq.com
  • 19. Lean Startup Essentials #1: The Lean Canvas Problem Solution Unique Value Unfair Customer Proposition Advantage Segments Top 3 problems Top 3 features Single, clear, Can’t be easily Target customers compelling copied or bought message that states why you are different and Key Metrics worth buying Channels Key activities you Path to measure customers Cost Structure Revenue Streams Customer Acquisition Costs Revenue Model Distribution Costs Life Time Value Hosting Revenue People, etc. Gross Margin
  • 20. Lean Startup Essentials #1: The Lean Canvas Customer Segments • Persona of your Key Partners Key Activities Value Customer Customer Proposition Relationships Segments prototypical (early) customer Key Channels Resources Cost Structure Revenue Streams • Narrow group of people that buy/use your product • Marketing is easier if you have a narrow customer segment
  • 21. Lean Startup Essentials #1: The Lean Canvas Problem • What is the use case? Problem Key Activities Value Customer Customer Proposition Relationships Segments Key Channels • What are the problems the Resources Cost Structure Revenue Streams customer is trying to solve? • These might be things they’ve already started building in house, because there is an active need
  • 22. Lean Startup Essentials #1: The Lean Canvas Value Proposition • Single, clear, compelling Key Partners Key Activities Value Customer Customer Proposition Relationships Segments message that turns an unaware Key Channels Resources visitor into an interested Cost Structure Revenue Streams prospect • Your elevator pitch • What you put on your landing page
  • 23. Lean Startup Essentials #1: The Lean Canvas Solution • Whats the Minimum viable Key Partners Key Activities Value Customer Customer Proposition Relationships Segments product (MVP) ? Key Channels Resources Cost Structure Revenue Streams • Minimal set of functionality to solve each problem of the customer
  • 24. Lean Startup Essentials #1: The Lean Canvas Channels • How does the customer learn Key Partners Key Activities Value Customer Customer Proposition Relationships Segments about your product? Key Channels Resources Cost Structure Revenue Streams • B2B and B2C vastly different! • SEM, SEO, Friend Invites, Social Media, Direct Sales, Tradeshows, PR, Content Marketing, etc.
  • 25. Lean Startup Essentials #1: The Lean Canvas Revenue Streams • How much is the problem Key Partners Key Activities Value Customer Customer Proposition Relationships Segments worth to the customer? Key Channels Resources Cost Structure Revenue Streams • Not how much it costs you to implement the solution • Avoid Free and Freemium Its just a marketing tactic!
  • 26. Lean Startup Essentials #1: The Lean Canvas This document is alive and easy to update (not like your rusty old business plan)
  • 27. Lean Startup Essentials #2: Run Experiments Run Experiments
  • 28. Lean Startup Essentials #2: Run Experiments Build-Measure-Learn
  • 29. Lean Startup Essentials #2: Run Experiments Launch = First iteration
  • 30. Lean Startup Essentials #2: Run Experiments Speed of iteration beats Quality of iteration
  • 31. Lean Startup Essentials #2: Run Experiments How can you experiment faster?
  • 32. Lean Startup Essentials #2: Run Experiments Instead of “Will it work?” ask “Do customers care?”
  • 33. Lean Startup Essentials #2: Run Experiments Customer Interviews 30 min in-person with your prototypical customer People like talking about their field - explore their worldview.
  • 34. Lean Startup Essentials #2: Run Experiments How to conduct an interview 1. Set context & tell your story 2. Tell your problem hypothesis 3. Listen to their worldview 4. Ask for follow up / references DO NOT sell them your solution
  • 35. Lean Startup Essentials #2: Run Experiments Online Market Tests: Google Adwords Fake Landing Page with “Signup to be notified when we launch” “Can we call you to ask a couple of Qs?”
  • 36. Lean Startup Essentials #2: Run Experiments MVP: Minimum Viable Product
  • 37. Lean Startup Essentials #2: Run Experiments Example: Idealab’s CarsDirect Back in ’98
  • 38. Lean Startup Essentials #2: Run Experiments Example: mjam.at
  • 39. Lean Startup Essentials Ignore at your own risk. Why am I doing this? oo
  • 40. Lean Startup Essentials Thanks! Lukas Fittl lukas@fittl.com Slides licensed under CC-BY-NC-SA. Lean Startup is trademarked by Eric Ries. Business Model Canvas is created by Alex Osterwalder and licensed under CC-BY-SA.

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