1.
Hashtag: #leanstack
ASH MAURYA
@ashmaurya
ash@leanstack.com
BEYOND MVP:
SCALING LEAN

2.
All my ideas started out as awesome ideas.

3.
Not all them became awesome products.

4.
Good ideas are rare and hard to find.

5.
So I was ready for the search process.

6.
But what really bothered me was my
cycle time between ideas.

7.
18-24 months between ideas.

8.
Life’s Too Short to Build Something
Nobody Wants.

9.
BACKWARDS

10.
Show me traction

11.
How does this solve my problem?

12.
#1reason why
new products fail

13.
We waste needless time, money, and effort
building the wrong product.

14.
Solution
Awesome
`
?
?
The Innovator Bias

15.
Your business model, NOT your solution,
is THE product.
1st MINDSHIFT

16.
http://RunningLean.co
575+ 5-Star reviews

17.
01 Document your Plan A
META-PRINCIPLES
02 Identify the riskiest parts of your plan
03 Systematically test your plan

18.
Document your
Plan A

19.
Problem
Top 3 problems
Solution
Top 3 features
Unique Value
Proposition
Single, clear,
compelling message
that states why you
are different and
worth paying
attention
Unfair Advantage
Can’t be easily
copied or bought
Customer
Segments
Target customers
Key Metrics
Key activities you
measure
Channels
Path to customers
Cost Structure
Customer Acquisition Costs
Distribution Costs
Hosting
People, etc.
Revenue Streams
Revenue Model
Life Time Value
Revenue
Gross Margin
Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons
Attribution-Share Alike 3.0 Un-ported License.
PRODUCT MARKET

20.
Identify the riskiest parts
of your plan
Document your
Plan A

21.
Systematically test
your plan
Identify the riskiest parts
of your plan
Document your
Plan A

22.
Systematically test
your plan
Identify the riskiest parts
of your plan
Document your
Plan A
Business Model Development Process

23.
CASE-STUDY

24.
WHATis the
riskiest assumption?

25.
ROADSTER

26.
WHY did they use the
Lotus Esprit versus
another car model?

27.
Scale your idea in stages.
2nd MINDSHIFT

28.
Whyanother book?

29.
Identifying what’s riskiest is quite hard.1

30.
Systematically test
your plan
Identify the riskiest parts
of your plan
Document your Plan A

31.
Reporting on your learning is not enough.2

32.
Validated
learning
The Dichotomy of the Progress Story

33.
Validated
learning
The Dichotomy of the Progress Story
Whatever demonstrates
growth

34.
Drowning in a sea of numbers.3

35.
What you wanted
WTF?
The reality

36.
01 Defining Progress
OUTLINE
02 Prioritizing Waste
03 Achieving Breakthrough

37.
Whatdo both investors and
entrepreneurs want?

38.
The hockey-stick curve

39.
TRACTION matters above everything else
Yay!

40.
Traction can be gamed

41.
Traction can be gamed Same data plotted differently

42.
What is TRACTION
exactly?

43.
A business model describes how you
create, deliver, and capture value.
-Saul Kaplan

44.
The hockey-stick curve
Track Customer behavior

45.
Create Value Capture Value Cost (Deliver Value)

46.
Create Value Capture Value Cost (Deliver Value)>1
VALUE EQUATION

47.
Create Value Capture Value Cost (Deliver Value)>1
VALUE EQUATION
>=2
MONETIZATION EQUATION

48.
Create Value Capture Value Cost (Deliver Value)> >=

49.
TRACTION
The rate at which a business model captures
monetizable value from its customers.

50.
Saas
Freemium
Trial
E-commerce
Ad-based
Marketplace
Big Data
User Generated Content
Retail
Media
Community
Membership site
Platform
Open Source
Enterprise
Non-profit
Social
3 business model archetypes

51.
DIRECT MULTI-SIDED MARKETPLACE
$

52.
DIRECT

53.
Unaware visitors Happy customers
Direct models

54.
Unaware visitors Happy customers
Direct models

55.
TRACTION IN A DIRECT MODEL:
The rate at which you create customers.

56.
What customer behaviors lead to traction?

57.
Unaware visitors Happy customers
Direct models
Time spent in store correlated with money spent

58.
MULTI-SIDED

59.
Unaware visitors Happy users
Multi-sided models

60.
Unaware visitors Happy users
Multi-sided models
Derivative asset

61.
Unaware visitors Happy users
Multi-sided models
Happy customers
Derivative asset

62.
Unaware visitors Happy users
Multi-sided models
Happy customers
Derivative asset
Advertisers

63.
TRACTION IN A MULTISIDED MODEL:
Derivative asset to revenue exchange rate

64.
MARKETPLACE
$

65.
Marketplaces

66.
Happy buyer
Happy seller
Marketplaces

67.
Happy buyer
Happy seller
$
Marketplaces
Transaction

68.
Unaware buyers Happy buyer
Unaware sellers Happy seller
$Transaction
Marketplaces

69.
TRACTION IN A MARKETPLACE MODEL:
The rate of transactions.

70.
Waste is any activity that consumes resources
but adds no value.

71.
Taiichi Ohno’s chalk circles.

72.
Waste is everywhere.

73.
RIGHT ACTION, RIGHT TIME
There are only a few key actions that matter.
Focus on those and ignore the rest.

74.
Theory of Constraints:
Every business is a system of
interconnected processes with a
single constraint.

75.
Addressing the weakest link is the
only thing the matters.

76.
Addressing the weakest link is the
only thing the matters.
premature optimization premature optimization

77.
Be wary of local optimization.

78.
You can’t predict the next bottleneck.

79.
Before you can prioritize waste,
you have to be able to see the factory floor.

80.
Unaware visitors Happy customers

81.
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Unaware visitor
Passionate Happy Customer
Pirate Metrics

82.
More Visual

83.
Systems Thinking

84.
Indicates interest
through teaser
page
Ongoing
engagement with
sessions and tool
Interview and
then start trial
Organic Channels
Blog, twitter,
workshops
Ask for referrals
to like-minded
companies
Monthly SaaS
payment
after first 30
days

85.
Exposes the constraint
which prioritizes focus

86.
Strategy:
Qualify leads

87.
Focus on a single key metric.
NEEDS REVISION

88.
Focus on a single key metric,
but always monitor the entire customer factory.
REVISED

89.
One final takeaway…

90.
You can’t brute force a solution…

91.
Starting with a solution is like building a key
without a door.

92.
Love the problem, not your solution.
3rd MINDSHIFT

93.
ASH MAURYA
@ashmaurya
ash@leanstack.com
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