It's a new trend of starting a start-up happen all around the world. It's not surprising knowing that the idea is from Silicon Valley. However, since it's new, be skeptical. I prefer to apply it in web startup context only.
Bio• Co-founder of Passed Pawns LLC, a startup consulting firm• Business Advisory of Contemi, an insurance software from Norway• Instructor of Business Admin at Saigon Tech• Instructor of Project Management at FMIT• www.facebook.com/qtheboss
Warning• I am here to learn, not to teach• I do not like good words. I love hear you says “No, you’re wrong.”• I have no credit for Lean Startup• I have no credit for any intelligent work on this slides, including images, terminologies, processes, philosophies …• The context is web startup
So who got the credit for Lean Startup? Eric Ries Steve Blank• Co-founder and CTO of IMVU • Retired serial entrepreneur• Entrepreneur-in-Residence at • Built 8 startups in 21 years Harvard Business school, 2010 including MIPS Computers• Best Young Entrepreneur of Tech, • Now teaching Entrepreneurship at 2007 Berkeley, Stanford, and Columbia• Startup advisory
So what is lean startup• Lean startup is a rigorous process for iterating from plan A to a plan that works.• Speed – Startups that succeed are those that manage to iterate enough times before running out of resources – Eric Ries• Validated Learning – Get out of the building – Steve Blank• Focus – Right Action, Right Time – Bijoy Goswami
Who actually used Lean Startup?• Dropbox (www.dropbox.com)• Peernuts (www.peernuts.com) – Peernuts is a sharing platform for cultural goods. You just have to log in, list your library, connect with your friends and get access to the hundreds of films, books, video games, comics they want to share with you. – Right now, Peernuts is in beta mode, available in French and just for DVDs.• And a lot more: IMVU, Votizen, KISSMetric, Aarkvard, Groupon, Hearsay, Epic Scale, Food on the Table, Pbworks, …
Dropbox - Key Lessons• Public launch in Sep 2008• Ignored mainstream PR• Did not focus on building lots of features• Successfully used survey, split tests, landing page, signup flow optimization, sharing encouragement …• Invested heavily in analytics
Peernuts – Blogging before Coding• Step #1: – A short blog post – 10-question poll – No code AT ALL
Peernuts – Market shrinking• Step #2: – Is your market really big and totally bullish? If yes, you’re missing the point. If it’s big that’s too big. Start shrinking your market! – Started with DVD
Peernuts – Feature Burner• Test #3: – Ask yourself if you have more than 3 features. If yes, you’re too fat. – 3 features: • a movie listing powered by an external movie database • a loan dashboard • a friend system coupled with Facebook connect and a basic mail invitation – No rating system, no wish list, no recommendation, no notification, no privacy setting … NOOOOO!!!
Peernuts – No designer• Step #4: – First product ship objective is to learn, learn, and learn. – Don’t depress if you don’t have a wonderful logo. It looks weird but if you don’t care, it will just be fine! – Remember: you don’t need the perfect product but a working prototype.
Peernuts – Procrastination• Did you postpone product ship for the 3rd time? If yes, stop messing around. Release it!• Learn with your customers > Refine useless aspects of your product
Peernuts - Conclusion• Right now: Peernuts doesn’t work.• But: we have a great feedback on the service we are building• Will we add features? NO – Increase customer performance• Will we start massive communication? NO – Wait until the virality rate > 1• Will we work on our market? YES – We don’t have the correct positioning yet.• Is it okay to not consider any business model for the moment?
How to use Lean Startup?• Lean Canvas• MVP (Minimum Viable Product)• Build – Measure – Learn loop• Customer Development• Key Metrics
Minimum Viable Product (MVP)• MVP is the product with just the necessary features to get money and/or feedback from early adopters.• Do MVPs seem abstract to you?
MVP examples1. “If Apple can launch a smartphone without Find or Cut-and-Paste, what can you cut out of your product requirements?” – Sramana Mitra2. USV-backed foursquare uses Google Docs to collect customer feedback. No code, no maintenance.3. Fliggo sells it before they build it.4. Grockit puts up a notify-me-when-you-release form on steroids.5. Auto e-commerce site uses manualation and flintstoning for their backend.6. Semiconductor company uses 5 people and FPGAs to build a $100M semiconductor product line.7. Consumer company uses fake screenshots to sell their product.8. Allicator uses Facebook ads: “Ditch Digger? Feeling spread thin? Click here to complete a survey and tell us about it.”9. ManyWheels uses Microsoft Visio to build clickable web demos for prospective customers.10. Cloudfire uses a classic customer development problem presentation.
Conclusion• Lean Startup is a method of testing the assumptions and hypothesis of a business idea in an iterative manner while validating your product/market fit before you ship a complete product.• It’s new. So be skeptical.