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Hashtag: #leanstartup
ASH MAURYA
@ashmaurya
spark59.com
PracticeTrumpsTheory.com
10 STEPS TO
PRODUCT/MARKET FIT
9/10startups fail
products
66%drastically change their
original plans
Not a better Plan A but a path to a
plan that works before running out of
resources.

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Eric Ries - The Lean Startup - RailsConf 2011
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Keynote address by Eric Ries at RailsConf 2011 in Baltimore on May 17, 2011. Video here: http://www.youtube.com/watch?v=IVBVZGfzkVM

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Product Market Fit - How to know your product is market fit
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Product market fit means developing a product that solves a problem for customers in a sizable market who are willing to pay for the solution. Achieving product market fit is important for startups' survival and growth. To validate market potential, startups should identify their target customer and understand the problem the customer needs solved. Startups can then test minimum viable products, collect customer feedback, and iterate to achieve product market fit first with early adopters and then the early majority of customers by continuously learning from the market. The goal is to "cross the chasm" from the early adopter stage to the early majority stage of the customer adoption curve.

product managementproduct market fitmarketing
A plan that works = Product/Market Fit
What is
Product/Market Fit?
“... customers are buying the product just
as fast as you can make it - or usage is
growing just as fast as you can add
servers ...”
-Marc Andreessen, The Pmarca Guide to startups
“If you have to ask whether you have
Product/Market Fit, the answer is simple:
you don’t.”
-Eric Ries, The Lean Startup

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This document discusses the Value Proposition Canvas methodology for understanding customers' needs and pains. It introduces the speaker, Matina Moreira, and provides an agenda for the presentation. It then gives an example of using the Value Proposition Canvas for a case study about creating a job finding service for senior professionals. Key aspects of the canvas are explained, including creating a customer profile listing pains, gains, and tasks, and mapping these against potential products and services to find the best fit. The speaker explains how she uses the canvas methodology at the beginning of new projects and with clients to build empathy for customers.

Getting to Product/Market Fit can
be done systematically.
01 Problem/Solution Fit
AGENDA
02 Early Traction
03 Product/Market Fit
01 Problem/Solution Fit
AGENDA
02 Early Traction
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AGENDA
02 Early Traction
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01 Document your Plan A.
Reasonably smart people can rationalize
anything but entrepreneurs are
especially gifted at this.
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write that they don’t read

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Business Model versus Business Plan
A single diagram of your business
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
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
Problem
Top 3 problems
Key Metrics
Key activities you
measure
Unique Value
Proposition
Single, clear,
compelling message
that states why you
are different and
worth paying
attention
Unique Value
Proposition
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compelling message
that states why you
are different and
worth paying
attention Channels
Path to customers
Customer
Segments
Target customers
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Customer Acquisition Costs
Distribution Costs
Hosting
People, etc.
Cost Structure
Customer Acquisition Costs
Distribution Costs
Hosting
People, etc.
Cost Structure
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People, etc.
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Revenue Model
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Revenue
Gross Margin
Revenue Streams
Revenue Model
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Revenue
Gross Margin
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
10 steps to product/market fit
Problem Solution
Unfair
Advantage
Key Metrics
http://runlean.ly/why-lean-canvas

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01 Problem/Solution Fit
AGENDA
02 Early Traction
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05 Deliver value before growth.
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ACTIVATION
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REVENUE
REFERRAL
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06 The terrain before Product/Market Fit is riddled
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You don’t need lots of users to learn.
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01 Problem/Solution Fit
AGENDA
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03 Product/Market Fit
01 Problem/Solution Fit
AGENDA
02 Early Traction
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ACQUISITION
ACTIVATION
RETENTION
REVENUE
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How do you make money?
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ignore the rest.
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You cannot step in the
same river twice.
-Heraclitus
Signups
Activation
Paid Conversion
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innovationbusiness modellean startup
Transitioning to-lean-at-infochimps
Transitioning to-lean-at-infochimpsTransitioning to-lean-at-infochimps
Transitioning to-lean-at-infochimps

This document discusses transitioning a company to a lean approach. It describes how the company is dealing with large amounts of raw data from various sources and markets. It discusses hypotheses for new products using foursquare data and social media solutions. It emphasizes the importance of clearly defining problems, solutions, and metrics for experiments before deciding to pivot business strategies or products. It also describes challenges with tracking users that interact with both the company's website and APIs.

10 steps to product/market fit
10 steps to product/market fit
10 steps to product/market fit
10 Breakthrough insights are usually hidden
within failed experiments.

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Vetting ideas
Vetting ideasVetting ideas
Vetting ideas

The document provides guidance on systematically vetting product ideas using a lean startup methodology. It recommends (1) documenting an initial Plan A, (2) identifying the riskiest parts of the business model by stage, and (3) selecting tactics that maximize speed, learning, and focus such as running customer interviews and building minimum viable products to test assumptions. The goal is to learn what works before running out of resources so entrepreneurs don't waste time on ideas that aren't viable.

running leanlean startupcustomer development
Lean Canvas Slideshow
Lean Canvas SlideshowLean Canvas Slideshow
Lean Canvas Slideshow
Aesop's garden presentation
Aesop's garden presentationAesop's garden presentation
Aesop's garden presentation

The document provides an overview of the development process for a digital storytelling tool called Aesop's Garden. It describes conducting problem interviews to identify user needs, building an initial demo, pivoting to focus on coloring book stories as a minimum viable product (MVP), and next steps of building out the MVP website and testing pricing models. Key lessons learned included focusing on the unique value proposition, embracing constraints to find the true MVP, and getting commitments from illustrators to meet deadlines. The goal is to create personalized stories that help strengthen family relationships even when family members live apart.

running leanlean startup
A pivot not grounded in learning is a
disguised “see what sticks” strategy.
10 steps to product/market fit
“There is no such thing as a failed
experiment- only unexpected outcomes. ”
- Buckminster Fuller
THANKS!
Available now in bookstores
Get more content like this:
http://runlean.ly/InnovationAccounting
Ash Maurya | Author, Running Lean | Founder, Spark59 | @ashmaurya
Life is too short to build something nobody wants

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How We Build Features
How We Build FeaturesHow We Build Features
How We Build Features

The document describes Ash Maurya's USERcycle methodology for building product features. The methodology focuses on continuous learning and feedback by breaking development into stages like mockups, demos, partial rollouts, and validation. This allows validating assumptions at each stage and continuously learning to refine solutions that meet customer needs.

kanbanlean startup
Ash sxsw
Ash sxswAsh sxsw
Ash sxsw

The document describes Ash Maurya's USERcycle methodology for building product features. The methodology focuses on continuous learning and short feedback cycles. It involves developing mockups, demos, and partial rollouts of features to collect qualitative and quantitative customer feedback at each stage before fully releasing features. This helps validate problems and solutions with customers and ensures features are meeting goals like activation rates.

Running Lean - Dallas
Running Lean - DallasRunning Lean - Dallas
Running Lean - Dallas

The document discusses the concept of "Running Lean", which is a systematic process for iterating a startup's web application from the initial "Plan A" to a plan that works. It involves using techniques from Customer Development, Lean Startup, and Bootstrapping. The key aspects are validating problems and solutions with customers, achieving product/market fit through iterative releases, and optimizing for scale once fit is achieved. Progress is measured through validated learning loops involving hypotheses, experiments, qualitative/quantitative validation, dashboards, and communication of learnings. The overall goal is to iterate quickly from the initial plan to one that works through a continuous process of customer feedback and validation.

running leanlean startupcustomer development

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10 steps to product/market fit