SlideShare a Scribd company logo
F-Day!
Do not open the kit until I say GO!
Build the tallest freestanding structure.
The entire marshmallow must be on the very
top.
You’ll have 18 minutes.
Use as much or as little of the kit contents as
you want, but nothing else!
Coder
Digital agency
5 startups
Leancamp
“I wish I knew that sooner.”
Learning
Goals
Not living
your dream?
We will fail.
Our job is to bring
ourselves the bad
news sooner.
Build
Learn
Measure
Principles,
not process.
Iteration
Do Less
Improve the big picture
Learn, then confirm
Tangible next steps
Principles
Today
10:30 Lean Flow
11:30 Doing Less
1:30 Lunch
2:30 Prioritisation
3:30 Stakeholder Analysis
4:30 Learning Goals
5:30 Pub
Feedback!
Do less.
Don’t work hard to
mask your inefficiency.
Not enough time?
Not enough money?
Grow with efficiency.
3 ways to
Do Less.
Limiting work-in-progress.
Letting go.
Being picky about your
first customers.
Limit your
work in progress.
Good for vision,
inventing and improving.
Bad for getting stuck on
specifics that don’t work.
Tenacity
WIP yourself.
Early traction.
Earlyvangelists
Have the problem
Know they have the problem!
Have budget to solve it.
Have looked for a solution.
Have tried to build a solution.
Is this conversation useful?
Choose your
customer.
Vague customer definitions.
Multiple customer
definitions.
Lack of direction.
Specific definitions
allow for validation or invalidation.
And that speeds progress.
Take a look at the
customers’ world
Looking at different aspects of
their lives, we’ll examine our
own beliefs about them, who
they are – and if they really
exist, how to frame our value in
their context.
Find early adopters.
Find specific customers.
Specific value propositions are
more compelling and help you
get early traction.
Specific customer definitions
help find them quickly, and
point out scalable channels to
reach them.
Zoom in!
Product Market
Action Customer
How deep do you go?
They are real people (not attributes!)
It’s clear where to find them.
You’ll walk away if they aren’t a good fit.
Customer Slicing
Jobs Obstacles Gains
Current
Solution
Balancing focus &
opportunity
What I
can do
What I’ve
got
Small partnerships.
Affordable Loss.
Are you a frog?
Or a fish?
Startups are
learning
organisations.
2 stages of learning
Discovery Validation
A man wakes up,
turns on the radio,
goes upstairs, turns
on the light, and kills
himself.
Image by wstryderImage by wstryder
Image by wstryderImage by wstryder
2 stages of learning
Discovery Validation
2 stages of learning
Learn Confirm
2 stages of learning
Ask Sell
2 stages of learning
Observe Experiment
Does anyone
care at all?
Do we understand
the industry?
Does anyone
care at all?
Do we understand
the industry?
Will any
pay for it?
Are we building
the right product?
Anyone will tell you that your
idea is great if you annoy
them long enough.
Dear Mom,
Don’t you think
I’m great?
Love,
Your son
Actually, not just your mom lies.
Your customers are full of shit too.
www.foundercentric.com
Past, not future
Fact, not opinion
Specifics, not general
(Talk about their life, not your idea.)
The Mom Test
Good or bad questions?
❝
❞
Do you think it’s
a good idea?
❝
❞
Do you think it’s
a good idea?
❝
❞
Would you buy a
product which solved
this problem?
❝
❞
Would you buy a
product which solved
this problem?
❝
❞
How do you currently
deal with this problem?
❝
❞
How do you currently
deal with this problem?
❝
❞
How have you dealt
with this problem?
❝
❞
When does this
problem pop up?
❝
❞
When does this
problem pop up?
❝
❞
When’s the last time
that happened?
❝
❞
What makes this time-
consuming or go off-
track?
❝
❞
What makes this time-
consuming or go off-
track?
❝
❞
Has this ever been more
time-consuming than
normal or gone off-track?
Their words - not yours!
One phrase per card.
Pair. One interviewer, one notetaker.
Recording the
right stuff.
❝
❞
Please show me
how you...
❝
❞
Please show me
how you...
❝
❞
Please tell me how...
I’m trying to learn how
you...
❝
❞
Please tell me how...
I’m trying to learn how
you...
❝
❞
Talk me through the last
time you had this
problem.
❝
❞
Talk me through the last
time you had this
problem.
❝
❞
What did you try
to do about it?
❝
❞
What did you try
to do about it?
Person Job Problem Measure Solution Excited Guilty Upset
Important signals
❝
❞
Please help me
understand...
❝
❞
Please help me
understand...
❝
❞
How much would
you pay for this?
❝
❞
How much would
you pay for this?
❝
❞
Can I ask why?
❝
❞
Can I ask why?
❝
❞
Talk me through
how you decide.
❝
❞
Talk me through
how you decide.
❝
❞
Talk me through
how you decided.
❝
❞
How much money does
this problem cost you?
❝
❞
How much money does
this problem cost you?
❝
❞
How much money has
this problem cost you?
❝
❞
How much should
we charge?
❝
❞
How much should
we charge?
❝
❞
What’s your
budget?
❝
❞
What’s your
budget?
❝
❞
How soon can
you start?
❝
❞
How soon can
you start?
❝
❞
What would need to
happen before you could
really start using it?
❝
❞
What would need to
happen before you could
really start using it?
❝
❞
Ever had any problems or
delays getting something
like this going/bought?
❝
❞
Who else
should I talk to?
❝
❞
Who else
should I talk to?
Opinions are worthless.
2 stages of learning
Discovery Validation
2 stages of learning
Learn Confirm
So, we had a meeting!
❝
❞
Claudia
Sounds great. I
love it!
❝
❞
Claudia
Sounds great. I
love it!
❝
❞
Jeremy
Brilliant -- let me know
when it launches!
❝
❞
Jeremy
Brilliant -- let me know
when it launches!
Compliment?
Stalling tactic?
They don’t care. :(
❝
❞
Jeremy
There are a couple
people I can intro you
to, when you’re ready.
❝
❞
Jeremy
There are a couple
people I can intro you
to, when you’re ready.
Partial commitment?
Validate by going for
full commitment.
❝
❞
Claudia
I would definitely
buy that!
❝
❞
Claudia
I would definitely
buy that!
ANGER!
Meetings succeed when they
advance to the next step.
Examples of
advancement
> Permission to contact again
> Clear next meeting
> Introduction to decision-maker
> Commitment to run a trial
> Pre-purchase
Real learning comes from
Facts Commitment
Always know your
big 3 questions.
Tweetable Text
How do authors pre-build their customer list?
How do authors test copy and learn about their readers?
How do authors prioritise their time when writing?
Leancamp
What awareness channels can we partner with?
What do people learn at Leancamp that they apply?
What do famous thought-leaders get out of conferences?
What are your Big 3 right now?
Does it do what it says on the tin?
Can we make it usable enough?
Do people really, truly want it?
Take 3 minutes to write them down.
Are they to learn or confirm?
Business
Model
Design
What’s the most precious
resource for a startup?
You’ve got a ton of options
Early stage strategy is
finding the few that matter.
Where is
the love?
We obsess over
the details.
And miss the big picture.
4% conversion rate = win!
4% conversion rate = win?
Marketing Success!
Business fail.
We had a
big picture
problem!
Alex Osterwalder’s
Business Model Canvas
is the big picture.
Your business model has holes
We wanted more users, so
we marketed...
...which was rendered
worthless by our retention.
Stuff’s going wrong...
Let’s embrace it!
Test the
scary bits first.
(not the fun bits)
Navigating through options, hypotheses
& environmental changes.
Understanding dynamics between
parts & articulating a clear story.
Parts
Whole
Progress
Checklists & dashboards1
2
3
Changing something
changes everything.
A “simple”
change.
You can’t think
about any one part
without thinking
about the rest.
Clothing
labels &
distributors
Faster tomarket
Faster production
Production
Production fees
Designers
Consumers
Fan Base
Selling Clothes
FacebookFacebook
You design -
we do the rest.
Faster production
Production
Personal
support
Online
tools
Pool of talent
Use the Canvas as
X-Ray goggles.
What on earth are
you on about?
Pick my brain.
Good for vision,
inventing and improving.
Bad for getting stuck on
specifics that don’t work.
Tenacity
Platform Platform
Platform Platform
Mass customisation
Value-based
pricing
App sale +
in-app purchase
Subscription
Transactional
Multi-sided
market
Licensing
Crowdsource
Ad-supported
Event-supported
SaaS
Bundling
Viral
Direct-over-viral
Purchase-timing
Know your options.
What’s the
big opportunity?
Business model prototyping
No writing on the canvas - use post-its
Use the post-its as you discuss. Move them around.
3 minutes max per model - quantity over quality
Business model prototyping
No writing on the canvas - use post-its
Use the post-its as you discuss. Move them around.
3 minutes max per model - quantity over quality
Tip - aim for around 4-7 post-its per model
Nail down your business model,
one bit at a time.
Option cards
Mentor Mental
Filtering
Halo Effect
One dynamic per card.
1 -3 dots per card.
How do
authors
prebuild
customer lists?
Sell to y2k
software houses
through Initrode
Evan can intro
me to Joe at
Initrode.Will ppl buy pet
food on
Facebook?
Lock-in
through re-
installation
costs.
Will this offer
differentiate
against GMail?
Big funding,
scale userbase
through paid
channels.
Greater cloud
adoption
opening a
market?
Business
Model
Hacker!
Understanding our options.
Who will our first 10 customers be?
Where are they looking? And for what?
What needs do your customers have?
How do they solve them now?
After I have 100 customers, I will acquire the next
1,000 through _____________ .
I will make money by ___________ .
How would our business change if we could only
charge 5% of we’re planning to?
How would our business change if we didn’t have
a web site?
When customers have this problem, or are
tackling this task, where do they seek help and
advice?
Which customers have different expectations
about service levels or relationship?
What are our possible revenue streams? What
customers pay for that, in that way, and why?
Are there customers at the low-end who would
pay less for lower performance? What if they
were our ONLY customer?
How could we increase switching costs?
Who are the people in our network that can fast-
track our business? How?
Metrics
Sticky
Paid Acquisition
Viral
Understanding growth
Growth Engines,
from The Lean Startup
by Eric Ries
Acquisition
Activation
Retention
Referral
Revenue
Pirate Metrics, by Dave McClure
Which number matters most?
B2C Free - retention, referral, activation, acquisition, revenue
Freemium - retention, revenue, referal, activation, acquisition
Enterprise - revenue, referral, activation, acquisition, retention
Acquisition cost, capacity, rate
Activation cost, rate, %
Retention rate, %
Referral rate, k-factor, %
Revenue per customer, per user
Your naked numbers.
Write down the big numbers and
growth engines you’re
considering, one per card.
Option cards
Cohort analysisSimple rates
Cohort
a group of people who share a common
characteristic within a defined period.
1.Pick a metric you want to improve.
2.Group users into cohorts based on date,
or experiment, or characteristic.
3.Track, looking for improvement.
In 3 steps.
forentrepreneurs.com
only tells you one thing.
Split Testing
works in low volume if you’re testing
for big enough changes.
Split Testing
Your Dashboard
Draw it on a page.
Keep it simple.
Keep it actionable.
(What is your goal?)
Grow like weeds!
Spring up in unexpected places.
Grow quickly, or die and move on.
Being clear on
your next step.
“I wish I knew that sooner.”
Building with
a heartbeat.
Build
Learn
Measure
Minimum Viable
What is the minimum thing I need to build
to prove or disprove this?
Pick a
learning goal
What big make-or-break risks
or idea is the one you want to
nail down this week?
(Hint: use the Canvas or
metrics to make sure it’s
relevant.)
Have a conversation
with your idea.
How can I isolate the part I want to test?
Starting low fidelity.
One piece
at a time.
Signal.ly
Understanding
analogs
Making sure
you’re in the
right place.
48-hour
Marshmallow
Start with your
learning goal.
Pick a learning goal.
Pick a measurement.
Draw your MVP on a blank sheet.
Build
Learn
Measure
Meeting every week with fellow founders to share our
weekly progress, and get advice to stay on track.
Braintrust
Braintrust
3 minutes each to present
your learning & goals. 5
minutes each for feedback.
Feedback is focused on risks,
learning methods &
environment - not your ideas!
Take 3 minutes to prepare at:
foundercentric.com/
learningprogress
What you learned.
Progress
Obstacles in reaching your learning goal.
Problems
What will you learn by next week?
Learning Goal
Investor relations
Transparency & clarity on
where they can help.
Make the accelerator accelerate you!
Lead time
Iteration
Improve the big picture
Learn, then confirm
Tangible next steps
Do Less
Principles
Build
Learn
Measure
2 stages of learning
Learn Confirm
Make it your own.
Salim Virani
@SaintSal
salim@saintsal.com
www.foundercentric.com
Thanks!

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