This document summarizes key concepts from the Lean Startup and Customer Development methodologies. It discusses discovering customer problems and validating solutions through minimum viable products and pivoting based on metrics and feedback. Key steps include defining the customer problem/solution, finding early adopters, developing an MVP, achieving product/market fit, and scaling the business. Metrics like acquisition, activation, retention and referral are important to track progress. The goal is to spend money efficiently by testing hypotheses through customer interaction and validated learning.

1. LEAN STARTUP AT THE GATE
17-11-2010

2. Map
And the winner is...
Customer Development
Lean Startup

3. Map
And the winner is...
Customer Development
Lean Startup

4. Nessuna vita è rovinata tranne quella
la cui crescita si è arrestata
Oscar Wilde
Felix qui nihil debet
Proverbio latino

5. Source: Wikipedia through CIA’ s World Factbook 2010

6. And the winner is...
GROWTH
in particular...

7. Job Growth in U.S. Driven Entirely by Startups,
According to Kauffman Foundation Study
The importance of Startups in Job Creation and Job Destruction
www.kauffman.org

8. GROWTH through
STARTUPS

9. A startup is...
...a human institution designed to deliver a new
product or service under conditions of extreme
uncertainty
Source: Eric Ries
www.startuplessonslearned.com
and...
...an organization formed to search for a
repeatable and scalable business model.
Source: Steve Blank
http://steveblank.com

10. Startup
Scalable
Big
Business
>100M$
VC*
Not
Scalable
Small
Business
<10M$
No VC*
*Venture Capital

11. Investment Web based
Start-ups
Semiconductors,
Pharma, etc.
20K!
1M!
-
+
Barriers to entry100 10
-
Same Risk?
Same ROI?
Trends...

12. Investment Web based
Start-ups
Semiconductors,
Pharma, etc.
20K!
1M!
-
+
Barriers to entry100 10
-
Same Risk?
Same ROI?
Trends...
...but too many fail!!

13. ...most startups fail
from a lack of
customers than from
a failure of product
development...
Source: Steve Blank - http://steveblank.com/

14. Map
And the winner is...
Customer Development
Lean Startup

15. Source: Steve Blank - http://steveblank.com/
FROM...
Concept/
Bus. Plan
Product
Dev.
Alpha/Beta
Test
Launch/
1st Ship
PRODUCT DEVELOPMENT
TO...
Company
Building
Customer
Discovery
Customer
Validation
Customer
Creation
CUSTOMER DEVELOPMENT
Product/Market
FIT
PIVOT

16. Customer development is
a 4 step framework to:
Discover and validate the market for your
product,
build product features that solve customer's
needs,
test the correct method for acquiring and
converting customers,
deploy the right resources to scale the business.

17. During your
customer
development
process
DO NOT FORGET:

18. 1) Discover your MARKET
TYPE
If you are introducing a new product you can choose:
to enter an existing market
to introduce a new product
into a new market
to re-segment an existing market

19. 1) Discover your MARKET
TYPE
If you are introducing a new product you can choose:
to enter an existing market
to introduce a new product
into a new market
to re-segment an existing market
requires millions of
marketing dollars

20. 1) Discover your MARKET
TYPE
If you are introducing a new product you can choose:
to enter an existing market
to introduce a new product
into a new market
to re-segment an existing market
Even if you think that you are launching
a new product into a new market, most
likely you are re-segmenting a market
requires millions of
marketing dollars

21. SEGMENTATION - the practice of breaking down a large market
into a smaller groups of users who share specific needs/interests
and who reference each others.
Segmentation allows you to:
learn faster about market fit,
find an unoccupied segment,
become market leader,
focus existing resources.
2) Pay attention to
SEGMENTATION

22. 3) Try to find your EARLY
ADOPTERS...
They are important because:
they seek out a new technology to solve their real problems,
they want you to be successful,
they enjoy opportunities that allow them to be heroes.
EARLY ADOPTERS -
passionate, early users of
new technology or products
who understand its value
before mainstream market.
Source: E. M. Rogers - “Diffusion of Innovation”

23. 4) Hack your business
model

24. 4) Hack your business
model
Alexander Osterwalder
Business model tool
www.alexosterwalder.com

25. Map
And the winner is...
Customer Development
Lean Startup

26. Source: Eric Ries - www.startuplessonslearned.com
LEAN STARTUP
Product Development at Lean Startup
Unit of Progress: Validated Learning About Customers ($$$)
Problem: unknown
Solution: unknown
Customer Development
Hypotheses,
Experiments,
Insights
Data,
Feedback,
Insights
A s t a r t u p w h i c h c o m b i n e s i t e r at i v e
development methodologies with customer
development

27. Validate your core hypothesis
Customer
Problem
Solution
By Developing the MVP
By Pivoting
The process

28. Validate your core hypothesis
Customer
Problem
Solution
By Developing the MVP
By Pivoting
The process
Achieve
Product/Market
Fit

29. Validate your core hypothesis
Customer
Problem
Solution
By Developing the MVP
By Pivoting
The process
Produce a development and
marketing roadmap for
SCALING
Achieve
Product/Market
Fit

30. C.P.S. - Customer
Problem Solution
You must understand and describe the problem you are solving
from the customers perspective.
Useful questions:
who has the problem ?
what problem are you trying to solve ?
How are you solving the problem ?
How is the person dealing with the problem now ?
How is your solution better ?
Witch benefits does the user get by using your solution ?

31. C.P.S. - Customer
Problem Solution
Write specific assumptions. It
is better to be wrong
than vague. if you are
wrong you iterate. If you are
vague you have wasted your
time.

32. A product with the fewest number of
features needed to achieve a specific
objective and that people are willing
to pay for (or they are very disappointed
without this product).
MVP
Minimum Viable Product

33. Pivot means to change an element in your
customer-problem-solution hypothesis or business
model BUT DON'T ABANDON WHAT
YOU'VE LEARNED (AND YOUR CORE ASSETS).
The sooner you realize an HP is wrong
THE FASTER YOU CAN UPDATE IT.
PIVOT

34. Are you on the
right way ???
Business plan and market report will show you
the way

35. Are you on the
right way ???
Business plan and market report will show you
the way

36. Are you on the
right way ???
Metrics will show you the way...
Business plan and market report will show you
the way

37. “Our” favorite set of
metrics
METRICS DESIRED RESPONSE from users
Acquisition clicks links
Activation download/play
Retention signup
Revenue personalized easy purchased
Referral mentions

38. “Our” favorite set of
metrics
METRICS DESIRED RESPONSE from users
Acquisition clicks links
Activation download/play
Retention signup
Revenue personalized easy purchased
Referral mentions
Dave McClure
Startup Metrics
for Pirates

39. Requires 3 criteria be satisfied:
1. the customer is willing to pay for the product,
2. the cost of acquiring a new customer is less
then what they pay for the product,
3. there is sufficient evidence indicating the market is
large enough to support the business.
ALL BUSINESS MUST HAVE A PRODUCT MARKET FIT
MILESTONE
PRODUCT/MARKET FIT

40. Finally you have to scale...
MVP
Product
Market
Fit
from
startup
to
large
company
(Startups don't last forever)
VC Boost
Focus on:
positioning
customer
acquisition
hiring
marketing

41. Finally you have to scale...
MVP
Product
Market
Fit
from
startup
to
large
company
(Startups don't last forever)
VC Boost
Focus on:
positioning
customer
acquisition
hiring
marketing

42. Lean Startup:
IS NOT about spending/raising less money,
IT IS about spending/raising money more efficiently
IS NOT just for web / tech startups,
IT IS for any company working on innovation
IS NOT about replacing vision with feedback/data,
IT IS about making sure you have the right vision
Lean Startup encourage to be honest with yourself !!!
Myths about Lean Startup

43. THANKS

44. www.top-ix.org
www.irealize.eu
@top_ix
@i_realize