The document introduces the Lean Startup methodology, which aims to help new companies succeed by reducing failure rates. It discusses key aspects of the Lean Startup process like developing hypotheses about customers and the business model, validating hypotheses by getting customer feedback, building minimum viable products to test ideas, pivoting if needed, and achieving product-market fit in order to scale successfully. The document provides examples of companies that have used the Lean Startup approach and shares tips for applying the methodology.

1. INTRO LEAN to Lean Startup Methodology and what it means

2. Meet Joe… 4 time founder / CEO Raised $20 Million + Lean Startup user Lean Startup Teacher (40+ companies) Opinionated Guy…

3. What is Lean Startup… … and why should we care?

4. We Fail! 95% 5%

5. Mostly because the Product / Business Model misses

6. Help is on the Way ! 60% in 8

7. Help is on the Way ! 60% in 8 the next phase …

8. Part 2 Lean Startup in 19 Minutes “ The Lean Startup” is a trademark and service mark owned by Eric Ries

9. History Young but growing quickly Customer development – Steve Blank “ 4 Steps to the Epiphany ” Integrated with Lean Startup (2009) Rapid adoption

10. Popular on the West Coast Hot and growing on the East Coast Enclaves in all major cities (Boston, Chicago, South Fla, Raleigh-Durham, etc.) Seeing Mainstream Press (New York Times, WSJ) Popular – NYC Lean Startup sells out in hours Spreading

11. Not necessarily something new Experienced serial entrepreneurs “know but had to learn the hard way” Methodology and framework everyone can follow Perspective

12.  Hypotheses  Validate – Customer Development / testing / MVP  Pivot  Product-Market fit  Scale Process

13. Key assumptions needed for your business to succeed Every facet: customer, product, market, financials Hypotheses

14. People love to play the game Scene it People will play a similar game on Facebook but using advertising clips instead of movie scenes (with prizes) People will share game content on Facebook (walls), leading to more players. Advertisers will pay a high CPM for a “guaranteed engaged” audience Example: Hypotheses (from SourcePad client Talamu)

15. People love to play the game Scene it People will play a similar game on Facebook but using advertising clips instead of movie scenes (with prizes) People will share game content on Facebook (walls), leading to more players. Advertisers will pay a high CPM for a “guaranteed engaged” audience Example: Hypotheses (from SourcePad client Talamu) ✔ Yes ✔ 75% sure  ??? not sure ??? 50% sure 

16. Validate “ Get out of the building” – Steve Blank Customer interviews Walkthroughs of wireframes Landing page tests

17. Example: Validation Process Find people through networking, Craigslist, Starbucks (if needed, pay them with gift cards) Ask them about their life/work/problems Tell them or Show them your solution (or 2 solutions, one of them yours) Keep count

18. Minimum Viable Product Minimum you need to test validity Some include Wireframes, Landing Pages, Simulations along with working products Iterate (Agile) from there MVP

19. OR Example: MVP

20. Changing your direction Classic: changing your business model Significant changes New hypotheses Pivot

21. Example: Pivots Company First try Pivot Success Paypal Palm Pilot payments All payments $1.5 billion (ebay) YouTube Dating Site (Tune In Hook Up) YouTube $1.6 billion (Google) Starbucks Coffee beans / espresso makers Cafes $24 billion (Nasdaq)

22. Example 2 : SourcePad - before

23. Example 2 : SourcePad - after

24. When Metrics (Viral Co-efficient, Revenue, Conversion, CPM/CPC) Ready to scale Product Market Fit

25. Morning Stats Test: More people today than yesterday (significant %) Sean Ellis test: 40% of users “very disappointed” w/o your product Financial Test: Revs up & made a profit  can fund growth indefinitely You just know it (and others start to as well) Example: Product-Market Fit

26.  Hypotheses  Validate – Customer Development / testing / MVP  Pivot  Product-Market fit  Scale Process (review)

27. Summary

28. We have the tool-kit

29. Let’s use it … 95% 5%

30. to change the odds. 95% 5%

31. Questions & Contact Joe Chin Founder & CEO, SourcePad web + facebook + iPhone + RoR + php + .net [email_address] Skype: jchin_SP