The document discusses the principles and strategies essential for start-ups to succeed, emphasizing that they must adapt unique approaches unlike larger companies due to their high-risk environments. Key topics include identifying customer needs, defining a unique value proposition, and establishing revenue streams while maintaining a lean cost structure. It stresses the importance of gathering metrics, refining ideas, and securing a competitive advantage to avoid common pitfalls that lead to start-up failure.

1. 100. Introduction to Lean
Making sense of it all
Nikos Palavitsinis, Agro-Know

2. Lean AKademy, March-April, 2014
Startups
• Start-ups are NOT smaller versions of a bigger
company…
• As such, they should not be trying to create
value with the same techniques or tools
• They operate in a highly risky, ever changing
environment, with limited resources

3. Lean AKademy, March-April, 2014
101. Why start-ups fail
• The entrepreneurs live in a vacuum
• Their idea doesn’t uniquely solve a big problem
• They run out of cash
• They invent concepts and not products
• They listen to bad advice from the wrong
people
• The market moves on them, or moves in an
unexpected way

4. Lean AKademy, March-April, 2014
Rules of the Lean AKademy
• You can be wrong (but you will correct yourself)
• Be concise, not a philosopher
• Think in the present
• Product, customer, value
• Experiment
– Real one, not an academic exercise… not any more!

5. Lean AKademy, March-April, 2014
102. Ideas’ Pool
• We have some ideas already
• You have some of your own
• Let’s look at them…
• Pick one!

6. Lean AKademy, March-April, 2014
103. Think about your customer
• No point in discussing ANY idea if there’s no
one interested in paying for it
• You have 10’ to think of the customers that
would be willing to buy your product
• NOT users or your mom…!
Customers, paying customers!!
• Write them down on a separate A4 paper

7. Lean AKademy, March-April, 2014
Think of…
• Early adopters
– They are the first ones that will rush to pay for
your amazing product!
• Also other roles that interact with your
product

8. Lean AKademy, March-April, 2014
104. Identify their top 3 problems
• Identify three really important problems that
your idea/product will solve
• You have 10’ to think of the problems and
existing alternatives
• Write them down on a separate A4 paper

9. Lean AKademy, March-April, 2014
Example
• Problem: Difficulty in coordinating project
proposal writing
• Alternative #1: e-mail
• Alternative #2: skype

10. Lean AKademy, March-April, 2014
105. Unique Value Proposition
• What is the one compelling message that will
make your customers buy your product?
– Be different, but make sure your difference matters!
– Target early adopters
– Focus on finished story benefits
– Pick your words carefully & own them!
– What, who & why
– Study other good UVPs
– Create a high-concept pitch

11. Lean AKademy, March-April, 2014
Example
• Message = End result customer wants +
specific period of time + address objections
• Hot fresh pizza delivered to your door in 30
minutes or it’s free.
• You have 10’ to document on a separate A4
paper

12. Lean AKademy, March-April, 2014
106. Solution
• Customer interviews will change your
solutions more often than you think
• Be quick about defining the first set of
solutions (10’)
• Bind a solution to your problem as late as
possible

13. Coffee?

14. Lean AKademy, March-April, 2014
107. Reaching your audience
• Failing to build a path to customers, is #1
reason why start-ups fail
• Your initial goal is to learn, not to scale, so at
first it’s OK to rely on the “easy” channels
• Channels may change as your product idea
matures through time
• Use a new A4 paper – 5’

15. Lean AKademy, March-April, 2014
• Freer VS Paid
– Social media, Google AdWords
• Inbound VS Outbound
– Blogs, Ebooks, White papers, Webinars
– SEM, Print/TV Ads, Cold calling
• Direct VS Automated
– First sell manually, then automate
• Direct VS Indirect
– First sell the product yourself, then let others
• Retention before Referral
– Build a remark-able product

16. Lean AKademy, March-April, 2014

17. Lean AKademy, March-April, 2014
108. Revenue Streams
• How are you going to get money?
• Think of how much you will sell your first
version of your product (MVP)
• Don’t delay the “money” question…
• New A4 paper, 5’

18. Lean AKademy, March-April, 2014
Why?
• Price is part of the product
– It has the power to change its perception
• Price defines your customers
– Which customers you want to attract?
• Getting paid is your first validation
– The hardest action you can ask from
a customer early on

19. Lean AKademy, March-April, 2014
109. Cost Structure
• How much will it cost you to build it? Roughly
• Cost for research
• Cost for building the product
• Operational costs

20. Lean AKademy, March-April, 2014
Breaking even
• Since start-ups run on
a lean budget, it’s crucial
to make sure that you get
some income going on,
before you ran out
of money!

21. Lean AKademy, March-April, 2014
110. Metrics, metrics, metrics
• Acquisition
– The point where an unaware visitor turns into an
interesting prospect
• Activation
– The point where the customer has
the first gratifying experience

22. Lean AKademy, March-April, 2014
Metrics
• Retention
– Repeated use/engagement with your product
• Revenue
– Events that get you paid
• Referral
– Customers refer your product to others

23. Coffee?

24. Lean AKademy, March-April, 2014
111. Unfair advantage
• What cannot be copied and/or stolen from
your product?
– Imagine that your team steals the idea and opens
a second company next door. What is the one
thing they cannot take from you?
• 5’ and a new A4 paper

25. Lean AKademy, March-April, 2014
Some thoughts
• None of these companies were first movers:
Ford, Toyota, Google, Microsoft, Apple, or
Facebook
• Anything worth copying, will be copied
• Insider information, a dream team, large
network effects, community, existing
customers, etc.

26. Lean AKademy, March-April, 2014
For now…
• It’s ok to leave this box empty for now…
• Remember it’s here to make you really think
about how you can/will make yourself
different and make your difference matter.

27. 112. Putting Pieces Together

28. 112. Putting Pieces Together
Revenue StreamsCost Structure
Problems Unfair
Advantage
CustomersSolutions
Metrics Channels
Unique
Value
Proposition

29. Lean AKademy, March-April, 2014
113. Reflect, Research, Refine
• Reflect on your experience so far
• Research to understand your Canvas better
• Refine points that seem a bit unclear

30. Lean AKademy, March-April, 2014
114. Takeaways & Assignments
• Your comments for the process…
• How was it? Easy? Weird? Quick?
• Assignments
– Browse through Chapters 1-2 of Running Lean
– Complete your Lean Canvas on paper
– Put it online here: http://LeanCanvas.com

31. Lean AKademy, March-April, 2014
Questions?