This document summarizes key principles from Eric Ries' book The Lean Startup. It discusses how traditional business planning often fails because it creates products no one wants. The Lean Startup method teaches entrepreneurs to drive startups through a build-measure-learn process of validated learning via minimum viable products and constant experimentation. This allows startups to test hypotheses, learn quickly from failures, and pivot as needed to find product-market fit instead of persisting on an unsuccessful path. The document outlines Lean Startup techniques including experiments, the value and growth hypotheses, and using early adopters to refine products based on feedback.

3. Why do they fail?
Because they build something that no one wants

4. The goals of the Bootcamp
• At the end of the six months to
have worked through the
principles of the book
• To apply many of them to real
world situations that apply to
our own businesses
• To embed some functions into
your activity that give you a
cutting edge

5. This book is for:
• Those looking to start a business
• Existing businesses that are seeking
alternative revenue streams through
innovation
• Existing businesses struggling with
growing pains
• Anyone who wants to learn about how
to develop their business

6. Introduction
My own experience of failure

7. Non-Validated Learning

8. Not enough
• Did not set out to fail so did
not set out to learn
• Learning was an excuse for poor
execution
• It took far too long to learn
• Not enough assured success

9. My search for an answer
My beliefs are:
• Entrepreneurship is not a gift
of genetics it can be learned
therefore it can be taught
• Hard work and dedication do not
automatically create success
• Business is hard and failure is
not unlikely so we should LEARN
effectively and fail fast

10. Clearly there has to be a
better way

11. Lean
A brief history
• 1911 - Taylor created the science of
management
• 1913 – Henry Ford bought in the
production line
• 1930 – Toyota Production System (TPS)
created
• 1940 – Ford oversaw ‘A Bomber a Day’
mantra at Willow Run factory
• Post War – Toyota created Just In
Time production process
Lean and Six Sigma were created as
signs of manufacturing excellence

12. And now?
• 1980’s to date - Service sector
dominance has created the need
for lean manufacturing to be
applied to the service sector
• 2011 – Eric Reis wrote is #1
Best seller – the Lean Startup

13. Startup definition
“A human institution designed to
create new products and services
under conditions of extreme
uncertainty.”

14. Thoughts on Traditional
Business Planning
• I wrote extensive business
plans for my business- I still
failed
• People are fearful of the
planning process- see it as a
work of fiction
• A plan is a research exercise
written in isolation before a
product is built

16. Lean Startup Method
“Teaches you how to drive
a startup; how to steer,
when to persevere and grow
a business with maximum
acceleration”

17. Lean Startup Principles
Entrepreneurs
are everywhere
Entrepreneurship
is Management
Build-Measure-
Learn
Validated Learning
Innovation Accounting

18. The Book is split up into
3 parts
As in a ‘Grand statement of what must happen’
to a ‘vague sense of what will happen’
Part 1 - VISION

19. Vision consists of:
Entrepreneurial Management
A NEW PARADIGM

20. Entrepreneurial management
• Streamline processes
• Create rigour
• Avoid the ‘just do-it’ model
of activity
• Bring in the word ‘pivot’
• Tap into ‘the engine of
growth’

21. Build what people want
Product –
constantly
optimising
Strategy – a
product
roadmap
Vision – Your True
North
Why
How
What

22. Every setback is an
opportunity
Product
Strategy
Vision
Optimisation
Pivot
Learn
Measure
Build

23. A startup is a portfolio
activities
• Engine running
• Customer acquisition
• Looking after existing customers
• Product / service improvement
• Marketing
• Financial control

24. New Product Development
In traditional management failure to deliver is a failure of
planning and execution – it is penalised

25. New Product Development

26. Learn

27. Lean Startup – Validated
Learning
“The process of
demonstrating
empirically that a team
has discovered valuable
truths about a
startups’ present and
future business
prospects”

28. The value of validated
learning
Concrete results
Accuracy
Speed of results
“learning is the essential
unit of progress for
startups” ER

29. In Lean Startup
Every activity is an experiment
Questions
• Should this product be built?
• Can we build a sustainable
business around this service?
• What have we learned from this
activity?

30. Experiment
• Create a clear hypothesis to test
• What predictions can be made and then
substantiated?
• Let the startup experiment be governed by
the vision

31. Two hypotheses
Value hypothesis - “To test if a
product or service really
delivers value to customers once
they are using it”- ER
Growth hypothesis – “To test how
new customers will discover the
product or service” - ER

32. An experiment is a product
1.Find early adopters
2.Gain customers to be
advocates ahead of wider
distribution
3.Create a specification
rooted in feedback

33. What we seek to discover
1.Do consumers recognise that
they have the problem that you
are trying to solve?
2.Would they pay for the
solution?
3.Would they buy this from you?
4.Can we build a solution for
that problem?

34. To come
09 Aug 2016 – The Minimum Viable
Product
13 Sep 2016 – The Feedback Loop
11 Oct 2016 – Pivot or persist
08 Nov 2016 – Root cause
analysis – The 5-Whys
13 Dec 2016 – The accelerate
through innovation

35. Any Questions?
Back on the 9th of August