The document outlines key principles of the lean startup methodology, emphasizing the importance of reducing chaos and validating business assumptions to increase chances of success. It details the use of tools like the Lean Canvas for documenting and testing business models, and provides strategies for both B2B and B2C customer engagement and validation. Overall, the content aims to guide startups in effectively identifying market needs and iterating their offerings based on feedback.

1. Lean Startup Essentials
Lean Startup
Essentials
Lukas Fittl
lukas@fittl.com
Slides licensed under CC-BY-NC-SA.
Lean Startup is trademarked by Eric Ries.
Business Model Canvas is created by Alex Osterwalder
and licensed under CC-BY-SA.
Thursday, 27 October 2011

2. Lean Startup Essentials #1: Introduction
Agenda
• #1 Whats this all about?
• #2 Document your business & market
• #3 How to test B2B assumptions
• #4 How to test B2C assumptions
Thursday, 27 October 2011

3. Lean Startup Essentials #1: Introduction
Whats the Lean Startup?
• Reduce the (unavoidable)
chaos in a startup
• Increase your rate of
success
• Test your business
Eric Ries - The Lean Startup
http://lean.st assumptions
Thursday, 27 October 2011

4. Lean Startup Essentials #1: Lean Startup
Most startups fail
from a lack of (paying) customers.
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5. Lean Startup Essentials #1: Lean Startup
Why?
Wrong assumptions about your
customer, the market, how much
they will pay, etc.
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6. Lean Startup Essentials #1: Lean Startup
Startup:
Temporary organization used to
search for a repeatable and scalable
business model.
As defined by Steve Blank.
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7. Lean Startup Essentials #2: The Lean Canvas
We need
structured learning
before we execute.
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8. Lean Startup Essentials #2: The Lean Canvas
Document Your
Business
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9. Lean Startup Essentials #2: The Lean Canvas
The Lean Canvas
Alex Osterwalder - Business Model Generation Ash Maurya - Running Lean
http://businessmodelgeneration.com http://book.runningleanhq.com
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10. Thursday, 27 October 2011

11. Lean Startup Essentials #2: The Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
Top 3 problems Top 3 features
Single, clear, Can’t be easily Target customers
compelling copied or bought
message that
states why you
are different and
Key Metrics worth buying Channels
Key activities you Path to
measure customers
Cost Structure Revenue Streams
Customer Acquisition Costs Revenue Model
Distribution Costs Life Time Value
Hosting Revenue
People, etc. Gross Margin
Thursday, 27 October 2011

12. Lean Startup Essentials #2: The Lean Canvas
Problem
• The top 3 problems the
Problem Key Activities Value Customer Customer
Proposition Relationships Segments
customer is facing today,
Key Channels
Resources
within a given context
Cost Structure Revenue Streams
• These might be things they’ve
already started building in
house, because there is an
active need
Thursday, 27 October 2011

13. Lean Startup Essentials #2: The Lean Canvas
Customer Segments
• Narrow group of people that
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segments
buy/use your product
Key Channels
Resources
Cost Structure Revenue Streams
• Marketplace biz models =
2 cust segmens (or more)
Thursday, 27 October 2011

14. Lean Startup Essentials #2: The Lean Canvas
Value Proposition
• Single, clear, compelling
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segments
message that turns an unaware
Key Channels
Resources
visitor into an interested
Cost Structure Revenue Streams
prospect
• Your elevator pitch
• What you put on your
landing page
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15. Lean Startup Essentials #2: The Lean Canvas
Solution
• Whats the Minimum viable
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segments
product (MVP) ?
Key Channels
Resources
Cost Structure Revenue Streams
• Minimal set of functionality to
solve each problem of the
customer
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16. Lean Startup Essentials #2: The Lean Canvas
Channels
• How does the customer learn
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segments
about your product?
Key Channels
Resources
Cost Structure Revenue Streams
• B2B and B2C vastly different!
• SEM, SEO, Friend Invites, Social
Media, Direct Sales, Tradeshows,
PR, Content Marketing, etc.
Thursday, 27 October 2011

17. Lean Startup Essentials #2: The Lean Canvas
Revenue Streams
• How much is the problem
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segments
worth to the customer?
Key Channels
Resources
Cost Structure Revenue Streams
• Not how much it costs you
to implement the solution
• Avoid Free and Freemium
Its just a marketing tactic!
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18. Lean Startup Essentials #2: Document Your Market
Document Your
Market
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19. Lean Startup Essentials #2: Document Your Market
Example: Music Business
Usage in TV productions, ... GEMA & Co
Artist Manager Publisher PR Record Pressing
Radio, Print, Internet, TV
50/50 Cut
Booking Agent fixed fee / show Artist Record Label
revenue share,
details depending on offer
Venue Promoter sales price Distributor Digital Distributor
excl. cost for record
almost nothing ~ 50c/song nothing excl. shipping expenses
Beverage Sales Ticket Sales Tour Merchandise Sales In-Store Record Sales emusic iTunes Spotify Label Online Shop Sales
Fan
Thursday, 27 October 2011

20. Lean Startup Essentials #2: Document Your Market
Example: Hosting Industry
Controlpanels onapp Virtualization
Plesk Virtuozzo KVM
Technology Providers
cPanel VMware Xen
Focus on
PHP/Rails/etc. Location Support Company Size
Storage Hardware Hosting Industry Company Culture
Shared Hosting Cloud/VPS Hosting Managed Hosting Platform as a Service
Successful
Mass Market Web Apps
Customers
New/Failed
Agencies Developers Web Apps
Thursday, 27 October 2011

21. Lean Startup Essentials #2: Document Your Business & Market
These documents are alive
and easy to update
(not like your rusty old business plan)
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22. Lean Startup Essentials #3: Testing B2B Assumptions
Test Your B2B
Assumptions
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23. Lean Startup Essentials Literature
Listen to customers.
Do NOT execute
on a made-up plan.
http://steveblank.com
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24. Lean Startup Essentials #3: Testing B2B Assumptions
Customer Interviews
30 min in-person with
your prototypical customer
People like talking about their field -
explore their worldview.
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25. Lean Startup Essentials #3: Testing B2B Assumptions
How to conduct an interview
1. Set context & tell your story
2. Tell your problem hypothesis
3. Listen to their worldview
4. Ask for follow up / references
DO NOT sell them your solution
Thursday, 27 October 2011

26. Lean Startup Essentials #2: Customer Discovery
Online Market Tests:
Google Adwords
Fake Landing Page with
“Signup to be notified when we launch”
“Can we call you to ask a couple of Qs?”
Thursday, 27 October 2011

27. Lean Startup Essentials #2: Customer Discovery
Amy Hoy’s
Sales Safari:
Lurk in online forums of your
customer segment, learn how they
talk about products & benefits
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28. Lean Startup Essentials #4: Testing B2C Assumptions
Test Your B2C
Assumptions
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29. Lean Startup Essentials #4: Testing B2C Assumptions
Build-Measure-Learn
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30. Lean Startup Essentials #4: Testing B2C Assumptions
Iterate quickly through the
loop and improve your
engagement & retention
metrics.
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31. Lean Startup Essentials
Thanks!
Thursday, 27 October 2011