Stop planning and start seeking                         or  “How to throw away your business plan and go faster”          ...
Your Plan A is wrong.Yes, yours.  How will you get to Plan B?   Image courtesy John Mullins & Randy Komisar
Most startups fail.57 of 58 products launched fail.    I think this can change.
Who are you?Whom am I?
SOME NEW PERSPECTIVESON BUILDING BUSINESSES
Entrepreneurship is not the path tosure riches but is a sure path to a life            of rich living.✓Change the world✓ B...
This is about testing to findanswers rather than trying to be the mythical visionary founding           entrepreneur
Youre an adventurer in search of  answers. Be like Shackleton!                "MEN WANTED FOR                HAZARDOUS JOU...
Be a seeker, not a planner
The second you leave shore, youre a      pirate on a sinking ship.
Stay firm on the mission (passion)and flexible on the plan (how you make money from your passion)
You are Billy Durant, not Alfred Sloan          Image courtesy Steve Blank
Startups Search.Companies Execute. Image courtesy Steve Blank
If you still want a business plan make it one page long. Really.
Using traditional financialstatements as your weekly guide  to the business is wrong. Usestartup metrics that suit what it ...
Startup metrics are appropriate  to the business and tied to   proving or disproving your          hypotheses.
FOCUS ON BUSINESS MODELS  NOT ON BUSINESS PLANS
What is a business model?
The illustration approach
Business Model Generation Approach   Image courtesy “Business Model Generation” book
Business      Relevant       Relevant                   Hypotheses   Model                                   Leaps of Fait...
Business      Relevant       Relevant                   Hypotheses   Model                                   Leaps of Fait...
Business      Relevant   Relevant                  Hypotheses   Model                              Leaps of Faith used to ...
Business      Relevant   Relevant                  Hypotheses   Model                              Leaps of Faith used to ...
Business      Relevant   Relevant                  Hypotheses   Model                              Leaps of Faith used to ...
Business      Relevant   Relevant                  Hypotheses   Model                              Leaps of Faith used to ...
Business      Relevant   Relevant                  Hypotheses   Model                              Leaps of Faith used to ...
Business      Relevant   Relevant                  Hypotheses   Model                              Leaps of Faith used to ...
Business      Relevant   Relevant                  Hypotheses   Model                              Leaps of Faith used to ...
Business      Relevant   Relevant                  Hypotheses   Model                              Leaps of Faith used to ...
Business                                                    Hypotheses             Relevant       Relevant      Leaps of  ...
Business   Hypotheses  Model     used to test           Setup        Cust 1        2             3          4 Element     ...
Take-aways•Have a different business model than competitors•Use the Five elements to create cash for growth•Dashboard it s...
CONSIDER USING LEANSTARTUP APPROACHES
Know your problem/solution space               Problem                Solution                                Waterfall pr...
The lean startup approach(thanks to Eric Ries at www.startuplessonslearned.com)• Search for the business model with the  “...
Myths about Lean Startups• Myth 1: Lean means cheap. Lean startups try to spend  as little money as possible.• Myth 2: The...
Use customer development tounderstand what to build for whom
Implement with agile development       approaches including• agile programming• features should be pulled, not pushed• con...
These are parallel processes   that feed each other!
Use commoditized and open sourceand open platform technologies to decrease costs and increase speed•commodity technology•o...
Minimum viable product• allows you to collect the maximum information with the  minimum of effort• probably 1/10 of what y...
CASE STUDIES
Resources• Steve Blank: www.steveblank.com• Eric Ries: www.startuplessonslearned.com• Randy Komisar: Getting to Plan B• Ke...
THANK YOU!      Troy Angrignon  troy@troyangrignon.com      @troyangrignonhttp://www.troyangrignon.com
OCT 5, 2010: BCIC New Ventures Regional Series "The Lean startup" r8
OCT 5, 2010: BCIC New Ventures Regional Series "The Lean startup" r8
OCT 5, 2010: BCIC New Ventures Regional Series "The Lean startup" r8
OCT 5, 2010: BCIC New Ventures Regional Series "The Lean startup" r8
OCT 5, 2010: BCIC New Ventures Regional Series "The Lean startup" r8
OCT 5, 2010: BCIC New Ventures Regional Series "The Lean startup" r8
OCT 5, 2010: BCIC New Ventures Regional Series "The Lean startup" r8
OCT 5, 2010: BCIC New Ventures Regional Series "The Lean startup" r8
OCT 5, 2010: BCIC New Ventures Regional Series "The Lean startup" r8
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OCT 5, 2010: BCIC New Ventures Regional Series "The Lean startup" r8

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OCT 5, 2010: BCIC New Ventures Regional Series "The Lean startup" r8

  1. 1. Stop planning and start seeking or “How to throw away your business plan and go faster” prepared for New Ventures BC byTroy Angrignon,VP Sales & Marketing, Cloudscaling
  2. 2. Your Plan A is wrong.Yes, yours. How will you get to Plan B? Image courtesy John Mullins & Randy Komisar
  3. 3. Most startups fail.57 of 58 products launched fail. I think this can change.
  4. 4. Who are you?Whom am I?
  5. 5. SOME NEW PERSPECTIVESON BUILDING BUSINESSES
  6. 6. Entrepreneurship is not the path tosure riches but is a sure path to a life of rich living.✓Change the world✓ Build an organization of lasting value✓Make customers lives better
  7. 7. This is about testing to findanswers rather than trying to be the mythical visionary founding entrepreneur
  8. 8. Youre an adventurer in search of answers. Be like Shackleton! "MEN WANTED FOR HAZARDOUS JOURNEY. LOW WAGES, BITTER COLD, LONG HOURS OF COMPLETE DARKNESS. SAFE RETURN DOUBTFUL. HONOUR AND RECOGNITION IN EVENT OF SUCCESS."
  9. 9. Be a seeker, not a planner
  10. 10. The second you leave shore, youre a pirate on a sinking ship.
  11. 11. Stay firm on the mission (passion)and flexible on the plan (how you make money from your passion)
  12. 12. You are Billy Durant, not Alfred Sloan Image courtesy Steve Blank
  13. 13. Startups Search.Companies Execute. Image courtesy Steve Blank
  14. 14. If you still want a business plan make it one page long. Really.
  15. 15. Using traditional financialstatements as your weekly guide to the business is wrong. Usestartup metrics that suit what it is you are trying to do.(This will make more sense later.)
  16. 16. Startup metrics are appropriate to the business and tied to proving or disproving your hypotheses.
  17. 17. FOCUS ON BUSINESS MODELS NOT ON BUSINESS PLANS
  18. 18. What is a business model?
  19. 19. The illustration approach
  20. 20. Business Model Generation Approach Image courtesy “Business Model Generation” book
  21. 21. Business Relevant Relevant Hypotheses Model Leaps of Faith used to test Analogs antilogs Element LOF Revenue ModelGross Margin Model Operating Model WorkingCapital model Investment model Model courtesy “Getting to Plan B”
  22. 22. Business Relevant Relevant Hypotheses Model Leaps of Faith used to test Analogs antilogs Element LOF Revenue ModelGross Margin Model Operating Model WorkingCapital model Investment model Model courtesy “Getting to Plan B”
  23. 23. Business Relevant Relevant Hypotheses Model Leaps of Faith used to test Analogs antilogs Element LOF Revenue ModelGross Margin Model Operating Model WorkingCapital model Investment model
  24. 24. Business Relevant Relevant Hypotheses Model Leaps of Faith used to test Analogs antilogs Element LOF Revenue ModelGross Margin Model Operating Model WorkingCapital model Investment model
  25. 25. Business Relevant Relevant Hypotheses Model Leaps of Faith used to test Analogs antilogs Element LOF Revenue ModelGross Margin Model Operating Model WorkingCapital model Investment model
  26. 26. Business Relevant Relevant Hypotheses Model Leaps of Faith used to test Analogs antilogs Element LOF Revenue ModelGross Margin Model Operating Model WorkingCapital model Investment model
  27. 27. Business Relevant Relevant Hypotheses Model Leaps of Faith used to test Analogs antilogs Element LOF Revenue Model For a margin return model, what is our gross margin model?Gross Margin Model How do we maximize gross margin? Operating 0-30% don’t do it Model 30-50% okay WorkingCapital model >50% interesting Investment >90% Awesome model
  28. 28. Business Relevant Relevant Hypotheses Model Leaps of Faith used to test Analogs antilogs Element LOF Revenue ModelGross Margin Model Operating Model WorkingCapital model Investment model
  29. 29. Business Relevant Relevant Hypotheses Model Leaps of Faith used to test Analogs antilogs Element LOF Revenue ModelGross Margin Model Operating Model WorkingCapital model Investment model
  30. 30. Business Relevant Relevant Hypotheses Model Leaps of Faith used to test Analogs antilogs Element LOF Revenue ModelGross Margin Model Operating Model WorkingCapital model Investment model
  31. 31. Business Hypotheses Relevant Relevant Leaps of Model used to test Analogs antilogs Faith Element LOF Sally’s Sally’s His pricing Revenue 10 cust / day Lemonade Lemonade model will Model x $1 / cust Stand Stand make more $ Gross He can talk Ask for the Co-branding LemonCo into Margin ? giving him free order companies Model lemon crystals (get it? Y/N) I can get Mom Ask Mom toOperating Any family ? to work for work for free Model business! free (Y/N) Working I can get the sign Ask stationery making stuff now store if I can pay for Capital Costco ? but pay LESS pens Monday AND model LATER. get a discount! I can launch bizInvestment Uncle Tony’s Confirm the ? without model Pedi-cab above? (y/n) investment!
  32. 32. Business Hypotheses Model used to test Setup Cust 1 2 3 4 Element LOF Revenue 10 cust / day 25 cents Model x $1 / cust 50 cents $2!!! $1 (!) Gross Ask for the Got half of Lemonade too lemon flavour weak; need lemon mix not good for Margin order what I asked more crystals some; need Model (get it? Y/N) for - rats than I thought. good now TWO KINDS? Ask Mom to Mom’sOperating Model work for free busy - - - - (Y/N) Sunday Ask stationery Got a Working store if I can pay discount but Capital for pens Monday - - - - model AND get a have to pay discount! up front. Dang.Investment Confirm the model above? (y/n) Needed $2 - - - - for big pens
  33. 33. Take-aways•Have a different business model than competitors•Use the Five elements to create cash for growth•Dashboard it so you can track your progress
  34. 34. CONSIDER USING LEANSTARTUP APPROACHES
  35. 35. Know your problem/solution space Problem Solution Waterfall processes Field of DreamsKnown Nuclear Reactor 1% of the time Construction Customer Agile Processes Development ProcessUnknown coding as you learn 99% of the time
  36. 36. The lean startup approach(thanks to Eric Ries at www.startuplessonslearned.com)• Search for the business model with the “Customer Development Process.”• Implement the business model with agile processes such as agile/extreme programming.• Leverage free and open source and open platform solutions to accelerate time to market.• Do so by using a minimum viable product approach
  37. 37. Myths about Lean Startups• Myth 1: Lean means cheap. Lean startups try to spend as little money as possible.• Myth 2: The Lean Startup methodology is only for Web 2.0, Internet and consumer software companies• Myth 3: Lean Startups are bootstrapped startups• Myth 4: Lean Startups are very small companies• Myth 5: Lean Startups replace vision with data or customer feedback
  38. 38. Use customer development tounderstand what to build for whom
  39. 39. Implement with agile development approaches including• agile programming• features should be pulled, not pushed• continuous deployment is key• small frequent releases• doing good startup engineering vs. good engineering
  40. 40. These are parallel processes that feed each other!
  41. 41. Use commoditized and open sourceand open platform technologies to decrease costs and increase speed•commodity technology•open source tools•no capex cloud computing resources•what else?
  42. 42. Minimum viable product• allows you to collect the maximum information with the minimum of effort• probably 1/10 of what you consider to be “the minimum”• could be a button (and no code) or a brochure (but no product).• It is not about MINIMAL product, it is about MINIMUM VIABLE product.• Use your judgement. Can you learn this lesson with less? If not, use more.• Tools of the trade: smoke tests, landing pages, A/B tests, SEM, prototypes, index cards, mockups.
  43. 43. CASE STUDIES
  44. 44. Resources• Steve Blank: www.steveblank.com• Eric Ries: www.startuplessonslearned.com• Randy Komisar: Getting to Plan B• Kent Beck: Agile Manifesto• Brant Cooper & Patrick Vlaskovitz: The Entrepreneur’s Guide to Customer Development• Alexander Osterwalder & Yves Pigneur: Business Model Generation• Lean Startup Wiki leanstartup.pbworks.com
  45. 45. THANK YOU! Troy Angrignon troy@troyangrignon.com @troyangrignonhttp://www.troyangrignon.com

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