Agile startup
This document discusses how traditional startups can be improved upon using agile principles of continuous customer interaction, low burn rates, and rapid iteration. It proposes that startups should: 1) Continuously interact with customers through development to test hypotheses and uncover unknowns rather than assume knowledge up front. 2) Have revenue goals from the start and limit scaling until revenue is achieved to keep burn rates low. 3) Use agile product development principles like continuous integration and minimum viable products to get feedback faster than competitors. 4) Parallel this agile development with continuous customer validation, discovery, and building to turn market risk hypotheses into facts with measurable gates for investors.
Agile startup
- 1. Agile Startup Low Burn by Design not Crisis By Robin Low
- 2. Timing is everything. Adaptability is key, not the business plan. Traditional startups are fighting yesterday’s war.
- 3. TRADITIONAL STARTUPS • High burn rate • Swing for the fences • Full management teams • Assume customer is known • Assume features are known • Assumes growth is by execution Traditional
- 5. Boyd: Winning is about Agility Rule The OODA Loop 1 • Observe • Orient • Decide • Act
- 6. Boyd Redefines the Rules to Win Rule • Agility requires a continuous cycle of 2 interactions with the Environment • But you can’t do it from a desk
- 7. Winners are Those Who Can Move Faster Than Their Competitors Rule • Winning requires constant assessment of 3 change and ways to mitigate risk • Iterating faster than competitors yields substantial advantage
- 8. Facing Reality at Today’s Startup There is no 2nd Place Rule • Uncertain environment • Rapid, unanticipated 4 changes that lead to disorientation • Constant threats to any initiative • Burn rate (time, fuel, bullets, dollars) limits window of opportunity
- 9. Using OODA to Create “Agile Startups” And Changing the Startup Rules Customer Development Agile Product Development
- 10. Agile Startups Building a New Wave of Companies Customer • Continuous customer interaction Development • Revenue goals from day one • No scaling until revenue • Assumes customer and Agile Product features are unknowns Development • Low Burn by Design – Not Crisis
- 11. Agile Startup Principles Extraordinary Value at Low cost in Little Time • Leverages: Customer Development - Technology commoditization - Agile management practices - Customer Development Agile Product • Designed to test hypothesis Development and answer the unknowns
- 12. The Agile Startup Agile Product Development • Continuous cycle of Product Development - Product release cycle in hours not years - Tightly coupled with customer Agile Product development Development - Minimum feature sets, maximum customer coverage
- 13. The Agile Startup Customer Development • Continuous cycle of customer Customer Development interaction - Rapid hypothesis testing about market, pricing, customers, … - Extreme low cost, low burn, tight focus - Measurable gates for investors
- 14. The Agile Startup Customer Development Parallels Agile Development Agile Development Business Agile Continuous Continuous Concept Development Test Ship Customer Development Customer Customer Customer Customer Discovery Validation Creation Building
- 15. Customer Development Turns Market Risk/Product Fit Hypothesis into Facts Customer Customer Customer Customer Discovery Validation Creation Building
- 16. Agile Startup Advantages • Builds low-burn companies by Customer Development design - Low cost market risk testing • Organized around learning and discovery Agile Product • Right model for current Development conditions
- 17. It is up to you to build the next wave of capital efficient startups https://www.facebook.com/socialhub