I Realize Lean Startup Hack-nov2010
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This document summarizes key concepts from the Lean Startup and Customer Development methodologies. It discusses discovering customer problems and validating solutions through minimum viable products and pivoting based on metrics and feedback. Key steps include defining the customer problem/solution, finding early adopters, developing an MVP, achieving product/market fit, and scaling the business. Metrics like acquisition, activation, retention and referral are important to track progress. The goal is to spend money efficiently by testing hypotheses through customer interaction and validated learning.
I Realize Lean Startup Hack-nov2010
- 1. LEAN STARTUP AT THE GATE 17-11-2010
- 2. Map And the winner is... Customer Development Lean Startup
- 3. Map And the winner is... Customer Development Lean Startup
- 4. Nessuna vita è rovinata tranne quella la cui crescita si è arrestata Oscar Wilde Felix qui nihil debet Proverbio latino
- 5. Source: Wikipedia through CIA’ s World Factbook 2010
- 6. And the winner is... GROWTH in particular...
- 7. Job Growth in U.S. Driven Entirely by Startups, According to Kauffman Foundation Study The importance of Startups in Job Creation and Job Destruction www.kauffman.org
- 9. A startup is... ...a human institution designed to deliver a new product or service under conditions of extreme uncertainty Source: Eric Ries www.startuplessonslearned.com and... ...an organization formed to search for a repeatable and scalable business model. Source: Steve Blank http://steveblank.com
- 10. Startup Scalable Big Business >100M$ VC* Not Scalable Small Business <10M$ No VC* *Venture Capital
- 11. Investment Web based Start-ups Semiconductors, Pharma, etc. 20K! 1M! - + Barriers to entry100 10 - Same Risk? Same ROI? Trends...
- 12. Investment Web based Start-ups Semiconductors, Pharma, etc. 20K! 1M! - + Barriers to entry100 10 - Same Risk? Same ROI? Trends... ...but too many fail!!
- 13. ...most startups fail from a lack of customers than from a failure of product development... Source: Steve Blank - http://steveblank.com/
- 14. Map And the winner is... Customer Development Lean Startup
- 15. Source: Steve Blank - http://steveblank.com/ FROM... Concept/ Bus. Plan Product Dev. Alpha/Beta Test Launch/ 1st Ship PRODUCT DEVELOPMENT TO... Company Building Customer Discovery Customer Validation Customer Creation CUSTOMER DEVELOPMENT Product/Market FIT PIVOT
- 16. Customer development is a 4 step framework to: Discover and validate the market for your product, build product features that solve customer's needs, test the correct method for acquiring and converting customers, deploy the right resources to scale the business.
- 17. During your customer development process DO NOT FORGET:
- 18. 1) Discover your MARKET TYPE If you are introducing a new product you can choose: to enter an existing market to introduce a new product into a new market to re-segment an existing market
- 19. 1) Discover your MARKET TYPE If you are introducing a new product you can choose: to enter an existing market to introduce a new product into a new market to re-segment an existing market requires millions of marketing dollars
- 20. 1) Discover your MARKET TYPE If you are introducing a new product you can choose: to enter an existing market to introduce a new product into a new market to re-segment an existing market Even if you think that you are launching a new product into a new market, most likely you are re-segmenting a market requires millions of marketing dollars
- 21. SEGMENTATION - the practice of breaking down a large market into a smaller groups of users who share specific needs/interests and who reference each others. Segmentation allows you to: learn faster about market fit, find an unoccupied segment, become market leader, focus existing resources. 2) Pay attention to SEGMENTATION
- 22. 3) Try to find your EARLY ADOPTERS... They are important because: they seek out a new technology to solve their real problems, they want you to be successful, they enjoy opportunities that allow them to be heroes. EARLY ADOPTERS - passionate, early users of new technology or products who understand its value before mainstream market. Source: E. M. Rogers - “Diffusion of Innovation”
- 23. 4) Hack your business model
- 24. 4) Hack your business model Alexander Osterwalder Business model tool www.alexosterwalder.com
- 25. Map And the winner is... Customer Development Lean Startup
- 26. Source: Eric Ries - www.startuplessonslearned.com LEAN STARTUP Product Development at Lean Startup Unit of Progress: Validated Learning About Customers ($$$) Problem: unknown Solution: unknown Customer Development Hypotheses, Experiments, Insights Data, Feedback, Insights A s t a r t u p w h i c h c o m b i n e s i t e r at i v e development methodologies with customer development
- 27. Validate your core hypothesis Customer Problem Solution By Developing the MVP By Pivoting The process
- 28. Validate your core hypothesis Customer Problem Solution By Developing the MVP By Pivoting The process Achieve Product/Market Fit
- 29. Validate your core hypothesis Customer Problem Solution By Developing the MVP By Pivoting The process Produce a development and marketing roadmap for SCALING Achieve Product/Market Fit
- 30. C.P.S. - Customer Problem Solution You must understand and describe the problem you are solving from the customers perspective. Useful questions: who has the problem ? what problem are you trying to solve ? How are you solving the problem ? How is the person dealing with the problem now ? How is your solution better ? Witch benefits does the user get by using your solution ?
- 31. C.P.S. - Customer Problem Solution Write specific assumptions. It is better to be wrong than vague. if you are wrong you iterate. If you are vague you have wasted your time.
- 32. A product with the fewest number of features needed to achieve a specific objective and that people are willing to pay for (or they are very disappointed without this product). MVP Minimum Viable Product
- 33. Pivot means to change an element in your customer-problem-solution hypothesis or business model BUT DON'T ABANDON WHAT YOU'VE LEARNED (AND YOUR CORE ASSETS). The sooner you realize an HP is wrong THE FASTER YOU CAN UPDATE IT. PIVOT
- 34. Are you on the right way ??? Business plan and market report will show you the way
- 35. Are you on the right way ??? Business plan and market report will show you the way
- 36. Are you on the right way ??? Metrics will show you the way... Business plan and market report will show you the way
- 37. “Our” favorite set of metrics METRICS DESIRED RESPONSE from users Acquisition clicks links Activation download/play Retention signup Revenue personalized easy purchased Referral mentions
- 38. “Our” favorite set of metrics METRICS DESIRED RESPONSE from users Acquisition clicks links Activation download/play Retention signup Revenue personalized easy purchased Referral mentions Dave McClure Startup Metrics for Pirates
- 39. Requires 3 criteria be satisfied: 1. the customer is willing to pay for the product, 2. the cost of acquiring a new customer is less then what they pay for the product, 3. there is sufficient evidence indicating the market is large enough to support the business. ALL BUSINESS MUST HAVE A PRODUCT MARKET FIT MILESTONE PRODUCT/MARKET FIT
- 40. Finally you have to scale... MVP Product Market Fit from startup to large company (Startups don't last forever) VC Boost Focus on: positioning customer acquisition hiring marketing
- 41. Finally you have to scale... MVP Product Market Fit from startup to large company (Startups don't last forever) VC Boost Focus on: positioning customer acquisition hiring marketing
- 42. Lean Startup: IS NOT about spending/raising less money, IT IS about spending/raising money more efficiently IS NOT just for web / tech startups, IT IS for any company working on innovation IS NOT about replacing vision with feedback/data, IT IS about making sure you have the right vision Lean Startup encourage to be honest with yourself !!! Myths about Lean Startup
- 43. THANKS