With the Support of: www.depe.com @depeteam Antofagasta, Chile, May 2011 1 FAILURE DAY Class 2
Jan 12, 2015
With the Support of:
www.de-‐pe.com @depeteam
Antofagasta, Chile, May 2011
1
FAILURE DAY Class 2
INDEX • Intro • Failure in Chile • What is a Startup? • Why Most Startups Fail? • What is a Pivot? • Failure, Pivot & Success Stories • Summing Up • Teams
FAILURE IN CHILE Effects on Entrepreneurship
Failure • The Punishment Culture
Failure • Jesse’s blog: “He explained to me that the biggest impediment for entrepreneurs in Chile is the fact that Chilean culture harshly punishes failure in general. All the other Chileans in the room concurred…”
Failure • “…As I spoke more with this Chilean businessman, it became truly apparent how debilitaSng it would be for entrepreneurs to grow up in a society that punishes failure”.
Effects on Entrepreneurship • In Chile, what happens if we punish failure?
– We don’t share (fear) – Country in status quo -‐> zero innovaSon – We don’t learn – Cancer for Entrepreneurship
• AccepSng failure is an important characterisSc of any entrepreneur.
The Truth • Most successful startups and successful people were failures at one Sme. Failure is important learning process. The ability to accept failure is an important characterisSc of entrepreneurs.
WHAT IS A STARTUP? What kind of Startup are we?
Human institution designed to deliver a new product or service under conditions of extreme uncertainty.��� Eric Ries, Lean Startup (www.startuplessonslearned.com)
Why to build a startup? • Our goal is create an InsStuSon not just a product.
• TradiSonal Management tacScs fail. • Environment of extreme uncertainty. • Not just 2 people in a garage.
Different Types of Companies
Different Types of Companies
Different Types of Companies
SO, WHY STARTUPS FAIL?
More startups fail from a lack of customers than from a failure of product development. Steve Blank, Four Steps to the Epiphany (www.steveblank.com)
Different Types of Market
Why we fail? • Nobody knows what the market really needs.(we cant predict the future)
• Entrepreneurs usually build before test their Product/Business Model hypothesis. • Startups can fail from unproven assumpAons.
– We believe that advancing the plan is progress.
• You have to push your product out in order to be`er listen and learn from the market.
The class focuses on using Customer Discovery process to create products that fit with the market. DePe Team
Why we fail? • Mike Maples: “You Have to Be Willing to Throw it all away”. – InvesSng a months of Sme in an idea, it’s hard to let it go and move on to the next one.
– Be`er to push a minimal viable product out and validate your idea quickly – we’ll show you how to do this.
• Most successful startups and successful people were failures at one Sme. Failure is important learning process. -‐> Adapt and move forward (PIVOT)
THE PIVOT Build, Ship, Pivot, Repeat
The Pivot • Pivot is changing your business model (not just iteraSng on your product) – It’s the equivalent of taking a hit (no product
traction) and spinning (product pivot) to find another path to the goal (product market fit).
Defense Dribbling Score
The Pivot • Change of direcSons but stay grounded in what we have learned.
• If we speed up the Sme between iteraSons, we increase the chances of success.
Build
Measure Learn
What can we Pivot?
Some Pivot Examples • Product Pivot
DaSng Site
”Who is ho`er” site
Group SMS
Some Pivot Examples • Fuzhou HC Imp. & Exp.
1. Impo. Company based in Chile. a. High CompeSSon, No Partners, worthless revenue
model-‐> FIRST PIVOT / Product (Service).
2. Sourcing and Procurement Outsourcing Company based in Chile. a. No experSse, No partners, No Customer relaSonship,
No Channels -‐> SECOND PIVOT / Customer Segment.
Some Pivot Examples 3 Sales (Foreign Markets)
Outsourcing Company based in China. a. New target market, new
revenue model. b. Buyers and Sellers became
our customers.
4 Today’s PIVOT-‐> Sourcing and Procurement Outsourcing Company based in Chile. (yeah, same as I started)
GRACIAS! Preguntas?