Lean Startups - a Method to successfully build your business 1
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Lean Startups - a Method to successfully build your business 1
MY TWO MANTRA’S IN BUILDING A COMPANY
Da Vinci Code Building a Business is like sailing a Sail boat
2
LEAN STARTUP METHODOLOGY
Why Lean Startup
Businesses tend to fail because you either run out of time or money.
With unlimited time and unlimited money, all business have 100% ability to exceed
Success is achieved as long as you can figure out the model before you run out of time or money
Key Steps in Building your Business
Document your Plan A
Identify the Riskiest Parts of Your Plan
Systematically Test Your Plan
3
DOCUMENT YOUR PLAN A
Step 1 to start you business:
A strong initial vision
a ‘Plan A’ for executing against the vision
BUT....... Most Plan A’s don’t work!
The Lean StartUp
Uphold the strong vision with facts, not faith
It’s built on untested assumptions
Critical Success Factor - Test and refine the vision
4
STEP 1: WRITE IT DOWN ON 1 PAGE
5
Top 3Problems
Top 3features
Key activitiesyou measure
Simple, clear, compelling message that states why you are different and worth buying
Path to Customers
Can’t be easily copied or bought
Target Customers
Customer Acquisition CostsDistributing CostsHosting, People, etc.
Revenue ModelLifetime ValueRevenueGross Margin
PRODUCT MARKET
PRODUCT VS. WHOLE PRODUCT
6
Top 3Problems
Top 3features
Key activitiesyou measure
Simple, clear, compelling message that states why you are different and worth buying
Path to Customers
Can’t be easily copied or bought
Target Customers
Customer Acquisition CostsDistributing CostsHosting, People, etc.
Revenue ModelLifetime ValueRevenueGross Margin
PRODUCT MARKET
WHOLE
PRODUCT
THE PROBLEM - CUSTOMER SEGMENT
7
Top 3Problems
Top 3features
Key activitiesyou measure
Simple, clear, compelling message that states why you are different and worth buying
Path to Customers
Can’t be easily copied or bought
Target Customers
Customer Acquisition CostsDistributing CostsHosting, People, etc.
Revenue ModelLifetime ValueRevenueGross Margin
PRODUCT MARKET
WHOLE
PRODUCT
1 2
THE PROBLEM - CUSTOMER SEGMENT
8
Top 3Problems
Top 3features
Key activitiesyou measure
Simple, clear, compelling message that states why you are different and worth buying
Path to Customers
Can’t be easily copied or bought
Target Customers
Customer Acquisition CostsDistributing CostsHosting, People, etc.
Revenue ModelLifetime ValueRevenueGross Margin
PRODUCT MARKET
WHOLE
PRODUCT
3One of Most ImportantHardest to Get rightWhy you are different and worth getting attention
Be different, but make sure your difference mattersTarget early adoptersFocus on “finished story” benefits
THE PROBLEM - CUSTOMER SEGMENT
9
Top 3Problems
Top 3features
Key activitiesyou measure
Simple, clear, compelling message that states why you are different and worth buying
Path to Customers
Can’t be easily copied or bought
Target Customers
Customer Acquisition CostsDistributing CostsHosting, People, etc.
Revenue ModelLifetime ValueRevenueGross Margin
PRODUCT MARKET
WHOLE
PRODUCT
4 5
THE PROBLEM - CUSTOMER SEGMENT
10
Top 3Problems
Top 3features
Key activitiesyou measure
Simple, clear, compelling message that states why you are different and worth buying
Path to Customers
Can’t be easily copied or bought
Target Customers
Customer Acquisition CostsDistributing CostsHosting, People, etc.
Revenue ModelLifetime ValueRevenueGross Margin
PRODUCT MARKET
WHOLE
PRODUCT
678 9
Now What? Step 2: Identify Risks
With Plan A, you are now at the start line of the marathon 11
WHAT ARE RISKS?
Uncertainty = Risk
12
Uncertainty: The lack of complete certainty. i.e. the existence of more than one possibility.
An unknown
/Risk: A state of uncertainty where some of the possibilities involve a loss, catastrophe, or other undesirable outcome.
The list of possible reasons your company won’t exist in 5 years.
Three Kinds of Risk
Product Risk - Getting the Product Right
Customer Risk - Building a Path to Customers
Market Risk - Building a Viable Business
PRIORITIZE THE RISKS & GO THRU THEM SYSTEMATICALLY
Customer Pain Level (Problem)
Key Customer segments that need product most (highest pain)
Ease of Reach (Channels)
Sales Go To Market is one of hardest parts of the “Whole Product”
Price/Gross Margin (Revenue Streams/Cost Structure)
The math has to work!
Market Size (Customer Segments)
The Customer Segment needs to be big enough (example: The $1 Billion Rule)
Technical feasibility (Solution)
Is our solution feasible?
AND OF COURSE, Team
13
Step 3: Get Ready to Experiment
14Startup = Experiment
BUILD MEASURE LEARN
15
Implement
BUILD MEASURE LEARN WITH SPEED LEARNING FOCUS
Speed: Cycle Time - how quickly you can complete a loop of “Build, Measure & Learn”
Learning - Learning about customers thru measurement
Focus - what is your specific idea
Not enough of any one can cause failure:
Lack of Speed - run out of $ or competitor beats you
Lack of Learning - you’re a dog chasing your tail
Lack of Focus - premature optimization trap (example: scaling servers with no customers or optimizing web page with no product)
16
Implement
NUMBER 1 SKILL: INTERVIEW CUSTOMERS
17
The PROBLEM Interview
Understand your customer’s world before you build a solution
Product Risk - What are we solving (Problem): How do they rank the top three problems?
Market Risk - Who is the competition: How do they solve these problems today
Customer Risk - Who has the pain: Is this a viable customer segment
The SOLUTION Interview
Test the solution with a ‘demo’ before building the actual product
Customer Risk - Who has the pain: Who are my early adopters?
Product Risk - How will you solve these problems: What are the minimum features needed to launch?
Market Risk - Pricing Model: Will customers pay for a solution and what price will they bear?
Get to Release 1.0 of your Company
18Our objective is maximizing learning (about customers) per unit time.
MVP - MINIMUM VIABLE PRODUCT
Once you define what the problem worth solving is:
Something customers want, they will pay for, and it can be solved
Define the MINIMUM feature set to address these problems. This is your MINIMUM FEATURE SET and is the initial product you will build.
The MVP is not half-baked or a buggy product. It addresses not only the TOP PROBLEMS but also the problems worth solving.
It should deliver enough value to justify charging a customer.
Reduce your MVP
Once you define your product, go thru a detailed analytical exercise to reduce it. Take each Unique Value Prop, eliminate nice-to-haves and don’t needs for each.
Focus on learning, not optimization
Little mice in the background is absolutely key!
19
Next Step Marketing
Attend the Lean Marketing Session on Saturday, October 27, 2012 20
Presented by: Nathan Monk (‘Digital Cowboy’)
Bio:
•Mars ICE advisory team member with focus on consumer ent. & ecommerce companies•Have a strong passion for entrepreneurship •‘Lean Startup’ practitioner•Digital marketer, sales and BD professional•Experience: CBC, CanWest, OgilvyOne and Yahoo!
Follow Nathan:
@Cowboytweets
Linkedin.com/in/nathanmonk
marsdd.com/blog/author/nmonk/feed/
Questions?
21
Related Documents
