Lean startup simplified for learners, entrepreneurs & practitioners

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THE LEAN STARTUP simplified for learners & entrepreneurs

Abhishek BallabhLean - Practitioner

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Its a Movement

A SET OF PRACTICES TO HELP STARTUPS SUCCEED

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The Players

PEOPLE WHO HAVE PIONEERED THIS THOUGHT PROCESS

Eruc Ries is largely credited with coining the term “Lean Startup”. He was inspired by the principles underlying Lean Manufacturing to reduce waste in the process of starting up a business. His new book was just released

Eruc Ries is largely credited with coining the term “Lean Startup”. He was inspired by the principles underlying Lean Manufacturing to reduce waste in the process of starting up a business. His new book was just released

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Steve Blank is one of the guys who first started openly questioning the traditional product-driven startup cycle and advocates for a customer-driven cycle he calls “customer development”. His book is often credited with starting it all.

Steve Blank is one of the guys who first started openly questioning the traditional product-driven startup cycle and advocates for a customer-driven cycle he calls “customer development”. His book is often credited with starting it all.

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Brant Cooper is a serial entrepreneur who wrote a book about the customer development cycle introduced by Steve Blank. Think of it as a short version of “The Four Steps to the Epiphany”

Brant Cooper is a serial entrepreneur who wrote a book about the customer development cycle introduced by Steve Blank. Think of it as a short version of “The Four Steps to the Epiphany”

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Ash Maurya is a Lean Startup practitioner who created a popular blog highlighting lean in action. He subsequently created the Lean Canvas (an approach to visualizing business models) and published Running Lean

Ash Maurya is a Lean Startup practitioner who created a popular blog highlighting lean in action. He subsequently created the Lean Canvas (an approach to visualizing business models) and published Running Lean

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Video #1

Eric Ries tells us a story about a startup that was not lean

http://www.youtube.com/watch?v=PXUd7wXrb0Q 8

Video #2

Steve Blank gets us pumped up about testing hypotheses and talking to customers really fasthttp://www.youtube.com/watch?v=_w-NUOjwMto

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70%10 % earn money

fail>

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WHY?

Startups don’t build what customers REALLY want.

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More startups Fail from a lack of customers than from a failure of product development.

FAILURE?

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LEAN STARTUPA SET OF PRACTICES TO HELP STARTUPS SUCCEED

@ERICRIES (entrepreneur IMVU, StartupsLessonsLearned.com)@SGBLANK (Standford, Wrote a book about customer development)

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WHAT IS A STARTUP?

a human institution designed to deliver a product or serviceunder extreme uncertaintyexperiment

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A startup is the organization used to search for a scalable business model

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STARTUP TRANSITION Large Company

- Business model found- Reached Product Market fit- Repeatable sales model found

- Business model found- Reached Product Market fit- Repeatable sales model found

Search forBusiness Model

The execution of theBusiness Model

LIFECYCLE?

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LEAN STARTUPassumes customer andproduct is unknown

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TEST HYPOTHESES

TEST HYPOTHESES

CHARGEMONEY

CHARGEMONEY

STARTSALESSTARTSALES SCALESCALE

CUSTOMER DEVELOPMENT

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AGILE DEVELOPMENT

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2121

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13 LEAN STARTUP factsdos

donts

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#1 FORGET WATERFALL

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#2 LEAN STARTUP TEAM

PROBLEM TEAMPROBLEM TEAM

SOLUTION TEAMSOLUTION TEAM

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MVPTEST YOUR ASSUMPTIONS

#3 MINIMUM VIABLE PRODUCT

BUILD A MVP IN A WEEKEND

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MVP: CURIOUS CASE OF DROPBOX

3MINVIDEO ON HACKER NEWS

+ A EMAIL SIGNUP FORM

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ELIMINATEELIMINATE

#4 LESS FEATURES

DO WE REALLY SOLVE A PROBLEM?

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FEEDBACK

VISIONARY CUSTOMERS TELL YOU WHAT FEATURES ARE MISSING

#5 EARLYEVANGELISTS

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ITERATEITERATE

#6 CONTINOUS INTEGRATION

FAST

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PIVOTGET CLOSER TO PRODUCT MARKET FIT ASAP

A COMPANY HAS PRODUCT MARKET FIT WHEN IT HAS FOUND A PRODUCT THAT CUSTOMERS REALLY WANT.

#7 PRODUCT MARKET FIT

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MEASURE PMFASK YOUR CUSTOMERS

“WOULD YOU BE SAD IF THE PRODUCTWILL NO LONGER EXIST?”

HOW MANY CHOOSE VERY DISAPPOINTED?

<25% 25-39% >40%

PRODUCT MARKET FIT

your productsucks

ok, you may pivota little

it’s time forscale up

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PIVOT

http://www.businessmodelgeneration.com/

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FROM DAY 1

PEOPLE PAY IF THEY CAN SOLVE A REAL PROBLEM

#8 CHARGE

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#9 AAARR

@davemclurehttp://500hats.typepad.com/500blogs/2007/09/startup-metrics.html

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#10 SPLIT TESTING

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#11 FIX PROBLEMS

MAKE ONE ERRORONLY ONCE!

ASK WHY 5 TIMES.http://en.wikipedia.org/wiki/5_Whyshttp://www.startuplessonslearned.com/2009/07/how-to-conduct-five-whys-root-cause.html

#12 RESOURCES

• http://www.startuplessonslearned.com

• http://steveblank.com/

• https://www.socrated.com/user_courses/226

• http://leanstartup.pbworks.com

• http://www.slideshare.net/search/slideshow?

q=leanstartup

• http://www.google.ch/#hl=en&q=leanstartup

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STOPCREATING PRODUCTS PEOPLE DON’T WANT!

#13 BE SUCCESSFUL

LISTEN!SOLVE A PAIN!DO IT LEAN! -> Customer Development -> Agile Product Development

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THX

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Question for you

• IS YOUR STARTUP LEAN?

• DOES IT WORK FOR YOU?

• WHAT DO YOU THINK?

• WHAT IS YOUR EXPERIENCE?

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References

• http://www.amazon.com/Four-Steps-Epiphany-

Steve-Blank/dp/0989200507

• http://www.amazon.in/The-Lean-Startup-

Innovation-Successful/dp/0670921602?

tag=googinhydr5608-21

• http://www.amazon.com/Running-Lean-Iterate-

Works-Series/dp/1449305172