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Lean Startup - Marcus Whitney
This document provides an overview of key concepts for startups such as market validation, customer development, lean startups, and business models. It discusses how market validation is used to determine if a target market is real and worthwhile. Customer development is presented as a process for achieving product-market fit. Lean startups are described as organizations that seek to discover working business models through continuous learning and validation. Business models are defined as how organizations create, deliver, and capture value. Practical frameworks are also introduced, such as the business model canvas, AARRR metrics, and data-driven philosophies.
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Lean Startup - Marcus Whitney
- 1. hi Thanks for comingto this session.
- 2. You Are Here •Interested in startups that create products • Interested in the concept of “lean startups” • Have been, currently are, or are thinking about founding a startup
- 3. I hope toget you here • Clear, high level understanding of Market Validation, Customer Development and The Lean Startup • Some level of understanding of how these benefit the creation of a successful product • Excited to look into these three models and try them out and see what works for you
- 4. Market Validation What doesthis mean to you?
- 5. What is MarketValidation? A process for determining whether or not your target market is: • Real • Worthy of your idea • Addressable
- 6. Really. What isMarket Validation? • Primary (Proprietary) Market Research 1. Face to Face Interviews 2. Phone Interviews 3. On Line Interviews / Surveys • Secondary Market Research – Analysts – Market Research
- 7. What does MarketValidation Teach Us? • What state is the market in? – Early adopter, early majority, late majority, laggards • What is the competition? – Actual competitors – Alternatives to a true solution • What are customers willing to pay? • How serious is the need? • What is the operational cost to adopting your proposed solution?
- 8. Takeaway: Market Validation ensuresthat you actually have an opportunity worth pursuing, and helps you understand what solution will actually capture that market opportunity.
- 9. Customer Development Whatdoes this mean to you?
- 10. What is CustomerDevelopment? A process for achieving product-market fit that helps you to definitively: • Define your customer • Define your market state • Define your go to market strategy • Ensure these definitions are all real
- 11. Customer Development: “The FourSteps To Epiphany” Achieve Achieve Market Fit Market Dominance
- 12. Really. What isCustomer Development? • Business Visionary (CEO) – Customer (Day to day user, Economic buyer, decision maker) – Problem / Solution • Scale of recognition (Latent or Active) – Impact of pain / Mission Critical? – How does the customer spend their day now? • Tech Co-Founder (CTO or Chief Maker) – Product (Features, Benefits, IP, TCO, Dependency Analysis)
- 13. Takeaway: Customer Development is a discipline for bringing a product to the market successfully in a startup.
- 14. Lean Startup What doesthis mean to you?
- 15. What is aLean Startup? A learning organization, seeking to discover a working business model
- 16. How does aLean Startup Work? The Lean Startup Loop
- 17.
- 18. Takeaway: A Lean Startupis a solution finding organization, who’s sole purpose is to validate a business model.
- 19. Business Model What doesthis mean to you?
- 20. What is aBusiness Model? A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, or other forms of value).
- 21.
- 22. Business Model Design+ Customer Development
- 23. Sounds Nice. Here’sReality • Startups are hard. It’s REALLY difficult to actually execute. Don’t ask me why. It just is. • You will be way better off if you are highly skilled and experienced in your endeavor than otherwise. • Building a quality team is key, and also hard. A-Level players with good chemistry have the best chance of winning.
- 24. More Reality • Youmay need money to achieve product-market fit. Raising money sucks for most of us, and has nothing to do with innovation or doing great work. • Competition validates your market, but can throw you off your path when you start losing deals to it. • Unless you have innovated before and gone through the pain of mistakes, you will likely make a lot of them.
- 25. How to dealwith reality • Lone founder is a tough road. Get a co-founder. • Get advisors and mentors. You have blind spots. • Get laser focused on a minimum viable product. (makes raising money easier when you have success, or maybe not necessary at all) • Make goals and measure everything. • Make sure you can’t not do the startup. It’s the only thing that will get you through.
- 26. Practical Application: • Finda balance of Market Validation & Customer Development that works for you. • Check yourself against your Business Model Canvas. • Try Squared Circle Agile for Product Development (I made this crap up). • Say AAARR! To Determine your MVP. (Acquisition, Activation, Retention, Referral & Revenue) • Be a Data Driven Founder.
- 27. Squared Circle Agile: “ThePerfect Square Has No Corners” Tao Te Ching 41
- 28. Product Market Validationas Metrics
- 29. AARRR Model (Viral,Sticky or Paid) http://500hats.typepad.com/500blogs/2010/01/startup-metrics-for-pirates-lean-startup-circle-jan-2010.html
- 30.
- 31. Data Driven StartupPhilosophy & Framework The point of testing is to prove or disprove assumptions quickly Optimize Your Startup for Learning not Data Checklist for Data Driven Startup: ★ Operating Dashboard ★ Conversion Funnel Analysis ★ Cohort Analysis http://www.slideshare.net/dcancel/data-drivenstartups
- 32. Data Driven OperatingDashboard http://www.slideshare.net/dcancel/data-drivenstartups
- 33. Data Driven ConversionFunnel http://www.slideshare.net/dcancel/data-drivenstartups
- 34. Data Driven CohortAnalysis http://www.slideshare.net/dcancel/data-drivenstartups
- 35. Helpful? Hope So. Discussion Time. @marcuswhitney