Start-Up: A temporary organization designed to search for a repeatable & scalable business model under conditions of extreme uncertainty Goal: To figure out the right thing to build, the thing customers want & will pay for, as quickly as possible before running out of resources. !
1. START-UP 2. BIG BUSINESS
! Looking for a Executing a business model business model
“Planning comes before the plan�
A week in the life of an entrepreneur
It may seem counterintuitive to think that something as disruptive, innovative & chaotic as a startup can be managed, or to be accurate, must be managed.
Most start-ups than from a failure of product development. They simply did not find enough customers to pay them enough $.
$
#" !
76"5 43 321 * *
&- , /. -, * * * *
! 0 L J ; */+N W $. !0/!#3. ]2 J F m .-MJ7 Hn 3 &* N < n 3 2p N < oC n 3 < , O n 3
( ' (+ * * * *
( ' " * * * *
) ( ' &% * * * *
$* E 0 . MJ7 1`# * ;MO O ?( !" .F/" ) ;MO J7F ; " 0 ) ;MO ba E DN DJ* % 47 E JO %4D*
. MJO ! /+. J + #J ; X7 . MJO !4$. F W $. 4D' . MJ7 Y0 ED ! /+. 4 D# ) /@ . MJO !7 ?VZ W $. ) C $
0 L J ; */+# K4J7 !?4I#* ) ?4I# */ &*8 # ) ; MJO " N ;M7 E=/
& % $# " ! .- !" , +* ) ( '
< N a /@ < P = 9/7 3 < @V 9/7 3 < SA J. 4c F H) OJ# < . dD R ) /@
< ]*1 ED'" , ! 8 .Z < [ @# UE*/O# < 47 6 < \ /$ < [2 @ < 91^( ^@ E 4+N < % ^D# E 4+N < 1^O3 < !4+\ * ^ # MO < J # H, /@# : 4" ;U_3 # < W P 4" ;
H) D?VU) < 4LO U 4D' ET < S #.R 5 Q P
5) 4 3 21 &0 / < 0 08 91( @ ?3. >6= < * #;: 9 + 9 *8 47 6 H 7 9 6D" GF ED'" 9/*/C B47 A $# :
( ' ? > * *
0 $+ * * * * *
4J7 0 0 L J ; */+# " 4I O ?( ) 1*R MJO & ) ;MO EP # ) ;
!O E O#. F 2MJ7 EL6* 9 ; F WM= $ 2MJ7 & EP #. 9 ; F X7 64#@ KN ; E D#N %
5 . H * < * " < { Z HH d= 9 1" z * N M7 5 *1D0 < 3$
h F ) + EL0F h * #; ) + l/CF 5) + , /@# ET 1 N /= N # J" %*1O#4 ) + , /@# DJ* % 5%*1O# He^ ) + K4N X7 0 L J ; +N 2MJ7 DJN DJ* % 5 +# Hf^ 4L6* A h T " 2MJ7 , +* % 5& ? Hg^ 2MJO 0 L #J ; W ^ *j" , +. % 5E P # Hi^ & ? /O" 4T1 7 _0 #" , +. % 5& ? /O" Hk^
BA@ ? >= * * * * *
!4" + 2MJ7 &0/ ! /+ J + h T O0/* A B47 h T O0/* % DN F &0/ 4J7 4L6* % 4 D /2 O JCZ ED'* ./2 7 /2 7 / E T
< ;: 9(8 * * *
$"1 CA J. 0 % D# F 0 64DN B47 0 64DN B47 ) ( '
5 . Hn 34 1 &s O I < `$ 1=r q 17 < q 6# 5 D * 9_O3N He^ < $* O ?( B47 /J#O _O3# < O F J2 ; 5 ?N \ 9_O3N Hf^ H JD B47 /J#O _O3# < t# * p B47 /J#O _O3# H * 7 < ( < [ =1N < q 1;ZU_CuN < dV 64DN < , /@# 64DN 5EP & " Hg^
gwx ; /PR Ec " ' % v B Z ?3 7 /": ' =1" [=1 EJO a 5 # y" 1 B47 [ =d @3. * 7
" $# "!
!!)*+,!&'#(!!"#$%
Asmaa
Lean Canvas
Day 1
Untested Hypotheses
1. Organise our thinking
3. Turn hypotheses into facts
2. Get out of the building
4. Update canvas & becomes scorecard
The Different Worldviews of a Startup:
Entrepreneurs
Customers
Investors
Advisors
Minimize TOTAL time through the loop
! "#$%&!'()*&!+#,#$!
'))*%!-.!+/0%! Example of an Experiment Report
B U I L D
!
HereĘźs what we thought
" # $% &
'( ) !
HereĘźs what we did !!
* # " ( "
HereĘźs what we found
MEASURE
+ ,-.
LEARN / "
0
HereĘźs what we are going to do next
! "#$%&!'()*&!+#,#$!
TIMELINE & EXPECTATIONS
'))*%!-.!+/0%!
START FROM: Validating Problem / Customer Hypothesis
GET OUT OF THE BUILDING
YES
NO
Create Solutions & Unique Value Proposition
Talk to more customers or another customer segment
MINIMUM VIABLE PRODUCT
PIVOT
PERSEVERE SHARE:
EACH WEEK: Build – Measure – Learn
• • • • •
Hypothesis: Hereʼs what we thought Experiments: So hereʼs what we did Results: So hereʼs what we found Iterate: So hereʼs what we are going to do next Update Lean Canvas
2nd – 8th Mar 2014
8th – 15th Feb 2014 • • •
• Prepare updated Lean Canvas Send invitations to mentor & PwC on LeanStack Identify potential Problem & Customer Segment •
16th – 22nd Feb 2014 • •
Talk to 10 potential customers Validate Problem & Customer hypotheses
23rd – 1st Mar 2014 • • • 1! !
Identify potential UVP / Solution based on validated Problem / Customer hypotheses Talk to another 10 – 15 potential customers Validate UVP / Solution hypotheses (incl. features for MVP)
•
Based on customer insight, decide to pivot / persevere Talk to another 10 potential customers and/or channel partners Identify basic revenue model strategy & how to reach customers
9th – 15th Mar 2014
• •
Understand basic fixed & variable costs involved List key activities that need to be tracked
16th – 23rd Mar 2014
• Understand an unfair advantage that cannot be easily copied or bought by potential competitors
1. Lean Startup doesn't guarantee success of your otherwise risky venture.
3. The biggest thing I would add is dealing with failure. Both on the fear of failing end (to begin with) & on the shit it's all failing end (I’m a failure).
2. When things are NOT working & NOT getting traction, is this because you’re doing it wrong or just not working at it hard enough? Are you quitting because you don't like a bit of pain or are you quitting because this is the right time to quit?
4. When certain key things haven’t worked out, I started to withdraw & stopped talking to advisers & meeting people & getting as much support, right when I really should have gotten more.
5. My advice is Lean Startup tried to take a scientific type approach. Keep treating yourself as a scientist testing the idea. Your learning journey is the core asset.