lean startup 101 - firmhouse

Don’t make your startup fail; Learn what Lean Startup is about

Getting real world data on what works, by running lean experiments fast.

“A startup is not a smaller version of a big organisation.”Steve Blank, author of Customer Development

“a human institution designed to create a new product or service under conditions of extreme uncertainty.”Eric Ries, author of The Lean Startup.

“Kill your darlings.”Janice Frasier, founder Luxr

“Your decisions are only as good as your information.”Salim Virani, co-author The Mom Test

………..

small

Fail

small

cheap

Fail

cheap

often

Fail

oftenFail

Let’s NOT do this.Invest a lot and fail.

How to? Minimize risks!

You can’t learn kung-fu by watching Bruce Lee movies…

A B

What you think reaching your goals looks like

A

B

What reaching your goals actually looks like

Build Measure Learn

Learn Build

Measure

Plan A assumptions

Build and test something Measure the outcomes Draw conclusions & act on it

Every loop consists of one or more experiments

Startups win because of their speed of experimentation and learning.

The four startup types.

Problem-centric

Problem

Segment

Product

Technology

Problem CentricScratch your own itch

Tech & solution are dictated by the problem and segment

Segment-centric.

Segment

Problem

Product

Technology

Segment CentricFocus on one group of people and build a business around that

Seek to understand the segment deeply

Tech-centric.

Technology

Problem

Segment

Product

Tech CentricTech in search of problem: The tech is there; how it can it help anyone?

Core of product is the technology needed to put in the market

Product-centric.

Technology

Product

Problem

Segment

Product CentricGenerated of some inspiration

This is the danger zone!

Purpose of a startup

Startups need to try things in the real world to be able to succeed

Startups are of temporary nature (turn them into a business!)

The purpose is to search for a validated business model

Seems like a bad idea

Great idea

SWEET SPOT

Every entrepreneur will face difficult challenges.

Challenging areas?

Enterprise software

Fintech

Digital health

Fintech

Capital requirements can lead to high barriers to entry

Lots of restrictions and regulations

It's about people's money

Digital Health

Complex business environment with ‘hidden’ industry practices

Lots of restrictions and regulations

Skewed markets, the one who benefits most isn't necessarily paying

Each geographical market has its own complexity

Costly and lengthy R&D cycles

Enterprise software

Data compliance

Really long sales cycles

Lot of features to build to meet the status quo

Strategyeats Lean Startup for breakfast.

Your decisions are only as good as your information.

When you wait too long to launch, you only learn a bit and by then it's too late.

Launch fast and improve in cycles.

When you launch fast, think in small bets, you can try many options in a short time frame.

A pivot is a change in direction without a change in vision.Eric Ries, author of The Lean Startup.

Take a look at your favourite startups starting point.It’s probably different than you think.

What did Lean Startup take from Lean?• Long term value over short term financial gain • Genchi Genbutsu • Hansei and Kaizen • Pull vs. Pull

Long-term value over short-term financial gain.This is called Innovation Accounting in Lean Startup.

Genchi GenbutsuGo and see for yourself to thoroughly understand the situation.

Hansei and KaizenRelentless reflection and continuous improvement.

Pull instead of Push.Avoid overproduction.

Work in small batches.Time not spent learning is waste.

We are standing on the shoulders of giantsBelow is a list of people we want to attribute to:

Source Institute: Salim Virani • Decision Hacks

Eric Ries • The Lean Startup

Patrick Vlaskovitch and Brant Cooper • The Lean Entrepreneur

Steve Blank • Customer Development

Thanks.

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