introduction to lean startup - dec 2013
DESCRIPTION
A short introduction to the concepts of Lean Startup, presented as an introduction during the Asheville Lean Startup Conference Livestream.TRANSCRIPT
Introduction to Lean Startup
by Trevor Lohrbeer
@FastFedora
FastFedora.com
@LeanDecisions
LeanDecisions.com
What is Lean Startup?
A scientific approach to
creating a new product or service
in conditions of high uncertainty
Why Use Lean Startup?
1. Lower Your Market Risk
2. Use Less Capital
3. Increase Your Agility
Traditional Product Development
Generate Idea
Build Product
Create Download Form
Learn What Customers Want
Getting Lean
Generate Idea
Create Download Form
Learn What Customers Want
Generate Idea
Create Download Form
Learn What Customers Want
Build Product
Run a Smoke Test Build a Minimum Viable Product
Reduces time to feedback Enables faster course corrections Minimizes capital spent developing unwanted
features / products
Customer Development1. Customer Discovery
Achieve Problem/Solution Fit
2. Customer ValidationAchieve Product/Market Fit
3. Customer CreationDrive Demand
4. Company BuildingScale the Company
Minimum Viable Product (MVP)
The simplest product or service
that provides value to a customer
Old Way Research the market Build the entire
product or service Launch Find out if you can
sell it
New Way Build a minimum
product or service Attempt to sell it Iterate based on what
you learned
Example: MVP
Validated Learning
Old Way Do something Debrief Invent reasons for
results “Lesson Learned”
(but not really)
New Way Make a hypothesis Create experiment Run experiment Analyze results Hypothesis either
validated or not Lesson only learned
once validated
The Build-Measure-Learn Loop
Measure
Learn Build
ProductData
Ideas
Split Tests
Do you want more readers?
Metrics
VanitySound awesome, but usually meaningless. Often up and to the right.
# CustomersRevenue# Page Views
ActionableTies specific and repeatable actions to observed results.
Conversion RateCost of AcquisitionChurn Rate
CohortsMonth 1 Month 2 Month 3 Month 4 Month 5 Month 6
Joined Month 1
100% 10% 8% 5% 3% 2%
Joined Month 2
100% 13% 10% 8% 7% ?
Joined Month 3
100% 18% 14% 12% ?
Joined Month 4
100% 19% 17% ?
Joined Month 5
100% 25% ?
Joined Month 6
100% ?
Product/Market Fit
When you have a product that you can consistently and repeatedly sell to a specific market.
Signs of Product/Market Fit
When you have a block of customers with:Similar Usage & ResultsRepeatable Buying PatternsFew Customization Needs
The Pivot
A structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.
* Requires validated learning
Other Terminology Iterative Releases Continuous Deployment Business Model Canvas Get Out of the Building (GOOTB) Innovation Accounting
Questions?
Trevor Lohrbeer
@FastFedora
FastFedora.com
@LeanDecisions
LeanDecisions.com