lean launchpad e@ubc lessons learned presented at ihub nairobi 2014.08.12
TRANSCRIPT
Lessons Learned
Lean LaunchPad (LLP) Accelerator Program
@iainveriginAugust 2014
I’m in Kenya with
UBC Sauder Social Entrepreneurship
@UBC_SSEestablished 2006
Kibera, Mathare, and Mathare
Who Are You?
• iHub Startups• UBC SSE Kids• Local Entrepreneurs• Local University Students • Mentors• iHub Staff
LLP & Customer Development @ UBC
• 2008 - 12 MBA Customer Development, Iain Verigin
• 2012 Q2 LLP pilot, 5 Teams, Iain Verigin
• 2012 Q3 LLP educator workshop 2012, Paul Cubbon
• 2013 Q1 large scale LLP, 10 teams, Iain & Paul
• 2013 Q2 LLP Genomics, 5 Teams, Iain
• 2013 Q4 LLP, 10 teams, Paul + Blair Simonite
• 2014 1Q LLP Genomics, 5 teams, Iain
• 2014 1Q LLP, 10 Teams, Paul & Blair
• 2014 2Q LLP Genomics, 5 Teams, Iain
• 2014 2Q LLP, 10 Teams, Blair & Liz Newton8 LLP Workshops
What is LLP allAbout?
“A Startup is a temporary organization in search of a scaleable, repeatable,
and profitable business model” – Steve Blank
Most Startups fail from lack of customers … not lack of
product– Steve Blank
LLP is a rigorous search for customers and business models
(it requires the Primary Investigator(s) to be directly involved )http://vimeo.com/79755368
To Create a Customer
Drucker says …
“There is only one valid definition of business purpose: …”
Page 20 “The Essential Drucker”
How Does LLP Fit With Traditional Business School
Curriculum?
It is “Complementary”which means “It’s totally different”
source: Steve Blank
More Detailwrt/
Lean LaunchPad
May 2013 HBR
http://steveblank.com/2013/05/06/free-reprints-of-why-the-lean-startup-changes-everything/
LLP Life Sciences 2013(Steve Blank)
• Introduction — Reinventing Life Science Startups– 2013/08/19 Therapeutics and Diagnostics
– 2013/08/20 Medical Devices and Digital Health
– 2013/08/21 Evidence-based Entrepreneurship
• Lessons Learned - LLP for Life Science– 2013/10/11 This Will Save Us Years
– 2013/11/04 Value Proposition and Customers• Insights Video - Customer Segments - differences between Therapeutics, Digital Health, Medical Devices, & Diagnositics.
– 2013/11/13 Well They “Should” be Our Customers
– 2013/11/11 Distribution Channels• Insights Video - Channels
– 2013/11/18 Revenue Streams• Insights Video - Revenue Streams
– 2013/12/02 When Customers Make You Smarter
All links are from www.steveblank.com
What Does Search Look Like?
Execution Looks Like This
Bill Buxton, “Sketching User Experience”
Search Looks Like This
Bill Buxton, “Sketching User Experience”
What Are We “Really” Gonna
Do?
What Are We “Really” Gonna Do?
• In Class– 8 * “Iain” Presentations
• Process, Theory, Personal Skills
– 4 * “You” Project Update Presentations
• TAM/SAM, Canvas, Experiments, #Calls
How the Class Works
- The “Real Work” is outside the class.- Class is ~25% of time required.
What is Under the Hood?
Theory & Models
Customer Development
Steve Blank
The Business Model Canvas
Design & Test
CustomerDiscovery
CustomerValidation
CustomerCreation
ScaleCompany
Customer Discovery
• Stop selling, start listening– There are no facts inside your building, so get outside
• Test your hypotheses – Two are fundamental: problem and product concept– Problem Hypothesis & Solution Hypothesis
Customer Discovery: Rules
• Rule 1: Facts are outside the building, opinions are inside.
• Rule 2: Solve a problem that customers say is important and valuable
• Rule 3: Does the product concept solve that
problem?
Customer Discovery: Exit Criteria
• What are your customers top problems? – How much will they pay to solve them
• Does your product concept solve them? – Do customers agree?
– How much will they pay
• Can you draw a day-in-the-life of a customer – before & after your product
• Can you draw the org chart of users & buyers
Your Work?
In a Nutshell
• Sketch -- What You Know.
• Determine What You Need to Learn About.
• Design “People” Experiments to help you learn.
• Test -- Do the Experiments.
• Synthesize
• Repeat…. Repeat … Repeat
TEAM NAME HERE
Who are our most important
customers?
What are their archetypes?
What Job do they want us to get done for them?
What Key Activities do we
require?Manufacturing?
Software? Supply chain?
Which of our customer’s
problems are we helping to solve?
Which customer needs are we
satisfying
What are the Key Features of our
product that match customers
problem/need?
Who are our Key Partners?
Who are our key suppliers?
What are we getting from them? Giving
them?
What are the most important costs inherent in our business model? Fixed? Variable? How do we make money? What’s the revenue
model? Pricing tactics?
Through which Channels do our
Customer Segments want to be reached?
What Key Resources we
require?Financial,
physical, IP, HR?
Sketch out your hypotheses
1
3
4 2How will we Get, Keep and Grow
Customers?
5
6 7
8
9
:Service Journey V0.1:
test
:Score Card: ( Hypothesis Summary)
Guess GuessGuess Guess Guess
GuessGuess
Guess Guess
Test & Synthesize – Outside Class
• Interview & Experiment on Customers & Prospects (10-15 / wk)
• Blog Your Progress
• Develop a Storyline (Narrative)
• Synthesize Your Results
• Revise Canvas & Plan – Repeat Steps
Keep Track
Week n
Week 1
Week 2
ProgramDetails?
What’s In It For You?
What you get• Guidance to tried and tested resources• Trained, experience instructors (coaches)• An industry mentor• Administrative support in the program• Opportunity to move towards being investor ready• Access to other e@ubc resources and support
What you commit to give (or……consequences….!)• Your time and commitment as a team to the process for 2 months• To read and prepare as directed• To get out of the building and undertake primary customer research• Commitment to blog progress regularly• A willingness to be open-minded!
is an entrepreneurial connected community
Examples&
Past Participants
Program Marketing
• Genomics UBC– Genomics Homepage
– Genomics Media Room
• Aspect (3D Bio Printing)– e@ubc - Aspect Biosystems
• General– What is Lean LaunchPad? (From Experience of Past Participants)
Lessons Learned &
Future Work
Lessons Learned
Teams that finish are much better prepared for the
startup journey
Lessons Learned
It’s way hardercomplicated,& different
than you thought
Lessons Learned
Source Austin Kleon
Lessons Learned
Source Austin Kleon YC’s Startup Curve is a Good Reminder, too
Lessons Learned
A third of the teams do NOT finish.
( Let them die. )
Lessons Learned - Synthesis
• We need Pre-LLP training– Most teams are not prepared for rigour and discipline of LLP
(never mind becoming a company)
• We need Post-LLP followup– startups take years not months.
• Startup Skills are different than Big Company – Most teams do not have personal skills required to perform
Customer Discovery
– Most mentors can’t help here (they are big company)
Solutions Being Tested
• Pre LLP– Office Hours Bi-Weekly ( industry Mentors )– e101 available for all UBC students– “Startup Weekend” at UBC Fall and Winter
Term• Post LLP
– “Informal Board” led by Team ( e@UBC )– Government Funding. – Office Hours Bi-Weekly
Solutions - Post LLP -- Informal Board & Mentoring
• Brad Feld’s Startup Boards is a great resource• Focus on non-financial mentors in early days
• The team needs to take charge and select it’s own mentors and informal board.
Solutions - Personal Skills Required
• Communicate• Listen• Help ( How to be of Service)
• Don’t Be an Asshole!• Be Remarkable!
-- I have a full presentation on this <smile>Dating Skills for Engineers
The End