Startup toolsLuiz Borba - http://borba.blog.br - @luizborba

Startup history

1970-1995 1995-2000 2000-2011

Golden Age

dot.com bubble The new bubble

Lean Startups

2011-?

Golden Age (1970-1995)‣ Building a business‣ $ Millions to start (proprietary hw/sw)‣ Long product dev cycle (waterfall)‣ Thousands Customers‣ Liquidity=IPO‣ No repeatable methodology

dot.com bubble (1995-2001)‣ Flipping a business‣ 10's $ millions to start (get big fast)‣ Long product dev cycle‣ Millions of customers‣ no profits IPO‣ Repeatable methodology

Lean Startups (2001-2010)‣ < $500k to start‣ Short product dev cycle (agile development)‣ 10's millions customers‣ M&A (revenue & network of users)‣ Repeatable methodology

$41 millions

The new bubble (2010-????)‣ Flipping a built business?‣ Short product dev cycle (agile development)‣ 10's/100's millions customers‣ M&A & IPO‣ Repeatable methodology

Building a Business

Lean Thinking

Identify value from standpoint of the end customer

Map the value stream

Create flow by eliminating waste

Understand the customer demand

Pursue perfection

Customer DevelopmentThe search for the business model

The Search for a Business The Growth of a Business

‘Startup is an organization formed to search for a repeatable and scalable business model

- Steve Blank

Customer Discovery

Customer Discovery‣ Stop selling, start listening‣ Test your hypotheses‣ Continuous Discovery

Get out of the

building

Coming soon

Type of Market Changes Everything

• Market

• Market Size

• Cost of entry

• Launch type

• Competitive Barriers

• Positioning

• Sales

• Sales Model

• Margins

• Sales cycle

• Chasm width

• Customers

• Needs

• Adoption• Finance

• Ongoing Capital

• Time to profitability

Customer Validation

How to Validate?

Minimum Viable Product (MVP)

The minimum set of features needed to learn

from early adopters

The Pivot

Change directions but stay grounded in what

we've learned

‘A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.

- Eric Ries

The Lean Startup Principles‣ Entrepeneurs are everywhere‣ Entrepeneurship is management‣ Validated Learning‣ Innovation Accounting‣ Build-Measure-Learn

Traditional product developmentunit of progress: advance to next stage

Agile product developmentunit of progress: a line of working code

Product development at Lean Startupunit of progress: validated learning about customers ($$$)

The Loop

Minimize the total time through the loop

Build faster‣ Unit tests‣ Usability tests‣ Continuous

integration‣ Incremental

deployment‣ Free & open-source‣ Cloud computing

‣ Cluster immune system

‣ Just-in-time scalability

‣ Refactoring‣ Developer sandbox‣ Minimum viable

product

Measure faster‣ Split tests‣ Continuous

deployment‣ Usability tests‣ Real-time

monitoring & alerting‣ Customer liaison

‣ Funnel Analysis‣ Cohort Analysis‣ Net promoter score‣ Search engine

marketing‣ Predictive

monitoring

Split tests

if (setup_experiment(...) == CONTROL) { // new way} else { // old way}

Continuous deployment

Funnel analysis

Learn faster‣ Split tests‣ Customer

development‣ Five whys‣ Customer advisory

board‣ Falsifiable

hypotheses

‣ Product owner‣ Accountability‣ Customer archetypes‣ Cross-functional

teams‣ Semi-autonomous

teams‣ Smoke tests

Reality Checkhttp://slidesha.re/kexf1L

Q&A

Thank you