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Lean Startup Crash Course, Moldova Feb 18. 2017

These were the slides for the Lean Startup Crash Course as held in Moldova, courtesy of US Aid. To book the highly lauded and highly popular course for students, entrepreneurs and corporate employees, contact v@plusandersen.com

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Lean Startup Crash Course, Moldova Feb 18. 2017

  1. 1. LEAN STARTUP CRASH COURSE IHUB
 MOLDOVA, FEB 18. 2017
  2. 2. MORE VIDARANDERSEN.COM VIDAR ANDERSEN • STARTUP FOUNDER • EDUCATOR • INNOVATION ADVISOR FOUNDING PRINCIPAL +ANDERSEN & ASSOCIATES
  3. 3. +ANDERSEN 
 & ASSOCIATES INNOVATION & GROWTH THROUGH SCIENCE + ENTREPRENEURSHIP CONTACT
 YOU@PLUSANDERSEN.COM
  4. 4. OVERVIEW DOING LEAN RIGHT THE LEAN STARTUP = BUSINESS 
 MODEL 
 GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING 
 & MVP
  5. 5. 1. ARTICULATE YOUR HYPOTHESES (GUESSES ABOUT THE UNKNOWNS) USING THE BUSINESS MODEL CANVAS (BMC). 2. GET OUT OF THE BUILDING AND TEST THESE HYPOTHESES USING CUSTOMER DEVELOPMENT. 3. VALIDATE LEARNINGS BY BUILDING MINIMUM VIABLE PRODUCTS AND GETTING THEM IN FRONT OF CUSTOMERS. 4. ITERATE (SMALL VARIATION, NO REAL CHANGE IN BMC) OR PIVOT (SOMETHING CHANGED IN THE BMC) AS NEEDED. 5. BUILD - MEASURE - LEARN (AKA RINSE, LATHER, REPEAT - BECAUSE THIS IS AN ITERATIVE AND CONTINUOUS PROCESS - YOU HAVE TO GET OUT OF THE BUILDING MORE THAN ONCE!) THE LEAN STARTUP TL;DR
  6. 6. WHAT WE KNOW NOW THE STORY SO FAR…
  7. 7. STARTUPS ARE NOT SMALLER VERSIONS OF LARGER COMPANIES
  8. 8. A COMPANY IS A PERMANENT ORGANISATION DESIGNED TO EXECUTE A REPEATABLE AND SCALABLE BUSINESS MODEL IN A PREDICTABLE AND STABLE ENVIRONMENT
  9. 9. A STARTUP IS A TEMPORARY ORGANISATION DESIGNED TO SEARCH FOR A REPEATABLE AND SCALABLE BUSINESS MODEL IN AN ENVIRONMENT OF 
 EXTREME UNCERTAINTY
  10. 10. A STARTUP IS A TEMPORARY ORGANISATION DESIGNED TO SEARCH FOR A REPEATABLE AND SCALABLE BUSINESS MODEL IN AN ENVIRONMENT OF 
 EXTREME UNCERTAINTY
  11. 11. COMPANY LIFE-CYCLE SCALABLE
 STARTUP TRANSITION LARGE COMPANY SEARCH BUILD GROW • BUSINESS MODEL FOUND • PRODUCT-MARKET FIT • REPEATABLE SALES MODEL • MANAGERS HIRED • CASH-FLOW BREAK-EVEN • PROFITABLE • RAPID SCALE • NEW SENIOR MANAGEMENT • AROUND 150 PEOPLE
  12. 12. SEARCH BUSINESS MODEL GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING
  13. 13. EXECUTION LARGE COMPANY
  14. 14. WHAT WE KNOW NOW • STARTUPS ARE NOT SMALLER VERSIONS OF LARGER COMPANIES • STARTUP IS TEMPORARY ORG, IN SEARCH OF SCALABLE REPEATABLE BUSINESS MODEL • NO BUSINESS PLAN EVER SURVIVES FIRST CONTACT WITH CUSTOMERS • BUSINESS MODEL CANVAS INSTEAD OF BUSINESS PLANS • CUSTOMER DISCOVERY INSTEAD OF EXECUTION • AGILE ENGINEERING PROCESSES INSTEAD OF WATERFALL • MINIMUM VIABLE PRODUCT INSTEAD OF BETAS • BUILD - MEASURE - LEARN: ITERATION AND SPEED OF THE ESSENCE
  15. 15. WHAT IS A BUSINESS MODEL? BUSINESS MODEL GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING INTRODUCING THE BUSINESS MODEL CANVAS
  16. 16. www.udacity.com/overview/Course/ep245
  17. 17. www.udacity.com/overview/Course/ep245
  18. 18. www.udacity.com/overview/Course/ep245
  19. 19. https://www.youtube.com/watch?v=aN36EcTE54Q VALUE PROPOSITION CANVAS
  20. 20. EXERCISE EXISTING MODELMODEL A WELL KNOWN COMPANY USING THE BMC IT’S EXERCISE TIME
  21. 21. IT’S EXERCISE TIME
  22. 22. EXERCISE FILL OUT 
 FIRST BMCUSE THE BUSINESS MODEL CANVAS TO SHOW US VERSION 1.0 OF YOUR IDEA IT’S EXERCISE TIME
  23. 23. PRESENTATIONS SHOW US YOUR BMC V1.0 SHOWTIME
  24. 24. WHAT IS CUSTOMER DEVELOPMENT? THE PROCESS TO DISCOVER & VALIDATE PROBLEM + SOLUTION BUSINESS MODEL GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING
  25. 25. NOW LATER MUCH LATER (~2 YEARS) PRODUCT-MARKET FIT CUSTOMER DISCOVERY • Am I solving a real problem? • Can I find customers ready to pay me for solving this problem? • Can I provide a solution that these customers will actually pay me for? CUSTOMER VALIDATION • Can I repeatably sell this product on the market? • Can I find more customers that will pay me for the solution? • Let’s talk about this stage if and when you get there • It usually takes a year or two to get here • This is when the classic MBA business & marketing stuff becomes useful SEARCHING FOR A 
 SCALABLE & REPEATABLE BUSINESS MODEL EXECUTING & SCALING UP VALIDATED
 SCALABLE & REPEATABLE BUSINESS MODEL ITERATE (SMALL CHANGE, NO CHANGE IN BMC) 
 OR PIVOT (CHANGES TO BMC) AS NEEDED THE PHASES OF A SUCCESSFUL STARTUP
  26. 26. PROBLEM SOLUTION *TWO* STEPS TO CUSTOMER DISCOVERY Are we solving a real problem? Who are the customers we are solving it for? Can we find customer who has this problem and would pay us to solve it? Is this the right solution that would actually solve the problem of the customers we found that are ready to pay us for it? STEP 1 STEP 2
  27. 27. DESIGN THINKING WHAT ABOUT IT?DESIGN THINKING VS CUSTOMER DEVELOPMENT SAME BUT DIFFERENT
  28. 28. FOUNDER’S PRODUCT VISION BUILD ENTIRE PRODUCT FIND CUSTOMERS FOUNDER’S PRODUCT VISION BUILD MVPS ITERATE & PIVOT CUSTOMER NEEDS BUILD MVPS ITERATE & PIVOT 20TH CENTURY TECH STARTUP 21ST CENTURY LEAN STARTUP DESIGN 
 THINKING • Launch-timing driven by Business Plan • Hire Sales Staff Good-Enough Data Launch-timing driven by Customer Validation Hire Sales Staff • Extensive Data • Launch Product • Hire Sales Staff
  29. 29. DESIGN THINKING VS 
 CUSTOMER DEVELOPMENT • CUSTOMER DEVELOPMENT AND DESIGN THINKING ARE BOTH CUSTOMER DISCOVERY PROCESSES • CUSTOMER DEVELOPMENT STARTS WITH, “I HAVE A TECHNOLOGY/PRODUCT, NOW WHO DO I SELL IT TO?” • DESIGN THINKING STARTS WITH, “I NEED TO UNDERSTAND CUSTOMER NEEDS AND ITERATE PROTOTYPES UNTIL I FIND A TECHNOLOGY AND PRODUCT THAT SATISFIES THIS NEED” • CUSTOMER DEVELOPMENT IS OPTIMISED FOR SPEED AND “GOOD ENOUGH” DECISION MAKING WITH LIMITED TIME AND RESOURCES • DESIGN THINKING IS OPTIMISED FOR GETTING IT COMPLETELY RIGHT BEFORE MAKING BIG BETS • BOTH MODELS WORK FOR LARGE COMPANIES -THERE IS NO RIGHT PROCESS FOR ALL TYPES OF CORPORATE INNOVATION.
  30. 30. THE CUSTOMER INTERVIEW“A SPECIAL KIND OF TORTURE” - JUSTIN WILCOX HOW DO WE DO IT?
  31. 31. HERE'S HOW TO DO IT WATCH THE VIDEO
  32. 32. MORE RESOURCES
  33. 33. • 10 MINUTES TALK MAX • KEEP IT CASUAL • ASK QUESTIONS & LISTEN • NO SELLING ALLOWED • ASK WHY • ASK ONLY ABOUT PAST 
 OR TODAY • WALK ME THROUGH IT • CURRENCY TEST: TIME REPUTATION OR MONEY GIVEN TO YOU? READ THIS BOOK:
  34. 34. INTERVIEW SCRIPTSIT MAY HELP YOU TO PREPARE SCRIPTS IN ADVANCE ONE B2B AND ONE B2C
  35. 35. INTERVIEW SCRIPT B2C 1. TELL ME A STORY ABOUT THE LAST TIME... 2. WHAT WAS THE HARDEST ABOUT THAT? 3. WHY WAS THAT HARD? 4. HOW DO YOU SOLVE IT NOW? 5. WHY IS THAT NOT SO GREAT? LOOK FOR EMOTIONS ASK WHY 5 TIMES
  36. 36. 1. WHAT IS YOUR ROLE? 2. WHAT DOES SUCCESS LOOK LIKE TO YOU? 3. WHAT IS THE HARDEST PART ABOUT
 ACHIEVING SUCCESS? INTERVIEW SCRIPT B2B
  37. 37. EXERCISE PRACTICE THE INTERVIEW PRACTICE ON EACH OTHER, SWITCH ROLES WITH TEAM MATE IT’S EXERCISE TIME
  38. 38. SUMMARY SO FAR… LET’S RECAP
  39. 39. SUMMARY SO FAR 2 OF 3 THE LEAN STARTUP = BUSINESS MODEL GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING & MVP
  40. 40. BUSINESS MODEL GENERATION
  41. 41. PROBLEM SOLUTION CUSTOMER DEVELOPMENT
  42. 42. AGILE ENGINEERING IS WHAT EXACTLY?WHAT IS A MIMUM VIABLE PRODUCT & INNOVATION ACCOUNTING? BUSINESS MODEL GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING
  43. 43. AGILE ENGINEERING • MINIMUM VIABLE PRODUCT INSTEAD OF FEATURE-COMPLETE • BUILD-MEASURE-LEARN ITERATIONS IN SMALL BATCHES 
 INSTEAD OF VERSION COMPLETE & WATERFALL PROCESS • GOOD ENOUGH VS PERFECT - SPEED IS OF THE ESSENCE • DATA / TEST DRIVEN DESIGN - HYPOTHESIS TESTING • AUTOMATED ACCEPTANCE TESTING + USER STORIES / SCENARIOS
 DESCRIBE WHAT WE WANT TO SEE THE SOFTWARE DO, THEN AUTOMATE 
 THE VERIFICATION THAT THE SOFTWARE ACTUALLY DOES IT • CONTINUOUS DEPLOYMENT, MULTIVARIABLE A/B TESTING, PAIR PROGRAMMING (XP), SCRUM & KANBAN
  44. 44. DEFINE PASS / FAIL CRITERIA IN ADVANCE
  45. 45. PASS / FAIL CRITERIA • TESTING YOUR CRITICAL ASSUMPTIONS, YOU NEED TO DEFINE THE SUCCESS AND FAIL CRITERIA IN ADVANCE TO KEEP YOU FROM FUDGING THE FINDINGS TO FIT YOUR BELIEFS AFTER THE FACT • IT NEEDS TO BE A QUANTITATIVE OR QUALITATIVE RESULT +40% IS OFTEN USED AS SUCCESS
  46. 46. I BELIEVE THAT PEOPLE LIKE (CUSTOMER SEGMENT) HAVE A NEED FOR OR PROBLEM DOING (NEED/ ACTION/BEHAVIOUR) AND I WILL KNOW THAT I HAVE SUCCEEDED WHEN (QUANTITATIVE / MEASURABLE OUTCOME) OR (QUALITATIVE / OBSERVABLE OUTCOME) EXAMPLE CRITERIA
  47. 47. MINIMUM VIABLE PRODUCT THE MVP
  48. 48. MVP THE SMALLEST BATCH THAT 
 WILL TEACH YOU SOMETHING A VERSION OF YOUR PRODUCT THAT WILL TEST YOUR RISKIEST ASSUMPTION WITH THE LEAST EFFORT
  49. 49. CREATE YOUR MVP IN ONE DAY?
  50. 50. DEFINE HOW & WHAT TO TRACK
  51. 51. MEASURE THE DATA FROM YOUR MVP
  52. 52. COMPARE DATA TO PASS / FAIL CRITERIA
  53. 53. ADAPT & ADJUST ACCORDINGLY
  54. 54. TEST AND TEST AGAIN
  55. 55. BUILD-MEASURE-LEARN CYCLES
  56. 56. MVP: THE SMALLEST PRODUCT 
 THAT WILL TEST YOUR MOST 
 CRITICAL ASSUMPTION(S) WITH DATA RELEASE IN SMALL BATCHES IN BUILD-MEASURE-LEARN CYCLES ITERATE OR PIVOT AS NEEDED PROBLEM SOLUTION
  57. 57. METRICS THAT MATTER WHAT & HOW TO MEASURE
  58. 58. MARKET / OPPORTUNITY SIZE
 •TAM - Total Available Market
 Theoretical total market size or customer 
 mass with problem today •SAM - Serviceable Available Market
 Theoretical total market size or customer mass 
 that are able to use / purchase a solution like 
 yours right now •SOM - Serviceable Obtainable Market 
 (or TM - Target Market)
 Your target market cap or customer base within 
 the next 2-3 years, your credible ambition TAM SAM SOM
  59. 59. •FOR EACH DOLLAR YOU SPEND ACQUIRING A CUSTOMER, HOW MANY DOLLARS DOES IT LEAVE BEHIND IN THE WHOLE LIFESPAN YOU HAVE THEM AS A CUSTOMER? •CAC = CUSTOMER ACQUISITION COST •LTV = CUSTOMER LIFETIME VALUE A CAC : LTV RATIO OF 1 : 3 OR BETTER = GOOD CAC VS LTV
  60. 60. THE DRIVING FACTORS •HIGH CHURN RATE •LOW CUSTOMER 
 SATISFACTION •LACK OF STICKINESS •RECURRING REVENUE •SCALABLE PRICING •CROSS-SELL / UP-SELL •ADDITIONS TO PRODUCT
 CATALOGUE •LEAD-GEN FOR 3RD PARTY •SALES FORCE IN THE FIELD •OUTBOUND MARKETING •UNOPTIMIZED CAMPAIGN •WRONG TARGET AUDIENCE •WRONG CHANNEL •NO NETWORK EFFECTS •NETWORK EFFECTS •INBOUND MARKETING •FREE OR FREEMIUM •OPEN SOURCE •FREE TRIAL •TOUCHLESS CONVERSION •DIRECT MARKETING •CHANNELS •STRATEGIC PARTNERSHIPS CAC LTV
  61. 61. •GROWTH MEASURED IN WEEK OVER WEEK • MORE THAN 7%-10% WEEK OVER WEEK IS GOOD “STARTUPS = GROWTH”
 - PAUL GRAHAM, YCOMBINATOR GROWTH RATE
  62. 62. “30 / 10 / 1”BY FRED “AVC” WILSON •WHAT IS THE % OF ALL YOUR REGISTERED USERS THAT WILL USE THE SERVICE OR APP MONTHLY / DAILY / CONCURRENT (AT ANY GIVEN TIME/IN REALTIME)? •30/10/1 OR BETTER IS GOOD ENGAGEMENT RATE
  63. 63. COHORTANALYSIS.COM
  64. 64. MORE THAN ONE WAY TO MVP ONLY CREATIVITY IS THE LIMIT
  65. 65. EXPLAINER VIDEO
  66. 66. LANDING PAGE
  67. 67. WIZARD OF OZ
  68. 68. WIZARD OF OZ ZAPPOS
  69. 69. MVP CONCIERGE
  70. 70. CONCIERGE FOOD ON THE TABLE
  71. 71. MVP PIECEMEAL
  72. 72. PIECEMEAL AARDVARK
  73. 73. CROWD FUNDING
  74. 74. CROWDFUNDING STARTUPS
  75. 75. CROWDFUNDING CORPORATES
  76. 76. A/B TESTING
  77. 77. A/B TESTING PROCTER&GAMBLE
  78. 78. SINGLE FEATURE GOOGLE
  79. 79. MVP - SEVERAL TYPES: • EXPLAINER VIDEO (DROPBOX) • A LANDING PAGE (EVERYONE) • WIZARD OF OZ MVP (ZAPPOS) • CONCIERGE MVP (FOOD ON THE TABLE) • PIECEMEAL MVP (WIZARD OF OZ + CONCIERGE) • CROWD FUNDING (SELL BEFORE YOU BUILD) • A / B TESTING (P&G - DATA TALKS, BS WALKS) • SINGLE-FEATURE MVP (GOOGLE)
  80. 80. MVP IS HARD
 DO NOT DESPAIR IT’S AN ART FORM
  81. 81. THE 5 
 PHASES OF PRODUCT- MARKET FIT A HELPFUL FRAMEWORK
  82. 82. ON YOUR PATH TO PRODUCT-MARKET FIT, THERE ARE FIVE PHASES OF ASSUMPTION VALIDATION YOU’LL PROGRESS THROUGH. IN ORDER OF “RISKINESS”, THOSE PHASES ARE:
 1. FINDING EARLY ADOPTERS FOR YOUR PRODUCT 2. OFFER TESTING: YOU CAN REACH YOUR EARLY ADOPTERS 3. CURRENCY TESTING: YOUR EARLY ADOPTERS WILL PAY YOU 4. UTILITY TESTING: YOU CAN SATISFY YOUR EARLY ADOPTERS 5. SCALING TO FIT: YOU CAN ACHIEVE PRODUCT-MARKET FIT 5 PHASES OF 
 PRODUCT-MARKET FIT - Justin Wilcox, customerdevlabs.com
  83. 83. THE RISKIEST ASSUMPTION, FOR EVERY STARTUP, IS THAT THERE ARE PEOPLE ACTIVELY TRYING TO SOLVE THE PROBLEM YOUR PRODUCT WILL SOLVE FOR THEM – THESE ARE THE PEOPLE WE REFER TO AS YOUR EARLY ADOPTERS. IN PARTICULAR, YOUR GOAL DURING THIS PHASE OF TESTING IS TO VALIDATE: • THERE ARE PEOPLE ALREADY TRYING TO SOLVE THE PROBLEM (EARLY ADOPTERS) • YOU KNOW HOW THEY DESCRIBE THE PROBLEM • YOU KNOW THE EMOTIONS THEY EXPERIENCE ASSOCIATED WITH THE PROBLEM • YOU KNOW WHERE/HOW TO REACH THEM • THE DEFICIENCIES OF THEIR CURRENT SOLUTION • EXPERIMENT TO RUN: THE BEST TECHNIQUE FOR VALIDATING THESE ASSUMPTIONS IS THE CUSTOMER DISCOVERY INTERVIEW. INTERVIEWS WILL ANSWER ANY QUESTIONS YOU HAVE REGARDING THE ASSUMPTIONS ABOVE, AND SET YOU UP FOR SUCCESS IN VALIDATING THE REST OF YOUR ASSUMPTIONS. METRIC TO MEASURE: WHAT PERCENTAGE OF CUSTOMERS YOU INTERVIEW REPORT TAKING STEPS TO SOLVE THE SAME PROBLEM W/N THE LAST 6 MONTHS? ONCE 60% OF YOUR LAST 10 INTERVIEWEES REPORT ACTIVELY TRYING TO SOLVE THE SAME PROBLEM 1. FINDING EARLY ADOPTERS 
 FOR YOUR PRODUCT
  84. 84. DURING YOUR INTERVIEWS, CUSTOMERS WILL TELL YOU WHERE AND HOW TO REACH OTHER EARLY ADOPTERS. YOUR GOAL IN THIS PHASE IS TO VALIDATE WHAT THEY TOLD YOU. IN OTHER WORDS, YOU’RE TESTING THAT YOU CAN FIND MORE EARLY ADOPTERS, YOU KNOW WHAT TO SAY TO THEM WHEN YOU FIND THEM, AND THAT THEY’RE EAGER ENOUGH FOR A SOLUTION TO THE PROBLEM THAT THEY ASK YOU FOR MORE INFORMATION. MVP TO BUILD: TO VALIDATE THIS ASSUMPTION, YOU’RE GOING TO TEST A COMBINATION OF MARKETING CHANNELS AND MARKETING MESSAGES BASED ON THE RESULTS OF YOUR INTERVIEWS. POTENTIAL MVPS: • AD CAMPAIGNS • COLD EMAIL OUTREACH • COLD CALLING CAMPAIGNS • BECOMING MEMBER OF FORUMS/COMMUNITIES • SOCIAL MEDIA OUTREACH • ATTENDING CONFERENCES, MEETUPS, ETC
 METRIC TO MEASURE: ONCE YOUR EARLY ADOPTERS’ RESPONSE RATE TO YOUR “SOLUTION OFFER” (I.E. CLICK ON YOUR ADS, RESPOND TO YOUR EMAILS, ETC.) IS HIGH ENOUGH THAT YOU CAN CLEARLY SEE A PATH TO PRODUCT- MARKET FIT, YOU’RE READY TO TEST THE NEXT ASSUMPTION. 2. OFFER TESTING: 
 YOU CAN REACH YOUR EARLY ADOPTERS
  85. 85. ONCE YOU’VE VALIDATED YOU CAN REACH YOUR EARLY ADOPTERS, YOU NEED TO TEST IF THEY’LL “PAY” YOU SUFFICIENTLY TO SOLVE THE PROBLEM. IN THIS CASE “PAYMENT” CAN BE IN THE FORM OF ACTUAL CASH, OR IT CAN BE SOMETHING ELSE THAT LEADS DIRECTLY TO YOUR PRODUCT-MARKET FIT (E.G. USAGE OF YOUR PRODUCT, PERSONAL DATA, ETC.) DEPENDING ON YOUR BUSINESS MODEL. MVP TO BUILD: TO VALIDATE THIS ASSUMPTION YOU’RE GOING TO ACTUALLY ASK FOR “PAYMENT.” WHILE YOU WON’T USUALLY TAKE THE PAYMENT (BECAUSE YOUR PRODUCT HASN’T BEEN BUILT YET), YOU’RE GOING TO ASK FOR IT AND MEASURE HOW MANY EARLY ADOPTERS TRY TO PAY YOU. EXAMPLES INCLUDE: • LANDING PAGE WITH PRE-ORDER FUNCTIONALITY • REQUESTING A LETTER OF INTENT AFTER A SOLUTION INTERVIEW • A MOBILE APP W/ JUST ENOUGH FUNCTIONALITY TO MEASURE THE NUMBER OF DOWNLOADS AND OPENS 
 METRIC TO MEASURE: ONCE YOUR EARLY ADOPTERS “PAYMENT” CONVERSION RATE IS HIGH ENOUGH THAT YOU CAN CLEARLY SEE A PATH TO PRODUCT-MARKET FIT, YOU’RE READY TO TEST WHETHER YOU CAN START SOLVING THE PROBLEM! 3. CURRENCY TESTING: 
 YOUR EARLY ADOPTERS WILL PAY YOU
  86. 86. NOW IT’S TIME TO TEST WHETHER YOU CAN ACTUALLY SOLVE YOUR EARLY ADOPTERS’ PROBLEMS. WHILE IT CAN BE TEMPTING TO AUTOMATE YOUR FIRST COUPLE ATTEMPTS AT A SOLUTION, THERE’S USUALLY A MORE EFFICIENT WAY TO TO TEST THIS ASSUMPTION. MVP TO BUILD: MANUAL SOLUTIONS ARE THE BEST WAY TO TEST WHETHER YOU CAN SOLVE AN EARLY ADOPTER’S PROBLEM. WHILE THEY MAKE TAKE MORE OF YOUR TIME TO SOLVE A CUSTOMER’S PROBLEM, MANUAL SOLUTIONS ARE MUCH FASTER TO BUILD, AND EVEN FASTER TO ITERATE ON, THAN AUTOMATED (I.E. SOFTWARE) SOLUTIONS. EXAMPLES INCLUDE: • CONCIERGE MVP • WIZARD OF OZ MVP 
 METRIC TO MEASURE: ONCE YOU’RE SOLVING THE PROBLEM SUFFICIENTLY WELL THAT YOUR CUSTOMER LIFETIME VALUE AND YOUR VIRAL CO-EFFICIENT ARE HIGH ENOUGH THAT YOU’RE TRACKING TOWARDS PRODUCT-MARKET FIT, YOU’RE READY TO START SCALING YOUR SOLUTION! 4. UTILITY TESTING: 
 YOU CAN SATISFY YOUR EARLY ADOPTERS
  87. 87. ONCE YOU’VE VALIDATED THAT EARLY ADOPTERS EXIST, YOU CAN REACH THEM, THEY’LL PAY YOU, AND YOU CAN SOLVE THEIR PROBLEMS SUFFICIENTLY, THE ONLY ASSUMPTION LEFT IS THAT YOU CAN SCALE UNTIL YOU ACHIEVE PRODUCT-MARKET FIT. MVP TO BUILD: NOW IS THE TIME YOU GET TO AUTOMATE YOUR SOLUTION, SCALE TO MULTIPLE MARKETING CHANNELS, AND BRANCH OUT TO YOUR SECOND AND THIRD CUSTOMER SEGMENTS. EXAMPLES INCLUDE: • BETA VERSION OF YOUR SOFTWARE • SOFTWARE-BASED PILOT FOR A LARGE CUSTOMER • RUNNING OUTREACH CAMPAIGNS IN MULTIPLE CHANNELS SIMULTANEOUSLY • MULTIPLE, SIMULTANEOUS, LANDING PAGE TEST TARGETING DIFFERENT CUSTOMERS METRIC TO MEASURE: AT THIS POINT YOU’RE MEASURING THAT ALL YOUR PREVIOUS METRICS (E.G. RESPONSE RATE, CONVERSION RATE, LIFETIME VALUE AND VIRAL CO-EFFICIENT) ARE ALL STILL TRACKING TOWARDS YOU ACHIEVING PRODUCT-MARKET FIT. 5. SCALING TO FIT: 
 YOU CAN ACHIEVE PRODUCT-MARKET FIT
  88. 88. TOOLS TO HELP YOUR MVP SOME EXAMPLES
  89. 89. EXAMPLE TOOLS FOR AN MVP
  90. 90. EXERCISE DEFINE YOUR MOST CRITICAL ASSUMPTION & 
 HOW TO TEST? EXERCISE TIME
  91. 91. EXERCISE DEFINE YOUR MVP & 
 PASS / FAIL CRITERIA EXERCISE TIME
  92. 92. LEAN LAUNCHPAD THE EARLY-STAGE
 SUPPORT PROGRAM THE NEXT STEP
 FROM PLUSANDERSEN.COM
  93. 93. THE LEAN LAUNCHPAD (LLP) OUTSIDE
 WORK MEETUPS MENTORING VIDEO LECTURES
 WRITTEN MATERIAL
 CUSTOMER INTERVIEWS EXPERIENCE-BASED DISCUSSIONS - INSIGHTS ADDITIONAL LECTURES
 ACCOUNTABILITY
 FEEDBACK, PEER REVIEW DURING MEETUPS
 BETWEEN MEETUPS WITH EXPERIENCED
 ENTREPRENEURS
  94. 94. LLP +4.000 TEAMS WORLD WIDE • STARTED AT STANFORD & BERKELEY
 IN 2011 • NATIONAL SCIENCE FOUNDATION’S
 INNOVATION-CORPS • +200 UNIVERSITIES WORLD WIDE • +40 ACCELERATORS / INCUBATORS • FORTUNE 500 CORPORATIONS
  95. 95. THE NATIONAL SCIENCE FOUNDATION (NSF) IS A UNITED STATES GOVERNMENT AGENCY THAT SUPPORTS FUNDAMENTAL RESEARCH AND EDUCATION IN ALL THE NON-MEDICAL FIELDS OF SCIENCE AND ENGINEERING THEY DECIDE WHICH PUBLIC SCIENTIFIC RESEARCH PROJECTS WILL GET FEDERAL FUNDING FOR COMMERCIALISATION IN THE US BUDGET: $7B ANNUALLY LLP CASE STUDY
  96. 96. NSF'S iCORPS ACCELERATOR PROGRAM WENT FROM A 18% TO A +60% FUNDING RATE OF PROJECTS AFTER REQUIRING APPLICANTS TO TAKE THE LEAN LAUNCHPAD PROGRAM AS A PREREQUISITE FOR APPLYING FOR FUNDING LLP CASE STUDY 50X FASTER INNOVATION WITH THE LLP
  97. 97. CONTACT V@PLUSANDERSEN.COM TO TALK ABOUT A LEAN LAUNCHPAD PROGRAM FOR YOUR ORGANISATION, COMPANY OR UNIVERSITY LEAN LAUNCHPAD
  98. 98. THE LEAN LAUNCHPAD FORMAT THE PEER REVIEW FORMAT 1. WHAT WAS YOUR PREVIOUS CONCRETE 5 STEPS? 
 2. WHAT WAS YOUR RESULTS SINCE THE LAST REVIEW? 
 (#OF INTERVIEWS AND % OF PASS/FAIL, DID YOU DO ALL 5) 
 3. WHAT DID YOU LEARN / CHANGE IN THE BMC AND WHY? 4. WHAT IS YOUR CURRENT BIGGEST CHALLENGE(S)? 
 5. WHAT CONCRETE NEXT 5 STEPS ARE YOU TAKING 
 IN THE NEXT WEEK? (ACTIONABLE)
  99. 99. OVERVIEW THE LEAN STARTUP THE LEAN STARTUP = BUSINESS 
 MODEL 
 GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING 
 & MVP
  100. 100. 1. ARTICULATE YOUR HYPOTHESES (GUESSES ABOUT THE UNKNOWNS) USING THE BUSINESS MODEL CANVAS (BMC). 2. GET OUT OF THE BUILDING AND TEST THESE HYPOTHESES USING CUSTOMER DEVELOPMENT. 3. VALIDATE LEARNINGS BY BUILDING MINIMUM VIABLE PRODUCTS AND GETTING THEM IN FRONT OF CUSTOMERS. 4. ITERATE (SMALL VARIATION, NO REAL CHANGE IN BMC) OR PIVOT (SOMETHING CHANGED IN THE BMC) AS NEEDED. 5. BUILD - MEASURE - LEARN (AKA RINSE, LATHER, REPEAT - BECAUSE THIS IS AN ITERATIVE AND CONTINUOUS PROCESS - YOU HAVE TO GET OUT OF THE BUILDING MORE THAN ONCE!) THE LEAN STARTUP
  101. 101. HTTPS://IS.GD/HOWTOBUILDASTARTUP FREE ONLINE COURSE WITH STEVE BLANK, THE FATHER OF THE LEAN STARTUP THE THEORETICAL PART OF THE
 LEAN LAUNCHPAD PROGRAM
 FROM STANFORD TAKE THIS FREE ONLINE COURSE EVERYTHING YOU NEED TO KNOW:
  102. 102. CONTACT
 YOU@PLUSANDERSEN.COM +ANDERSEN 
 & ASSOCIATES INNOVATION & GROWTH THROUGH SCIENCE + ENTREPRENEURSHIP
  103. 103. WE HELP 
 YOUR COMPANY 
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  104. 104. PRE-ACCELERATION ACCELERATIONGENERATION EDUCATION SELECTION FINAL DECISION SCALING UP DEALFLOW LEARNING JOURNEY LEARNING KEYNOTE KILL YOUR COMPANY INNOVATOR MASTERCLASS INNOVATOR BOOTCAMP LEAN LAUNCHPAD MVP AS 
 A SERVICE INNOVATION OUTPOSTS DEMO DAY PITCHING MASTERCLASS EXPERTS AS A SERVICE MENTORS AS A SERVICE TRAIN THE TRAINER SPINNING OUT +ANDERSEN PROGRAMS AT ALL STAGES
  105. 105. MORE PLUSANDERSEN.COM • Education & Training • Programs & Processes • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets

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