Lean Startup Crash Course, Moldova Feb 18. 2017

1. LEAN STARTUP CRASH COURSE IHUB  MOLDOVA, FEB 18. 2017

2. MORE VIDARANDERSEN.COM VIDAR ANDERSEN • STARTUP FOUNDER • EDUCATOR • INNOVATION ADVISOR FOUNDING PRINCIPAL +ANDERSEN & ASSOCIATES

3. +ANDERSEN   & ASSOCIATES INNOVATION & GROWTH THROUGH SCIENCE + ENTREPRENEURSHIP CONTACT  YOU@PLUSANDERSEN.COM

4. OVERVIEW DOING LEAN RIGHT THE LEAN STARTUP = BUSINESS   MODEL   GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING   & MVP

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. WHAT WE KNOW NOW THE STORY SO FAR…

7. STARTUPS ARE NOT SMALLER VERSIONS OF LARGER COMPANIES

8. A COMPANY IS A PERMANENT ORGANISATION DESIGNED TO EXECUTE A REPEATABLE AND SCALABLE BUSINESS MODEL IN A PREDICTABLE AND STABLE ENVIRONMENT

9. A STARTUP IS A TEMPORARY ORGANISATION DESIGNED TO SEARCH FOR A REPEATABLE AND SCALABLE BUSINESS MODEL IN AN ENVIRONMENT OF   EXTREME UNCERTAINTY

10. A STARTUP IS A TEMPORARY ORGANISATION DESIGNED TO SEARCH FOR A REPEATABLE AND SCALABLE BUSINESS MODEL IN AN ENVIRONMENT OF   EXTREME UNCERTAINTY

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. SEARCH BUSINESS MODEL GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING

13. EXECUTION LARGE COMPANY

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. WHAT IS A BUSINESS MODEL? BUSINESS MODEL GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING INTRODUCING THE BUSINESS MODEL CANVAS

16. www.udacity.com/overview/Course/ep245

19. https://www.youtube.com/watch?v=aN36EcTE54Q VALUE PROPOSITION CANVAS

20. EXERCISE EXISTING MODELMODEL A WELL KNOWN COMPANY USING THE BMC IT’S EXERCISE TIME

21. IT’S EXERCISE TIME

22. EXERCISE FILL OUT   FIRST BMCUSE THE BUSINESS MODEL CANVAS TO SHOW US VERSION 1.0 OF YOUR IDEA IT’S EXERCISE TIME

23. PRESENTATIONS SHOW US YOUR BMC V1.0 SHOWTIME

24. WHAT IS CUSTOMER DEVELOPMENT? THE PROCESS TO DISCOVER & VALIDATE PROBLEM + SOLUTION BUSINESS MODEL GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING

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. 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. DESIGN THINKING WHAT ABOUT IT?DESIGN THINKING VS CUSTOMER DEVELOPMENT SAME BUT DIFFERENT

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. 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. THE CUSTOMER INTERVIEW“A SPECIAL KIND OF TORTURE” - JUSTIN WILCOX HOW DO WE DO IT?

31. HERE'S HOW TO DO IT WATCH THE VIDEO

32. MORE RESOURCES

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. INTERVIEW SCRIPTSIT MAY HELP YOU TO PREPARE SCRIPTS IN ADVANCE ONE B2B AND ONE B2C

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. 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. EXERCISE PRACTICE THE INTERVIEW PRACTICE ON EACH OTHER, SWITCH ROLES WITH TEAM MATE IT’S EXERCISE TIME

38. SUMMARY SO FAR… LET’S RECAP

39. SUMMARY SO FAR 2 OF 3 THE LEAN STARTUP = BUSINESS MODEL GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING & MVP

40. BUSINESS MODEL GENERATION

41. PROBLEM SOLUTION CUSTOMER DEVELOPMENT

42. AGILE ENGINEERING IS WHAT EXACTLY?WHAT IS A MIMUM VIABLE PRODUCT & INNOVATION ACCOUNTING? BUSINESS MODEL GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING

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. DEFINE PASS / FAIL CRITERIA IN ADVANCE

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. 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. MINIMUM VIABLE PRODUCT THE MVP

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. CREATE YOUR MVP IN ONE DAY?

50. DEFINE HOW & WHAT TO TRACK

51. MEASURE THE DATA FROM YOUR MVP

52. COMPARE DATA TO PASS / FAIL CRITERIA

53. ADAPT & ADJUST ACCORDINGLY

54. TEST AND TEST AGAIN

55. BUILD-MEASURE-LEARN CYCLES

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. METRICS THAT MATTER WHAT & HOW TO MEASURE

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. •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. 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. •GROWTH MEASURED IN WEEK OVER WEEK • MORE THAN 7%-10% WEEK OVER WEEK IS GOOD “STARTUPS = GROWTH”  - PAUL GRAHAM, YCOMBINATOR GROWTH RATE

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. COHORTANALYSIS.COM

64. MORE THAN ONE WAY TO MVP ONLY CREATIVITY IS THE LIMIT

65. EXPLAINER VIDEO

66. LANDING PAGE

67. WIZARD OF OZ

68. WIZARD OF OZ ZAPPOS

69. MVP CONCIERGE

70. CONCIERGE FOOD ON THE TABLE

71. MVP PIECEMEAL

72. PIECEMEAL AARDVARK

73. CROWD FUNDING

74. CROWDFUNDING STARTUPS

75. CROWDFUNDING CORPORATES

76. A/B TESTING

77. A/B TESTING PROCTER&GAMBLE

78. SINGLE FEATURE GOOGLE

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. MVP IS HARD  DO NOT DESPAIR IT’S AN ART FORM

81. THE 5   PHASES OF PRODUCT- MARKET FIT A HELPFUL FRAMEWORK

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. 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. 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. 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. 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. 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. TOOLS TO HELP YOUR MVP SOME EXAMPLES

89. EXAMPLE TOOLS FOR AN MVP

90. EXERCISE DEFINE YOUR MOST CRITICAL ASSUMPTION &   HOW TO TEST? EXERCISE TIME

91. EXERCISE DEFINE YOUR MVP &   PASS / FAIL CRITERIA EXERCISE TIME

92. LEAN LAUNCHPAD THE EARLY-STAGE  SUPPORT PROGRAM THE NEXT STEP  FROM PLUSANDERSEN.COM

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. 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. 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. 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. CONTACT V@PLUSANDERSEN.COM TO TALK ABOUT A LEAN LAUNCHPAD PROGRAM FOR YOUR ORGANISATION, COMPANY OR UNIVERSITY LEAN LAUNCHPAD

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. OVERVIEW THE LEAN STARTUP THE LEAN STARTUP = BUSINESS   MODEL   GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING   & MVP

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. 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. CONTACT  YOU@PLUSANDERSEN.COM +ANDERSEN   & ASSOCIATES INNOVATION & GROWTH THROUGH SCIENCE + ENTREPRENEURSHIP

103. WE HELP   YOUR COMPANY   GET READY   FOR TOMORROW TODAY PLUSANDERSEN.COM

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. MORE PLUSANDERSEN.COM • Education & Training • Programs & Processes • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets