At STARTup Live Vienna 2012, followed by a call-in with Ash Maurya. New material: Improved why is this relevant, brought into context to the "we need to raise money" point of view. Licensed under CC-BY-NC-SA - feel free to share, embed and re-use in your presentations, please give attribution. Thanks!

1. Lean Startup Essentials
How to save time,
money & headaches
Lean Startup Essentials
Lukas Fittl
lukas@fittl.com
Slides licensed under CC-BY-NC-SA. Lean Startup is trademarked by Eric Ries.
Business Model Canvas is created by Alex Osterwalder and licensed under CC-BY-SA.

2. Lean Startup Essentials
About Me
• Entrepreneur
(Efficient Cloud, Soup.io)
• Member of Spark59
(Lean Canvas, Running Lean)
• http://founderswiki.com/

3. Lean Startup Essentials
Focus
• #1 - Presenting to Investors & Press
• #2 - Make Something People Want

4. Lean Startup Essentials
Based on the work by
these folks
& many others

5. Lean Startup Essentials
Its gonna Why am I WOW!
be awesome! doing this? It works!
oo oo oo

6. Lean Startup Essentials
Why am I
doing this?
oo

7. Lean Startup Essentials
Product/
Market Fit
Why am I WOW!
doing this? It works!
oo oo

8. Lean Startup Essentials
How can we
hack growth?

9. Lean Startup Essentials
How can we reach
Product/Market
Fit?

10. Lean Startup Essentials
Startup:
Temporary organization used to
search for a repeatable and scalable
business model.
As defined by Steve Blank.

11. Lean Startup Essentials
We need to
experiment
& learn.
Not execute blindly.

12. Lean Startup Essentials
1. ?
2. ?
3. Growth!

13. Lean Startup Essentials
1. ?
2. Run Experiments
3. Growth!

14. Lean Startup Essentials
1. Understand your Business Model
2. Run Experiments
3. Growth!

15. Lean Startup Essentials #1: The Lean Canvas
Understand Your
Business Model

16. Lean Startup Essentials #1: The Lean Canvas
The Business
Model Canvas
Alex Osterwalder - Business Model Generation
http://businessmodelgeneration.com

17. Lean Startup Essentials #1: The Lean Canvas
The Lean Canvas
BM Canvas adjusted for early-stage
Ash Maurya - Running Lean
http://book.runningleanhq.com

19. Lean Startup Essentials #1: The Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
Top 3 problems Top 3 features
Single, clear, Can’t be easily Target customers
compelling copied or bought
message that
states why you
are different and
Key Metrics worth buying Channels
Key activities you Path to
measure customers
Cost Structure Revenue Streams
Customer Acquisition Costs Revenue Model
Distribution Costs Life Time Value
Hosting Revenue
People, etc. Gross Margin

20. Lean Startup Essentials #1: The Lean Canvas
Customer Segments
• Persona of your
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segments
prototypical (early) customer
Key Channels
Resources
Cost Structure Revenue Streams
• Narrow group of people that
buy/use your product
• Marketing is easier if you
have a narrow customer
segment

21. Lean Startup Essentials #1: The Lean Canvas
Problem
• What is the use case?
Problem Key Activities Value Customer Customer
Proposition Relationships Segments
Key Channels
• What are the problems the
Resources
Cost Structure Revenue Streams
customer is trying to solve?
• These might be things they’ve
already started building in
house, because there is an
active need

22. Lean Startup Essentials #1: The Lean Canvas
Value Proposition
• Single, clear, compelling
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segments
message that turns an unaware
Key Channels
Resources
visitor into an interested
Cost Structure Revenue Streams
prospect
• Your elevator pitch
• What you put on your
landing page

23. Lean Startup Essentials #1: The Lean Canvas
Solution
• Whats the Minimum viable
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segments
product (MVP) ?
Key Channels
Resources
Cost Structure Revenue Streams
• Minimal set of functionality to
solve each problem of the
customer

24. Lean Startup Essentials #1: The Lean Canvas
Channels
• How does the customer learn
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segments
about your product?
Key Channels
Resources
Cost Structure Revenue Streams
• B2B and B2C vastly different!
• SEM, SEO, Friend Invites, Social
Media, Direct Sales, Tradeshows,
PR, Content Marketing, etc.

25. Lean Startup Essentials #1: The Lean Canvas
Revenue Streams
• How much is the problem
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segments
worth to the customer?
Key Channels
Resources
Cost Structure Revenue Streams
• Not how much it costs you
to implement the solution
• Avoid Free and Freemium
Its just a marketing tactic!

26. Lean Startup Essentials #1: The Lean Canvas
This document is alive
and easy to update
(not like your rusty old business plan)

27. Lean Startup Essentials #2: Run Experiments
Run Experiments

28. Lean Startup Essentials #2: Run Experiments
Build-Measure-Learn

29. Lean Startup Essentials #2: Run Experiments
Launch
=
First iteration

30. Lean Startup Essentials #2: Run Experiments
Speed of iteration
beats
Quality of iteration

31. Lean Startup Essentials #2: Run Experiments
How can you
experiment faster?

32. Lean Startup Essentials #2: Run Experiments
Instead of
“Will it work?”
ask
“Do customers care?”

33. Lean Startup Essentials #2: Run Experiments
Customer Interviews
30 min in-person with
your prototypical customer
People like talking about their field -
explore their worldview.

34. Lean Startup Essentials #2: Run Experiments
How to conduct an interview
1. Set context & tell your story
2. Tell your problem hypothesis
3. Listen to their worldview
4. Ask for follow up / references
DO NOT sell them your solution

35. Lean Startup Essentials #2: Run Experiments
Online Market Tests:
Google Adwords
Fake Landing Page with
“Signup to be notified when we launch”
“Can we call you to ask a couple of Qs?”

36. Lean Startup Essentials #2: Run Experiments
MVP: Minimum
Viable Product

37. Lean Startup Essentials #2: Run Experiments
Example:
Idealab’s CarsDirect
Back in ’98

38. Lean Startup Essentials #2: Run Experiments
Example:
mjam.at

39. Lean Startup Essentials
Ignore at your own risk.
Why am I
doing this?
oo

40. Lean Startup Essentials
Thanks!
Lukas Fittl
lukas@fittl.com
Slides licensed under CC-BY-NC-SA. Lean Startup is trademarked by Eric Ries.
Business Model Canvas is created by Alex Osterwalder and licensed under CC-BY-SA.