Steve Guengerich, co-founder of Appconomy gives an introduction to Lean Startup: What is a Lean Startup?
Text of Lean Startup Machine Shanghai 2012 - Introduction to Lean Startup: Steve Guengerich - Appconomy
1. Steve GuengerichJune 30, 20122012630
2. How to Identify a Lean Startup 3. 11 727 20 4. 58 new product ideas to get 1 successful product58 5. 66% change their original plansdrastically66% 6. Not a better Plan ABut a path to a plan that works. 7. Lean Startup is a rigorous process for iteratingfrom a Plan A to a plan that works 8. Agenda 1. What is a Lean Startup? ?2. What does a Lean Startup look like? 3. How can you use Lean to define and measure progress? 9. New Idea Stages of Adoption Ignored Misunderstood Obvious now and before 10. We are Lean because we got a great deal on our furniture 11. We are Lean because we got a great deal on our furniture we surveyed all our customers and foundthat 12. We are Lean because we got a great deal on our furniture we surveyed all our customers and foundthat weve implemented continuous deployment 13. A Lean Startup is about speedStartups that succeed are those that manage toiterate enough times before running out ofresources. - Eric Ries 14. A Lean Startup is about focusFocus on the right actions that are important tothe startup, and ignore the rest. 15. Characteristics of a Lean Startup 16. Business Model vs. Business Plan vs. 17. Business model hypothesis1. What is the problem Im solving? 2. Who is the customer? 3. How business model 18. Lean Startup canvasProblem SolutionUniqueUnfairCustomerValue Advantage SegmentsPropositionTop 3 problemsTop 3 features Cant be easilyTarget customersSingle, compelling copied or boughtclear messageKey that states whyChannelsyou are differentActivityand worth buyingActivity that Path todrives retention/ customersrevenueCost Structure Revenue StreamsCustomer acquisition costs Revenue modelDistribution costs Life time valueHostingRevenuePeople, etc. Gross margin 19. / 20. Validate Problem / Solution Fit /Problem/solutionProduct/marketScale fit /fit / Do I have a problem worth solving? 21. Problem/Solution Fit - Lean CanvasP S UVP UA CSTop 3 problemsTop 3 featuresSingle, compelling Cant be easilyTargetclear messagecopied or bought customersthat states whyKAyou are different CHand worth buyingActivity that Path todrives retention/ customersrevenueC$ R$Customer acquisition costs Revenue modelDistribution costs Life time valueHostingRevenuePeople, etc. Gross margin 22. Achieve Product / Market Fit / Problem/solution Product/marketScalefitfit Have I built something people want? 23. Product development gets in the way of learning Most learning happensSome learning here RequirementsDevelopment QA Release Very little learning 24. Involve customers throughout product dev Requirements ContinuousRelease DeploymentCustomer CustomerDiscoveryValidation 25. Product/Market Fit - Lean CanvasP S UVP UA CSTop 3 problemsTop 3 featuresSingle, Cant be easilyTarget customerscompelling clearcopied or boughtmessage thatKAstates why youCHare different andworth buyingActivity that Path todrives revenue/ customersretentionC$R$Customer acquisition costsRevenue modelDistribution costsLife time valueHosting RevenuePeople, etc.Gross margin 26. Scale - Lean CanvasP S UVP UA CSTop 3 problemsTop 3 featuresSingle, compelling Cant be easily Target customersclear messagecopied / boughtthat states whyKAyou are different CHand worth buyingActivity that Path todrives revenue/ customersretentionC$ R$Customer acquisition costs Revenue modelDistribution costs Life time valueHostingRevenuePeople, etc. Gross margin 27. After Product / Market Fit / Problem/solutionProduct/market Scalefit fitValidated learning Growth Pivots Optimizations 28. Start with what matters PSUVPUA CS Feature #1 Feature #2 Feature #3Problem #1 #1FoundersProblem #2 #2MarketersProblem #3 #3 #1KACH #2 #3C$R$ 29. But also tackle the riskiest partPSUVPUACS Something that cant be copiedProblem #1 Feature #1or bought FoundersProblem #2 Feature #2MarketersProblem #3 Feature #3 KACH PersonalauthorityWebsiteC$R$Subscription model: $49 / mo.: $49 30. Formulate falsifiable hypotheses Leap of Faith: Being known as an expert will drive early adopters: Hypothesis: Blog post will drive > 100 early sign-ups : 31. Build accessible dashboardsCH Personal authority will drive early adoptersHypothesisMetricsWeek 1 Week 2Blog post will drive > 100 early sign-ups Number of teaser 7220page sign-upsConduct 30-50 customer interviews within Number of customer 594 weeksinterviewsCS Early adopters will primarily be pre-product/market fit companiesHypothesisMetricsWeek 1 Week 280% of early adopters will be foundersPercentage of4/56/9interviewees that fit this descriptionPProblem fitHypothesisMetricsWeek 1 Week 280% of early adopters will vote problem Number of must-3/37/9as must-havehave votes from customer interviews 32. CH 72 2043050 5 9CS / 80% 4/56/9P 80% 3/3 7/9 33. Make the results auditable 34. Run board meetings in a lessons learned format 35. Steve GuengerichSteveG@appconomy.com@sguengerich on Weibo and TwitterThanks !