Lean Startup Principles

Do not open the kit until I say GO!

Build the tallest freestanding structure.The entire marshmallow must be on the very top.

You’ll have 18 minutes.

Use as much or as little of the kit contents as you want, but nothing else!

EXERCISE

“I wish I knew that sooner.”

Our job is to bring ourselves the bad news sooner.

Care too much about their ideas, and look for certainty in process.

1st timers

Care too much about their ideas, and look for certainty in process.

1st timers

Care more about opportunity cost,and look for certainty in evidence.

Experienced founders

Build

Learn

Measure

Principles,not process.

PrinciplesIterationDo LessImprove the big pictureLearn, then confirmCourse-correction

Agency5 startupsLeancamp

Salim Virani

Rob FitzpatrickY CombinatorStartup ToolkitThe Mom Test

I know this. I don’t know this.

I know this. I think I know this.

Our learning goals today.

POST UP

Do less.

Don’t work hard to mask your inefficiency.

Not enough time?Not enough money?

Grow with efficiency.

How to Do Less.Time limits.Letting go.Being picky about customers.Multiplying deliberately.Limiting work-in-progress.

Inside the building -Use a timer.

DISCUSSION

Good for vision, inventing and improving.

Bad for getting stuck on specifics that don’t work.

Tenacity

Balancing focus &opportunity

What I can do

What I’vegot

Small partnerships.

Affordable Loss.

Grow like weeds!Spring up in unexpected places.Grow quickly, or die and move on.

0101001,00010,000100,0001,000,00010,000,000

Add a zero

Is this conversation useful?

Early traction.

EarlyvangelistsHave the problem

Know they have the problem!Have budget to solve it.

Have looked for a solution.Have tried to build a solution.

EXERCISE

Slicing off segmentsThey are real people (not attributes!)

It’s clear where to find them.You’ll walk away if they aren’t a good fit.

EXERCISE

Choose your customer.

Lack of direction.

Vague customer definitions.

Multiple customer definitions.

Specific definitions allow for validation or invalidation.

And that speeds progress.

Take a look at the customers’ worldLooking at different aspects of their lives, we’ll examine our own beliefs about them, who they are – and if they really exist, how to frame our value in their context.

Find early adopters.Find specific customers.

Specific value propositions are more compelling and help you get early traction.

Specific customer definitions help find them quickly, and point out scalable channels to reach them.

Zoom in!

Product Market

Action Customer

Jobs Obstacles Goals Current Solution

Customer Slicing

Decision Trigger

Interest Trigger

EXERCISE

Jobs Obstacles Goals Current Solution

Customer Slicing

Decision Trigger

Interest Trigger

How deep do you go?

EXERCISE

Jobs Obstacles Goals Current Solution

Customer Slicing

Decision Trigger

Interest Trigger

How deep do you go?They are real people (not attributes!)

EXERCISE

Jobs Obstacles Goals Current Solution

Customer Slicing

Decision Trigger

Interest Trigger

How deep do you go?They are real people (not attributes!)It’s clear where to find them.

EXERCISE

Jobs Obstacles Goals Current Solution

Customer Slicing

Decision Trigger

Interest Trigger

How deep do you go?They are real people (not attributes!)It’s clear where to find them.You’ll walk away if they aren’t a good fit.

EXERCISE

Limit your work in progress.

Seeing the big picture.

7 DomainsGrowth EnginesBusiness Model Design

Big Picture Lenses

7 ways to die.Choose none.

IndustryMarket

Macro

Micro

Trends

Connections

Alignment Skills

Establishment

Customer Need & Behaviour

Lock-in & copyability Modified from 7 Domains,

From The New Business Road Test, by John Mullins

StickyPaid AcquisitionViral

Understanding growth

Growth Engines,from The Lean Startup by Eric Ries

DISCUSSION

Business Model Design

Navigating through options, hypotheses & environmental changes.

Understanding dynamics between parts & articulating a clear story.

Parts

Whole

Progress

Checklists & dashboards1

2

3

Faster production

Production

Clothinglabels &

distributors

Faster production

Production

Clothinglabels &

distributors

Faster tomarket

Faster production

Production

Clothinglabels &

distributors

Faster tomarket

Faster production

Production

Production fees

Faster production

Production

Designers

Consumers

Fan BaseFaster production

Production

Designers

Consumers

Fan Base

You design -

we do the rest.

Faster production

Production

Pool of talent

Designers

Consumers

Fan Base

You design -

we do the rest.

Faster production

ProductionOnlinetools

Pool of talent

Designers

Consumers

Fan Base

You design -

we do the rest.

Faster production

Production

Personalsupport

Onlinetools

Pool of talent

Designers

Consumers

Fan BaseFacebookFacebook

You design -

we do the rest.

Faster production

Production

Personalsupport

Onlinetools

Pool of talent

Designers

Consumers

Fan Base

Selling Clothes

FacebookFacebook

You design -

we do the rest.

Faster production

Production

Personalsupport

Onlinetools

Pool of talent

Designers

Consumers

Fan Base

Selling Clothes

FacebookFacebook

You design -

we do the rest.

Faster production

Production

Personalsupport

Onlinetools

Pool of talent

Emerging

Designers

Designers

Consumers

Fan Base

Selling Clothes

FacebookFacebook

You design -

we do the rest.

Faster production

Production

Personalsupport

Onlinetools

Pool of talent

Emerging

Designers

Good for vision, inventing and improving.

Bad for getting stuck on specifics that don’t work.

Tenacity

Platform

Tuesday, 14 June 2011

Platform

Tuesday, 14 June 2011

Platform

Tuesday, 14 June 2011

Platform

Tuesday, 14 June 2011

Mass customisation

Value-basedpricing

App sale +in-app purchase Subscription

Transactional

Multi-sidedmarket

Licensing

CrowdsourceAd-supported

Event-supported

SaaS

Bundling

Viral

Direct-over-viral

Purchase-timing

Startups are

learning organisations.

2 stages of learning

Discovery Validation

2 stages of learning

Learn Confirm

2 stages of learning

Ask Sell

2 stages of learning

Observe Experiment

Does anyone care at all?

Do we understand the industry?

Does anyone care at all?

Do we understand the industry?

Will any pay for it?

Are we building the right product?

Image by wstryderImage by wstryder

Image by wstryderImage by wstryder

A customer wakes up, turns on their computer, logs in to their email using a new program they use and love.

Their free trial is over. The program asks them to pay. They say no.

Why?

One day...

www.foundercentric.com

Where is the love?

Anyone will tell you that your idea is great if you annoy them long enough.

Dear Mom,

Don’t you think I’m great?

Love,Your son

Actually, not just your mom lies.Your customers are full of shit too.

www.foundercentric.com

Past, not futureFact, not opinionSpecifics, not general

(Talk about their life, not your idea.)

The Mom Test

www.foundercentric.com

Good or bad questions?

❝

❞

Do you think it’s a good idea?

❝

❞

Do you think it’s a good idea?

❝

❞

Would you buy a product which solved this problem?

❝

❞

Would you buy a product which solved this problem?

❝

❞

How do you currently deal with this problem?

❝

❞

How do you currently deal with this problem?

❝

❞

How have you dealt with this problem?

❝

❞

When does this problem pop up?

❝

❞

When does this problem pop up?

❝

❞

When’s the last time that happened?

❝

❞

What makes this time-consuming or go off-track?

❝

❞

What makes this time-consuming or go off-track?

❝

❞

Has this ever been more time-consuming than normal or gone off-track?

How’s it going with .... ?

Interesting. Tell me more about that.

Can we go back to what you were saying about...?

Hi.

www.foundercentric.com

EXERCISE

❝

❞

Please show me how you...

❝

❞

Please show me how you...

❝

❞

Please tell me how... I’m trying to learn how you...

❝

❞

Please tell me how... I’m trying to learn how you...

❝

❞

Talk me through the last time you had this problem.

❝

❞

Talk me through the last time you had this problem.

❝

❞

What did you try to do about it?

❝

❞

What did you try to do about it?

Their words - not yours!One phrase per card.Pair. One interviewer, one notetaker.

Recording the right stuff.

Person Job Problem Measure Solution Excited Guilty Upset

Important signals

❝

❞

Please help me understand...

❝

❞

Please help me understand...

❝

❞

How much would you pay for this?

❝

❞

How much would you pay for this?

❝

❞

Can I ask why?

❝

❞

Can I ask why?

❝

❞

Talk me through how you decide.

❝

❞

Talk me through how you decide.

❝

❞

Talk me through how you decided.

❝

❞

How much money does this problem cost you?

❝

❞

How much money does this problem cost you?

❝

❞

How much money does this problem cost you?

❝

❞

How much should we charge?

❝

❞

How much should we charge?

❝

❞

What’s your budget?

❝

❞

What’s your budget?

❝

❞

How soon can you start?

❝

❞

How soon can you start?

❝

❞

What would need to happen before you could really start using it?

❝

❞

What would need to happen before you could really start using it?

❝

❞

Ever had any problems or delays getting something like this going/bought?

❝

❞

Who else should I talk to?

❝

❞

Who else should I talk to?

Opinions are worthless.

Always know your big 3 questions.

Tweetable TextHow do authors pre-build their customer list?How do authors test copy and learn about their readers?How do authors prioritise their time when writing?

LeancampWhat awareness channels can we partner with?What do people learn at Leancamp that they apply?What do famous thought-leaders get out of conferences?

What are your Big 3 right now?Does it do what it says on the tin?Can we make it usable enough?Do people really, truly want it?What could kill you?

Take 3 minutes to write them down.Are they to learn or confirm?

EXERCISE

2 stages of learning

Discovery Validation

2 stages of learning

Learn Confirm

So, we had a meeting!

❝

❞Claudia

Sounds great. I love it!

❝

❞Claudia

Sounds great. I love it!

❝

❞Jeremy

Brilliant -- let me know when it launches!

❝

❞Jeremy

Brilliant -- let me know when it launches!

Compliment?Stalling tactic?

They don’t care. :(

❝

❞Jeremy

There are a couple people I can intro you to, when you’re ready.

❝

❞Jeremy

There are a couple people I can intro you to, when you’re ready.

Partial commitment?

Validate by going for full commitment.

❝

❞Claudia

I would definitely buy that!

❝

❞Claudia

I would definitely buy that!

DANGER!

Meetings succeed when they advance to the next step.

Examples of advancement> Permission to contact again> Clear next meeting> Introduction to decision-maker> Commitment to run a trial> Pre-purchase

Real learning comes from

Facts Commitment

www.momtestbook.comwww.signal.ly

www.custdevcards.com

Course-correction

“I wish I knew that sooner.”

Building with a heartbeat.

Build

Learn

Measure

Minimum ViableWhat is the minimum thing I need to build

to prove or disprove this?

Pick a learning goalWhat big make-or-break risks or idea is the one you want to nail down this week?

(Hint: use the Canvas or metrics to make sure it’s relevant.)

EXERCISE

Start with your learning goal.

Pick a learning goal.Pick a measurement.Draw your MVP on a blank sheet.

Build

Learn

Measure

IterationDo LessImprove the big pictureLearn, then confirmCourse-correction

Principles

Build

Learn

Measure

2 stages of learning

Learn Confirm

Make it your own.

So, Prezi goes into education...

EXERCISE

What are your Big 3 right now?Does it do what it says on the tin?Can we make it usable enough?Do people really, truly want it?What could kill you?

Take 3 minutes to write them down.Are they to learn or confirm?

EXERCISE

2 stages of learning

Learn Confirm

How’s it going with .... ?

Interesting. Tell me more about that.

Can we go back to what you were saying about...?

Hi.

www.foundercentric.com

Person Job Problem Measure Solution Excited Guilty Upset

Their words - not yours!One phrase per card.

Pair. One interviewer, one notetaker.

Recording the right stuff.

Past, not futureFact, not opinionSpecifics, not general

(Talk about their life, not your idea.)

The Mom Test

www.foundercentric.com

Salim Virani@SaintSalsalim@foundercentric.com

Rob Fitzpatrick@robfitzrob@foundercentric.com

www.foundercentric.com

Thanks!