An effectual and lean (young) story

http://www.meetup.com/lean-Startup-effectation/events/218590909/

What I do

• Product and Tech / associate @mobileangelo

• Lean Product Management consultant(Lean Startup principles for big corp.)

• Product Management association president@WeDoPM

Kivahu : 30K€, 8 months

A******** : 250K€, 12 months

MobileAngelo ? : 2,5K€

Few fast crashes

Kivahu A******* Mobile Angelo

First customer contact

none 1 year 2 days

Money 30 K€ 250K€ 400 €

People 3 3 > 7 2 > 3

Position full time 0 > full time 0 > part time

Revenue 0 0 few K€ / months

Facts

(ballpark figures)

Recharge - Repair - Resell

It all began by an experience I wanted to scale

Recharge

Repair

Resell

http://app.mobileangelo.fr

How I discovered Lean Startup and Effectuation principles

Both are very simple at first look :

MEANS GOALS INTERACTIONS COMMITMENTS

NEW MEANS

NEW GOALS

Both aims at :

Start (and grow) a business Be in control

Pivoting

Lean Startup :

BY EXPERIMENTING (and adapting)

Effectuation :

BY INTERACTING (and adapting)

How ?

Same philosophy. Different approach.

Common sense ?

Some people may think Lean Startup and Effectuation are « common sense ».

But only people who have tried to build a startup know that, in the middle of the storm, what is lacking the most is « common sense » :)

So understanding these principles is fundamental.

So let’s review these principles and how I’ve tried to apply them.

‣ Agile Product Development ‣ Customer Development ‣ Scientific approach ‣ Waste reduction ‣ Use of commodities

Agile Product Development

Delivering the same value,

but with an increasing level of quality.

December 2013

June 2014

December 2014

+

Being agile, even with the content :)

December 13 June 14

Customer development

Client ? User ?

We chose our first « customers » by the shortest feedback loop.

Unfortunately, people don’t break their iphones that often, so we focused first on our partners (the

repairers) as our first client.

What could we sell them ?

Filtering our clients too

We moved from ‘any’ iPhone owner to busy business people for whom their device is critical.

Filtering our partners

We moved from handymen to professional iPhone repairers.

0

22,5

45

67,5

90

Exp 1 (qual.) Exp 2 (qual.) Exp 3 (qual.) Exp 4 (quant.)

55

152027 32

853

Positive Negative

How we are refining our partner base : more details on http://bit.ly/1CITALm

Use of commodities

• Wordpress • WPEngine • Strikingly

• Wufoo

• 99design • Invision

• Mandrill • Webhooks

• Slideshare

• Aircall • iMessage

• 3Scale • Run Above • Twilio • FrontApp

About 200€ / month

‣ Means ‣ Affordable loss ‣ Co-creation partnership ‣ Leverage contingencies ‣ Control vs Predict

1. Means (Bird in hand)

November 2013

Let’s see if there is some demand and offer !

Who I am ? What I know ? Whom I know ?

Passionate maker Former startuper Unmet needs SEM expert

One repairer

2. Affordable loss (focus on the downside risk)

November 2013

I had only few € to risk (and also my relationship)

+ +

3. Co-creation partnership (Patchwork kilt)

•My partner ! •Repairers •Parts reseller •Insurances •Concierges

Meeting all these people changed our business a lot.

4. Leverage contingencies (make lemonade)

Not eligible to innovation program ? let’s build innovation !

Some repairs are not satisfied with our offer ? Let’s focus our core customer base and grow it.

5. Control vs Predict (pilot in the plane)

•Staying focus on what we do the best

•Avoiding distractive business ideas

Typical success curve

1. Discovery

Product / Market fit

traction

5+ years2+ years

value creation

temps

2. Growth

growth

hyper growth / scale B

A

What it actually looks likes from the ground

B

A

What it looks likes from above

B

A

So many ways ! Is the line the shortest path ?

B

A

Discovery is always longer than you imagine

We have to adapt

Nothing alike the « right » track

A

B

Back and forth between Excitation and Anxiety

Lean Startup and Effectuation teach us to be in control at any time, and stop predict the future.

So we have to move iteratively, step by step.

Keeping the vision intact, but focus on immediate action and progress consistently.

A

B

Like an explorer : don’t go further than

the danger zone.

A

B

And iterate.

A1

A

B

And iterate.

A1

A2

A

B

And make small mistakes.

A1

A2 A3

This is how we …

• Change our customers several times,

• Changed our offers, • Adapted our final target.

Cut

2+ ans

Problem / Solution fit

Product / Market fit

And cut again

Product / Market fit

reduce client risk reduce

product riskreduce

market risk

Not in a specific order

Specific to our business : focusing on one area, proving the business then scale.

Next slides are pure anticipation for Mobile Angelo, but is based on my past experiences.

Traction

We’ll need to adapt :

Will our vehicle adapted to this phase when we reach it ?

Growth

We’ll need to adapt again

You don’t build an A320 when you need it. It

has to be anticipated (scale the company)

For fun : my first MVP

Short story that summarizes the best « Business »

Infos

• effectuation.org

• http://runninglean.co

• http://mooc.em-lyon.com

@mobileangelo @ssacard

www.mobileangelo.fr