Steve Barsh on De-Risking and Key Assumptions for Wharton Biz Plan Competition Community Feb 2013
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Copyright © 2009-2013 by Steve Barsh. All Rights Reserved. Lean Startups From Idea to Traction: Tricks & Traps for Maximizing Success Steve Barsh [email protected] * +1.215.888.2101 @sbarsh Jeff Deville [email protected] * +1.484.278.1852 @jeffdeville 1 Monday, February 18, 13
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This is part 1 of the presentation given Feb 2013 to Wharton undergrad and MBA students participating in the Wharton Business Plan Competition (BPC). Previous BPC winners have included companies like Warby Parker (eyewear).
Transcript of Steve Barsh on De-Risking and Key Assumptions for Wharton Biz Plan Competition Community Feb 2013
Copyright © 2009-2013 by Steve Barsh. All Rights Reserved.
Lean StartupsFrom Idea to Traction:Tricks & Traps forMaximizing Success
Steve [email protected] * +1.215.888.2101
@sbarsh
Jeff [email protected] * +1.484.278.1852
@jeffdeville
1
Monday, February 18, 13
Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Observations
• Don’t understand key assumptions
• Don’t de-risk before• Building the product• Pitching
• Don’t use out-of-box techniques
• Ask for money too early• Look for validation from investors
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Monday, February 18, 13
Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
3 – 7 Key Assumptions
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Monday, February 18, 13
Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
De-Risking Goals
• Convert assumptions into knowledge
• At lowest cost
• As quickly as possible
• Decrease assumptionsto increase value
• Consume intellectual capitalbefore outside capital
• Succeed or fail quickly4
Monday, February 18, 13
Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Stop Waving, Start Pointing!
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Monday, February 18, 13
Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Experiment
• Hypotheses
• Prove or Disprove
• Build -- Release, measure, learn, iterate
• Research
• Valid proxies
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Monday, February 18, 13
Example of Experimentation to De-risk Key Assumptions
✓Used when full guest details don’t flow through the supply chain✓Like “checking in” for a flight or cruise✓Collects all guest arrival and contact details✓Coordinates a smooth arrival
7 Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Monday, February 18, 13
Copyright © 2009-2013 by Steve Barsh & Jeff Deville. All Rights Reserved.
Things to think about
1. Don't debate, A/B test. (applies to software, messaging / positioning (e.g., Adwords))
2. Innovate in real time3. Get an unfair advantage (mentors, advisors, Board, LinkedIn, University, wherever you can)
4. Ask for advice, not money. (1 mouth, 2 ears)5. What are you learning?6. What are your key assumptions?7. What can you prove with $0?8. Minimum viable product (MVP) -- get things to users.
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Monday, February 18, 13
