Lean Startup AppliedThursday, March 21st, 2013

Who Am I?Sam Hysell@shysell13

Strategic Partnerships @ LSM

OUR MISSION:ADVANCE THE SCIENCE OF ENTREPRENEURSHIP

What You Got Yourself Into

What It Means to Be LeanWhy Startups Fail

Running a Lean Startup for Social GoodValidation Board

Lean Manufacturing

The expenditure of resources for any goal other than the creation of value for the end

customer is wasteful

What is Lean Startup?

A process involving rapid and iterative experimenting to test assumptions and develop

a product that customers actually want.

What is Lean Startup?

A process involving rapid and iterative experimenting to test assumptions and develop

a product that customers actually want.

What is Lean Startup?

A process involving rapid and iterative experimenting to test assumptions and develop

a product that customers actually want.

What is Lean Startup?

A process involving rapid and iterative experimenting to test assumptions and develop

a product that customers actually want.

Startups that succeed are those that manage to iterate enough times before running out of

resourcesEric Ries

Focus on what works, but more importantly, what doesn’t, so you can pivot before you’re out

of resources.

Pivot:A change in strategy without a change in vision

Why Do Most Startups Fail?

Most of the time, it’s not because the product/service couldn’t be built...

It’s because nobody wanted it!

No business plan survives first contact with a customer

Steve Blank

Neonurture

Neonurture“Design That Matters learned an important lesson from the experience -- that good design must keep in mind

who will procure equipment, who will be using it, as well as the myriad ways it could be used incorrectly. As

Timothy says, "There's no such thing as a dumb user; there are only dumb products.”

“My Solution is Awesome”

Not can it be built

but...

Lean Startup

Should it be built?!Ex. Neonurture

Fail Fast. Succeed Faster.

Invalidate My Assumptions

Get Out of The Building

What Takes You 6 Months Took Me 3

Days

A startup is a human institution designed to deliver a new product or service under

conditions of extreme uncertainty.

Eric Ries

Replace uncertaintywith data

Your mistake was in unthinkingly treating what you imagined as though it were an accurate

representation of the factsDan Gilbert

Feynman Chaser - The Key to Science

http://youtu.be/b240PGCMwV0

So You Have a Good Idea?

Prove It!

3 Startup Stages

- Pre-product Validation- Product Building- Scale

Turn assumptions into hypothesis

Step 1 of pre-product validation

Customer Development

Customer Development

Problem/Customer fit. No solutions.

Customers don’t care about your solution.They care about their problems.

Dave McClure

Customer Development

How?

Getting out of the building (GOOB’ing)

Why?

Experiments designed to invalidate your riskiest assumption

Minimum Viable Product (MVP)

Maximize customer learnings, minimize waste

MVP Stages

- Exploration - Find Pain- Pitch - Measure Demand- Concierge - Productize

MVP Stages

- Exploration - Find Pain- Pitch - Measure Demand- Concierge - Productize

ExplorationGet your idea out of your head,

go to where your customers are.

Talk to them. And be prepared to prove

yourself wrong.

Pitch - Measure Demand

Value Propositionin exchange for

Currency

MVP Stages

- Exploration - Find Pain- Pitch - Measure Demand- Concierge - Productize

Skillshare

Skillshare - Concierge

Food On The Table

Any Service