Post on 21-Oct-2014
description
Lean Startup Essentials
Lukas Fittllukas@fittl.com
Slides licensed under CC-BY-NC-SA.
Lean Startup is trademarked by Eric Ries.Business Model Canvas is created by Alex Osterwalder
and licensed under CC-BY-SA.
Lean Startup Essentials
Thursday, 27 October 2011
Agenda
• #1 Whats this all about?
• #2 Document your business & market
• #3 How to test B2B assumptions
• #4 How to test B2C assumptions
Lean Startup Essentials #1: Introduction
Thursday, 27 October 2011
Whats the Lean Startup?
• Reduce the (unavoidable)chaos in a startup
• Increase your rate of success
•Test your business assumptions
#1: IntroductionLean Startup Essentials
Eric Ries - The Lean Startuphttp://lean.st
Thursday, 27 October 2011
Most startups failfrom a lack of (paying) customers.
#1: Lean StartupLean Startup Essentials
Thursday, 27 October 2011
Why?
Wrong assumptions about your customer, the market, how much
they will pay, etc.
#1: Lean StartupLean Startup Essentials
Thursday, 27 October 2011
Startup: Temporary organization used to
search for a repeatable and scalable business model.
As defined by Steve Blank.
#1: Lean StartupLean Startup Essentials
Thursday, 27 October 2011
We needstructured learning
before we execute.
#2: The Lean CanvasLean Startup Essentials
Thursday, 27 October 2011
Document Your Business
#2: The Lean CanvasLean Startup Essentials
Thursday, 27 October 2011
The Lean Canvas
#2: The Lean CanvasLean Startup Essentials
Alex Osterwalder - Business Model Generationhttp://businessmodelgeneration.com
Ash Maurya - Running Leanhttp://book.runningleanhq.com
Thursday, 27 October 2011
Thursday, 27 October 2011
#2: The Lean CanvasLean Startup Essentials
Problem
Top 3 problems
Solution
Top 3 features
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unfair Advantage
Can’t be easily copied or bought
Customer Segments
Target customers
Problem
Top 3 problems
Key Metrics
Key activities you measure
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying Channels
Path to customers
Customer Segments
Target customers
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Thursday, 27 October 2011
Problem
• The top 3 problems the customer is facing today,within a given context
• These might be things they’ve already started building in house, because there is an active need
#2: The Lean CanvasLean Startup Essentials
Problem Key Activities Value PropositionValue Proposition
CustomerRelationships
Customer Segments
Problem
Key Resources
Value PropositionValue Proposition
Channels
Customer Segments
Cost StructureCost StructureCost Structure Revenue StreamsRevenue StreamsRevenue Streams
Thursday, 27 October 2011
Customer Segments
• Narrow group of people that buy/use your product
• Marketplace biz models =2 cust segmens (or more)
#2: The Lean CanvasLean Startup Essentials
Key Partners Key Activities Value PropositionValue Proposition
CustomerRelationships
Customer Segments
Key Partners
Key Resources
Value PropositionValue Proposition
Channels
Customer Segments
Cost StructureCost StructureCost Structure Revenue StreamsRevenue StreamsRevenue Streams
Thursday, 27 October 2011
Value Proposition
• Single, clear, compelling message that turns an unaware visitor into an interested prospect
• Your elevator pitch
• What you put on yourlanding page
#2: The Lean CanvasLean Startup Essentials
Key Partners Key Activities Value PropositionValue Proposition
CustomerRelationships
Customer Segments
Key Partners
Key Resources
Value PropositionValue Proposition
Channels
Customer Segments
Cost StructureCost StructureCost Structure Revenue StreamsRevenue StreamsRevenue Streams
Thursday, 27 October 2011
Solution
• Whats the Minimum viable product (MVP) ?
• Minimal set of functionality to solve each problem of the customer
#2: The Lean CanvasLean Startup Essentials
Key Partners Key Activities Value PropositionValue Proposition
CustomerRelationships
Customer Segments
Key Partners
Key Resources
Value PropositionValue Proposition
Channels
Customer Segments
Cost StructureCost StructureCost Structure Revenue StreamsRevenue StreamsRevenue Streams
Thursday, 27 October 2011
Channels
• How does the customer learn about your product?
• B2B and B2C vastly different!
• SEM, SEO, Friend Invites, Social Media, Direct Sales, Tradeshows, PR, Content Marketing, etc.
#2: The Lean CanvasLean Startup Essentials
Key Partners Key Activities Value PropositionValue Proposition
CustomerRelationships
Customer Segments
Key Partners
Key Resources
Value PropositionValue Proposition
Channels
Customer Segments
Cost StructureCost StructureCost Structure Revenue StreamsRevenue StreamsRevenue Streams
Thursday, 27 October 2011
Revenue Streams
• How much is the problem worth to the customer?
• Not how much it costs you to implement the solution
• Avoid Free and FreemiumIts just a marketing tactic!
#2: The Lean CanvasLean Startup Essentials
Key Partners Key Activities Value PropositionValue Proposition
CustomerRelationships
Customer Segments
Key Partners
Key Resources
Value PropositionValue Proposition
Channels
Customer Segments
Cost StructureCost StructureCost Structure Revenue StreamsRevenue StreamsRevenue Streams
Thursday, 27 October 2011
Document Your Market
#2: Document Your MarketLean Startup Essentials
Thursday, 27 October 2011
Example: Music BusinessGEMA & Co
Artist
Tour Merchandise Sales
Record Label
Publisher
Booking Agent fixed fee / show
Promoter
revenue share,details depending on offer
Ticket SalesBeverage Sales
Venue sales priceexcl. cost for record
Usage in TV productions, ...
50/50 Cut
Digital Distributor
PRRadio, Print, Internet, TV
emusic SpotifyiTunes
Distributor
In-Store Record Sales
almost nothing nothing~ 50c/song
Fan
Record Pressing
Label Online Shop Sales
excl. shipping expenses
Artist Manager
#2: Document Your MarketLean Startup Essentials
Thursday, 27 October 2011
Example: Hosting Industry
Hosting Industry
Technology Providers
onapp
cPanel VMware
Plesk Virtuozzo KVM
Xen
Controlpanels Virtualization
Customers
Cloud/VPS Hosting Managed HostingShared Hosting Platform as a Service
Mass Market
Agencies
SuccessfulWeb Apps
DevelopersNew/FailedWeb Apps
Company Culture
Support Company Size
Storage Hardware
Focus on PHP/Rails/etc. Location
#2: Document Your MarketLean Startup Essentials
Thursday, 27 October 2011
These documents are alive and easy to update
(not like your rusty old business plan)
#2: Document Your Business & MarketLean Startup Essentials
Thursday, 27 October 2011
Test Your B2B Assumptions
#3: Testing B2B AssumptionsLean Startup Essentials
Thursday, 27 October 2011
http://steveblank.com
Lean Startup Essentials Literature
Listen to customers.
Do NOT executeon a made-up plan.
Thursday, 27 October 2011
Customer Interviews
30 min in-person withyour prototypical customer
People like talking about their field - explore their worldview.
Lean Startup Essentials #3: Testing B2B Assumptions
Thursday, 27 October 2011
How to conduct an interview
Lean Startup Essentials
DO NOT sell them your solution
#3: Testing B2B Assumptions
1. Set context & tell your story2. Tell your problem hypothesis 3. Listen to their worldview4. Ask for follow up / references
Thursday, 27 October 2011
Online Market Tests:
Google AdwordsFake Landing Page with
“Signup to be notified when we launch”“Can we call you to ask a couple of Qs?”
Lean Startup Essentials #2: Customer Discovery
Thursday, 27 October 2011
Amy Hoy’sSales Safari:
Lurk in online forums of your customer segment, learn how they
talk about products & benefits
Lean Startup Essentials #2: Customer Discovery
Thursday, 27 October 2011
Test Your B2C Assumptions
#4: Testing B2C AssumptionsLean Startup Essentials
Thursday, 27 October 2011
Build-Measure-Learn
#4: Testing B2C AssumptionsLean Startup Essentials
Thursday, 27 October 2011
Iterate quickly through the loop and improve your
engagement & retention metrics.
Lean Startup Essentials #4: Testing B2C Assumptions
Thursday, 27 October 2011
Thanks!
Lean Startup Essentials
Thursday, 27 October 2011