[Lean 101] Introduction to Lean - Preparing a Lean Canvas

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100. Introduction to Lean Making sense of it all Nikos Palavitsinis, Agro-Know

Transcript of [Lean 101] Introduction to Lean - Preparing a Lean Canvas

Page 1: [Lean 101] Introduction to Lean - Preparing a Lean Canvas

100. Introduction to Lean

Making sense of it all

Nikos Palavitsinis, Agro-Know

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Lean AKademy, March-April, 2014

Startups

• Start-ups are NOT smaller versions of a bigger company…

• As such, they should not be trying to create value with the same techniques or tools

• They operate in a highly risky, ever changing environment, with limited resources

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Lean AKademy, March-April, 2014

101. Why start-ups fail

• The entrepreneurs live in a vacuum• Their idea doesn’t uniquely solve a big problem• They run out of cash• They invent concepts and not products• They listen to bad advice from the wrong

people • The market moves on them, or moves in an

unexpected way

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Lean AKademy, March-April, 2014

Rules of the Lean AKademy

• You can be wrong (but you will correct yourself)• Be concise, not a philosopher• Think in the present• Product, customer, value• Experiment– Real one, not an academic exercise… not any more!

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Lean AKademy, March-April, 2014

102. Ideas’ Pool

• We have some ideas already

• You have some of your own

• Let’s look at them…

• Pick one!

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103. Think about your customer

• No point in discussing ANY idea if there’s no one interested in paying for it

• You have 10’ to think of the customers that would be willing to buy your product

• NOT users or your mom…!Customers, paying customers!!

• Write them down on a separate A4 paper

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Think of…

• Early adopters– They are the first ones that will rush to pay for

your amazing product!• Also other roles that interact with your

product

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104. Identify their top 3 problems

• Identify three really important problems that your idea/product will solve

• You have 10’ to think of the problems and existing alternatives

• Write them down on a separate A4 paper

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Example

• Problem: Difficulty in coordinating project proposal writing

• Alternative #1: e-mail• Alternative #2: skype

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Lean AKademy, March-April, 2014

105. Unique Value Proposition

• What is the one compelling message that will make your customers buy your product?– Be different, but make sure your difference matters!– Target early adopters– Focus on finished story benefits– Pick your words carefully & own them!– What, who & why– Study other good UVPs– Create a high-concept pitch

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Example

• Message = End result customer wants + specific period of time + address objections

• Hot fresh pizza delivered to your door in 30 minutes or it’s free.

• You have 10’ to document on a separate A4 paper

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106. Solution

• Customer interviews will change your solutions more often than you think

• Be quick about defining the first set of solutions (10’)

• Bind a solution to your problem as late as possible

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Coffee?

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Lean AKademy, March-April, 2014

107. Reaching your audience

• Failing to build a path to customers, is #1 reason why start-ups fail

• Your initial goal is to learn, not to scale, so at first it’s OK to rely on the “easy” channels

• Channels may change as your product idea matures through time

• Use a new A4 paper – 5’

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• Freer VS Paid– Social media, Google AdWords

• Inbound VS Outbound– Blogs, Ebooks, White papers, Webinars– SEM, Print/TV Ads, Cold calling

• Direct VS Automated– First sell manually, then automate

• Direct VS Indirect– First sell the product yourself, then let others

• Retention before Referral– Build a remark-able product

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108. Revenue Streams

• How are you going to get money? • Think of how much you will sell your first

version of your product (MVP)• Don’t delay the “money” question…

• New A4 paper, 5’

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Why?

• Price is part of the product– It has the power to change its perception

• Price defines your customers– Which customers you want to attract?

• Getting paid is your first validation– The hardest action you can ask from

a customer early on

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109. Cost Structure

• How much will it cost you to build it? Roughly• Cost for research• Cost for building the product• Operational costs

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Breaking even

• Since start-ups run on a lean budget, it’s crucial to make sure that you get some income going on, before you ran out of money!

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110. Metrics, metrics, metrics

• Acquisition– The point where an unaware visitor turns into an

interesting prospect• Activation– The point where the customer has

the first gratifying experience

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Metrics

• Retention– Repeated use/engagement with your product

• Revenue– Events that get you paid

• Referral– Customers refer your product to others

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Coffee?

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Lean AKademy, March-April, 2014

111. Unfair advantage

• What cannot be copied and/or stolen from your product?– Imagine that your team steals the idea and opens

a second company next door. What is the one thing they cannot take from you?

• 5’ and a new A4 paper

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Some thoughts

• None of these companies were first movers: Ford, Toyota, Google, Microsoft, Apple, or Facebook

• Anything worth copying, will be copied• Insider information, a dream team, large

network effects, community, existing customers, etc.

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For now…

• It’s ok to leave this box empty for now…

• Remember it’s here to make you really think about how you can/will make yourself different and make your difference matter.

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112. Putting Pieces Together

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112. Putting Pieces Together

Revenue StreamsCost Structure

Problems Unfair Advantage

CustomersSolutions

Metrics Channels

Unique Value Proposition

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113. Reflect, Research, Refine

• Reflect on your experience so far

• Research to understand your Canvas better

• Refine points that seem a bit unclear

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114. Takeaways & Assignments

• Your comments for the process… • How was it? Easy? Weird? Quick? • Assignments– Browse through Chapters 1-2 of Running Lean– Complete your Lean Canvas on paper– Put it online here: http://LeanCanvas.com

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Questions?