Lean Startup Essentials - Le Camping Edition

Lean Startup Essentials

Lukas [email protected]

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.


Thursday, 27 October 2011

mailto:[email protected]

mailto:[email protected]

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


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


http://lean.st

http://lean.st

Most startups failfrom a lack of (paying) customers.

#1: Lean StartupLean Startup Essentials


Why?

Wrong assumptions about your customer, the market, how much

they will pay, etc.



Startup: Temporary organization used to

search for a repeatable and scalable business model.

As defined by Steve Blank.



We needstructured learning

before we execute.

#2: The Lean CanvasLean Startup Essentials


Document Your Business



The Lean Canvas


Alex Osterwalder - Business Model Generationhttp://businessmodelgeneration.com

Ash Maurya - Running Leanhttp://book.runningleanhq.com


http://businessmodelgeneration.com

http://businessmodelgeneration.com

http://book.runningleanhq.com

http://book.runningleanhq.com


Problem

Top 3 problems

Solution

Top 3 features

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




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


Cost Structure


Revenue Streams

Revenue ModelLife Time ValueRevenue Gross Margin

Revenue Streams


Revenue Streams



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


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


Customer Segments

• Narrow group of people that buy/use your product

• Marketplace biz models =2 cust segmens (or more)


Key Partners Key Activities Value PropositionValue Proposition


Customer Segments

Key Partners

Key Resources


Channels

Customer Segments



Value Proposition

• Single, clear, compelling message that turns an unaware visitor into an interested prospect

• Your elevator pitch

• What you put on yourlanding page




Customer Segments

Key Partners

Key Resources


Channels

Customer Segments



Solution

• Whats the Minimum viable product (MVP) ?

• Minimal set of functionality to solve each problem of the customer




Customer Segments

Key Partners

Key Resources


Channels

Customer Segments



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.




Customer Segments

Key Partners

Key Resources


Channels

Customer Segments



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!




Customer Segments

Key Partners

Key Resources


Channels

Customer Segments



Document Your Market

#2: Document Your MarketLean Startup Essentials


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



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



These documents are alive and easy to update

(not like your rusty old business plan)

#2: Document Your Business & MarketLean Startup Essentials


Test Your B2B Assumptions

#3: Testing B2B AssumptionsLean Startup Essentials


http://steveblank.com

Lean Startup Essentials Literature

Listen to customers.

Do NOT executeon a made-up plan.




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


How to conduct an interview


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


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


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


Test Your B2C Assumptions

#4: Testing B2C AssumptionsLean Startup Essentials


Build-Measure-Learn

#4: Testing B2C AssumptionsLean Startup Essentials


Iterate quickly through the loop and improve your

engagement & retention metrics.

Lean Startup Essentials #4: Testing B2C Assumptions


Thanks!



Lean Startup Essentials - Le Camping Edition

Business

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