LEAN Startups: a primer

LearnEntrepreneurial

AgilityNow!

the “Lean” movement

• … just a few key names:• Eric Ries • Steve Blank • Dave McClure and other cool cats

• …BUT… Is this really that new?• Isn’t this what smart entrepreneurs ALREADY

do? How smart entrepreneurs ALREADY think?

A few quick thoughts…• “Lean” doesn’t mean cheap.. It means FAST• “Lean” could just as easily be called “Learn”!

WHEN to be Lean?• Extreme uncertainty• Significant ambiguity (Type III errors)• Startups – scalable startups• Social / Sustainable / BOTP• New Product Development / Tech Transfer

What is a “Startup”..really?

• A startup is simply the vehicle for figuring out a sustainable, repeatable, scalable business model

• This is no time for a business plan… takes very different planning (and thinking)

• Finding your Scalable Business Model:– Test each critical assumption in your model– Measure (qual & quant) ruthlessly– “Pivot” quickly– Iterate

Minimize TOTAL time through the loop

LEARN BUILD

MEASURE

IDEAS

CODEDATA

Source: Eric Ries, The Lean Startup

• “Failing fast” is also a misnomer – “fail FORWARD” which means…

• Better your assumptions fail… than your biz

• Forces attention on Value (benefits>>features)

• Build Test/Measure Learn (L,R,R)

What’s a Business Model?

• Three key questions to answer – identify all key assumptions for each:

–1) Value Proposition

–2) Value Delivery

–3) Value Capture

The Process

• from Steve Blank: The search (SBM) we can call “Customer Development”

• Implementing SBM = “Agile Development”

Build Measure Learn

• BUILD: Identify & Test• Minimum Feature Set• Minimum Viable Product (MVP)

• MEASURE: • Find out what customers love… and especially hate

(Kathy Sierra vs Dave McClure)

• LISTEN! (to your metrics & your customers)• LEARN:

• Pivot quickly & decisively

Implications for us?

• “Lean” epitomizes entrepreneurial mindset [VERY different, BT: Assume & embrace uncertainty & ambiguity!]

• Applies to any high-uncertainty/ambiguity situation– Social ventures, tech transfer, NPD

• Mindset focuses on:– Benefits, not features… (not ‘inventors syndrome’)

– Value proposition & value delivery co-evolve– Customer, et al. as true partner

• Iterative, Co-Evolving Process– Not exactly a stage-gate (eg, early Goldsmith)– WAIT! (expert mentoring)

More implications…

• New insights into expert entrepreneurial mindset – needed by mentors, ecosytem– Experiential = Essential (>>hands-on)

• Incubating Immersion– Startup Weekend– Nebula Shift model

• Counseling Mentoring– TechStars, Accelerators

• Celebrate & Educate! (TechBoise, ESTech, ITC)

for more info…The Gurus:• Eric Ries

(@ericries, www.startuplessonslearned.com)• Steve Blank (@sgblank, www.steveblank.com)• www.sllconf.com

Local Lean Fanatics, er, Aficionados, well…Fanatics:• Kevin Donaldson (@kevnd, kdonaldson@balihoo.com )• Norris Krueger (@entrep_thinking, norris.krueger@gmail.com)• Jason Christensen (@jasonc411)• Eric Shaver (@ericshaver)