Lean Startup

Presented by Quang Nguyen (Sebastian) , MBA, PMP, TESOL

Bio
Co-founder of Passed Pawns LLC, a startup consulting firm Business Advisory of Contemi, an insurance software from Norway Instructor of Business Admin at Saigon Tech Instructor of Project Management at FMIT www.facebook.com/qtheboss

Agenda
What Why Where When Who How

Warning
I am here to learn, not to teach I do not like good words. I love hear you says No, youre wrong. I have no credit for Lean Startup I have no credit for any intelligent work on this slides, including images, terminologies, processes, philosophies The context is web startup

So who got the credit for Lean Startup?

Eric Ries Co-founder and CTO of IMVU Entrepreneur-in-Residence at Harvard Business school, 2010 Best Young Entrepreneur of Tech, 2007 Startup advisory

Steve Blank Retired serial entrepreneur Built 8 startups in 21 years including MIPS Computers Now teaching Entrepreneurship at Berkeley, Stanford, and Columbia

What is lean?

LEAN = NOT FAT

And lean is everywhere

The key is to eliminate waste

So what is lean startup

Lean startup is a rigorous process for iterating from plan A to a plan that works. Speed
Startups that succeed are those that manage to iterate enough times before running out of resources Eric Ries

Validated Learning
Get out of the building Steve Blank

Focus
Right Action, Right Time Bijoy Goswami

Why should we care?

Where on earth do people use Lean?

Who actually used Lean Startup?

Dropbox (www.dropbox.com) Peernuts (www.peernuts.com)
Peernuts is a sharing platform for cultural goods. You just have to log in, list your library, connect with your friends and get access to the hundreds of films, books, video games, comics they want to share with you. Right now, Peernuts is in beta mode, available in French and just for DVDs.

And a lot more: IMVU, Votizen, KISSMetric, Aarkvard, Groupon, Hearsay, Epic Scale, Food on the Table, Pbworks,

Dropbox homepage

Dropbox - 1st Launch

Dropbox - 2nd Launch

Dropbox - 3rd Launch

Dropbox - Key Lessons

Public launch in Sep 2008 Ignored mainstream PR Did not focus on building lots of features Successfully used survey, split tests, landing page, signup flow optimization, sharing encouragement Invested heavily in analytics

Peernuts homepage

Peernuts Blogging before Coding

Step #1:
A short blog post 10-question poll No code AT ALL

Peernuts Market shrinking

Step #2:
Is your market really big and totally bullish? If yes, youre missing the point. If its big thats too big. Start shrinking your market! Started with DVD

Peernuts Feature Burner

Test #3:
Ask yourself if you have more than 3 features. If yes, youre too fat. 3 features:
a movie listing powered by an external movie database a loan dashboard a friend system coupled with Facebook connect and a basic mail invitation

No rating system, no wish list, no recommendation, no notification, no privacy setting NOOOOO!!!

Peernuts No designer
Step #4:
First product ship objective is to learn, learn, and learn. Dont depress if you dont have a wonderful logo. It looks weird but if you dont care, it will just be fine! Remember: you dont need the perfect product but a working prototype.

Peernuts Procrastination
Did you postpone product ship for the 3rd time? If yes, stop messing around. Release it! Learn with your customers > Refine useless aspects of your product

Peernuts - Conclusion
Right now: Peernuts doesnt work. But: we have a great feedback on the service we are building Will we add features? NO
Increase customer performance

Will we start massive communication? NO

Wait until the virality rate > 1

Will we work on our market? YES

We dont have the correct positioning yet.

Is it okay to not consider any business model for the moment?

How to use Lean Startup?

Lean Canvas MVP (Minimum Viable Product) Build Measure Learn loop Customer Development Key Metrics

Lean Canvas

Minimum Viable Product (MVP)

MVP is the product with just the necessary features to get money and/or feedback from early adopters. Do MVPs seem abstract to you?

MVP examples
1. If Apple can launch a smartphone without Find or Cut-and-Paste, what can you cut out of your product requirements? Sramana Mitra 2. USV-backed foursquare uses Google Docs to collect customer feedback. No code, no maintenance. 3. Fliggo sells it before they build it. 4. Grockit puts up a notify-me-when-you-release form on steroids. 5. Auto e-commerce site uses manualation and flintstoning for their backend. 6. Semiconductor company uses 5 people and FPGAs to build a $100M semiconductor product line. 7. Consumer company uses fake screenshots to sell their product. 8. Allicator uses Facebook ads: Ditch Digger? Feeling spread thin? Click here to complete a survey and tell us about it. 9. ManyWheels uses Microsoft Visio to build clickable web demos for prospective customers. 10. Cloudfire uses a classic customer development problem presentation.

Build Measure Learn loop

Customer Development (cont)

Customer Development (cont)

Key Metrics - AARRR

Before Product / Market Fit

After Product / Market Fit

Customer Lifecycle / Conversion Behavior

Conclusion
Lean Startup is a method of testing the assumptions and hypothesis of a business idea in an iterative manner while validating your product/market fit before you ship a complete product. Its new. So be skeptical.

Q&A