Start Up Lessons from the Zen Masters. Starting out with the Lean Startup Approach.

1. Start-up Lessons
From the Zen Masters
Pivot

2. What is a Start-up?

3. “The first thing to
understand is,
there are 6
different types of
startups”
Steve Blank

4. Lifestyle Start-Up
Serve known customers with a known product
Get paid for their passion
Source:http://www.flickr.com/photos/lrargerich/

5. Lifestyle Start-Up
Work to live their Passion

6. Small Business
Start-Up
Serve known customers with a known product
Work to feed the family
Source:http://1990institute.org/microfinance/profiles

7. Small Business
Start-Up
Exit Criteria
Business Model found
Small
Startup Profitable business
Existing team Business
< €100K in revenue
Source:http://1990institute.org/microfinance/profiles

8. Scalable Start-Up
Search for a Business Model

9. Scalable Start-Up
Goal is to solve for: unknown customers &
unknown features. Born to be Big

10. Scalable Start-Up
August 2011
2,014,100
August 2009
January 2009 905,980
October 2007 400,980 +1530%
131,600
+688%
+304%
There are now 2,014,000 Facebook accounts active in Ireland, which means that 44pc of Ireland’s 4.5m population is on Facebook Source:http://www.siliconrepublic.com/new-
media/item/23292-now-2m-facebook-accounts-in/
Exit Criteria
Search Execute
Scalable Business model found Large
Total Available Market > €300m Company
Startup
Can grow to €50/year

11. Scalable Start-Up
Source:http://www.prweb.com/releases/Door-To-Door/Dry_Cleaning_Franchise/prweb762634.htm

12. Scalable Start-Up
A scalable start-Up is designed to grow big
Needs risk capital
What Silicon Valley means when they say “Startup”

13. Scalable Start-Up
Scalable Large
Transition Company
Startup
Search Execute
Build
Founders depart
Professional Mgmt
Process
Beginning of scale

14. Buyable Start-Up
Goal is to solve for: internet, mobile, gaming
apps. Born to be sold

15. Large Company Sustaining
Innovation
Serve known customers in existing known market
Known product features
Innovate or Die

16. Large Company Sustaining
Innovation
Scalable Large
Transition
Startup Company
Pic Source:http://www.newlaunches.com/archives/nokias_phone_history_timeline.php

17. Large Company Disruptive
Innovation
New Market
New tech, customers,
channels
New Large
Transition
Division Company
Disruptive Innovation

18. Large Company Disruptive
Innovation
New Large
Transition
Division Company
Build
Partner Disruptive Innovation
Acquire

19. Social Entrepreneurship
Solve pressing social problems
Social Enterprise: Profitable
Social Innovation: New Strategies
Source:http://www.kiva.org

20. Start-Up
Each Start-Up Requires Different Skills
They Can Not Be Taught the Same way
Source:http://www.drumsanders.net/c

21. Define a Start-Up?

22. “A startup is a
temporary organisation
used to search for a
repeatable scaleable
business model”

23. “A startup is a human
institution designed to
create new products and
services under
conditions of extreme
uncertainty”
Eric Ries

24. Start-up = Experiment
Pic Source:http://www.wallpapertimes.com/

25. Entrepreneurship is Management
Entrepreneurship is an institution, not just
a product, and so it requires a new kind
of management specifically geared to its
context of extreme uncertainty.

26. Validated Learning
“search for a
repeatable
scaleable
business
model”
Startups exist to learn how to build a
sustainable business. This learning can be
validated scientifically by running frequent
experiments that allow entrepreneurs to
test each element of their vision.

27. Build-Measure-Learn
The fundamental activity of a startup is to turn
ideas into products, measure how customers
respond, and then learn whether to pivot or
preserve. All successful startup processes should
be geared to accelerate that feedback loop.

28. Innovation Accounting
To improve entrepreneurial outcomes and
hold entrepreneurs accountable, how to
measure progress, how to set up
milestones & how to prioritize work.

29. Problem 1
1st problem is caused by
the allure of a good plan,
a solid strategy, and No business plan survives
thorough market
research. Startups first customer contact
operate with too much
uncertainty. Startups do
no know yet who their
customer is or what their
product should be.
Pic Source:http://businesswheel.com/

30. Problem 2
2nd problem is that after seeing traditional
management fail to solve this problem, some
entrepreneurs and investors have thrown up
their hands and adopted the “just do it” school
of startups.

31. Solution = Lean Startup
Taiichi Ohno Shigeo Shingo
Lean Startup takes its name from the
lean manufacturing revolution that Taiichi
Ohno and Shigeo Shingo are credited
with developing at Toyota.

32. Traditional Product Development
Waterfall
Requirements
Specifications
Design
Problem: known
Solution: known
Implementation
Unit of progress: Verification
Advance to the
next stage
Maintenance

33. Agile Product Development
“Product Owner” or in-house customer
Problem: known
Solution: unknown
Unit of progress:
A line of working
code

34. Lean Start-up
Pivot
Customer Development
Hypotheses, Experiments,
Problem: unknown Insights
Solution: unknown Data, Feedback,
Insights
Agile Development
Unit of progress: Customer
Validated learning Development:
My Model Requires
about customers you to get out of the
building
($$$)

35. Bu siness Mod el
Go & Search

36. Use the lean startup tool
box

37. key activities value customer
proposition relationships
key customer
partners segments
cost revenue
structure key streams
resources channels
37
images by JAM

38. Course Books

39. Follow

40. Follow

41. @startupchallnge
www.metropoliaes.fi/startupchallenge