Lean Startup Essentials - Le Camping Edition
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Presentation at Le Camping, Paris on 27th October. New material: How to document your market, differences between B2B and B2C models. Made book references clearer.
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Lean Startup Essentials - Le Camping Edition
- 1. Lean Startup Essentials Lean Startup Essentials Lukas Fittl lukas@fittl.com 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
- 2. Lean Startup Essentials #1: Introduction Agenda • #1 Whats this all about? • #2 Document your business & market • #3 How to test B2B assumptions • #4 How to test B2C assumptions Thursday, 27 October 2011
- 3. Lean Startup Essentials #1: Introduction Whats the Lean Startup? • Reduce the (unavoidable) chaos in a startup • Increase your rate of success • Test your business Eric Ries - The Lean Startup http://lean.st assumptions Thursday, 27 October 2011
- 4. Lean Startup Essentials #1: Lean Startup Most startups fail from a lack of (paying) customers. Thursday, 27 October 2011
- 5. Lean Startup Essentials #1: Lean Startup Why? Wrong assumptions about your customer, the market, how much they will pay, etc. Thursday, 27 October 2011
- 6. Lean Startup Essentials #1: Lean Startup Startup: Temporary organization used to search for a repeatable and scalable business model. As defined by Steve Blank. Thursday, 27 October 2011
- 7. Lean Startup Essentials #2: The Lean Canvas We need structured learning before we execute. Thursday, 27 October 2011
- 8. Lean Startup Essentials #2: The Lean Canvas Document Your Business Thursday, 27 October 2011
- 9. Lean Startup Essentials #2: The Lean Canvas The Lean Canvas Alex Osterwalder - Business Model Generation Ash Maurya - Running Lean http://businessmodelgeneration.com http://book.runningleanhq.com Thursday, 27 October 2011
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- 11. Lean Startup Essentials #2: The Lean Canvas Problem Solution Unique Value Unfair Customer Proposition Advantage Segments Top 3 problems Top 3 features Single, clear, Can’t be easily Target customers compelling copied or bought message that states why you are different and Key Metrics worth buying Channels Key activities you Path to measure customers Cost Structure Revenue Streams Customer Acquisition Costs Revenue Model Distribution Costs Life Time Value Hosting Revenue People, etc. Gross Margin Thursday, 27 October 2011
- 12. Lean Startup Essentials #2: The Lean Canvas Problem • The top 3 problems the Problem Key Activities Value Customer Customer Proposition Relationships Segments customer is facing today, Key Channels Resources within a given context Cost Structure Revenue Streams • These might be things they’ve already started building in house, because there is an active need Thursday, 27 October 2011
- 13. Lean Startup Essentials #2: The Lean Canvas Customer Segments • Narrow group of people that Key Partners Key Activities Value Customer Customer Proposition Relationships Segments buy/use your product Key Channels Resources Cost Structure Revenue Streams • Marketplace biz models = 2 cust segmens (or more) Thursday, 27 October 2011
- 14. Lean Startup Essentials #2: The Lean Canvas Value Proposition • Single, clear, compelling Key Partners Key Activities Value Customer Customer Proposition Relationships Segments message that turns an unaware Key Channels Resources visitor into an interested Cost Structure Revenue Streams prospect • Your elevator pitch • What you put on your landing page Thursday, 27 October 2011
- 15. Lean Startup Essentials #2: The Lean Canvas Solution • Whats the Minimum viable Key Partners Key Activities Value Customer Customer Proposition Relationships Segments product (MVP) ? Key Channels Resources Cost Structure Revenue Streams • Minimal set of functionality to solve each problem of the customer Thursday, 27 October 2011
- 16. Lean Startup Essentials #2: The Lean Canvas Channels • How does the customer learn Key Partners Key Activities Value Customer Customer Proposition Relationships Segments about your product? Key Channels Resources Cost Structure Revenue Streams • B2B and B2C vastly different! • SEM, SEO, Friend Invites, Social Media, Direct Sales, Tradeshows, PR, Content Marketing, etc. Thursday, 27 October 2011
- 17. Lean Startup Essentials #2: The Lean Canvas Revenue Streams • How much is the problem Key Partners Key Activities Value Customer Customer Proposition Relationships Segments worth to the customer? Key Channels Resources Cost Structure Revenue Streams • Not how much it costs you to implement the solution • Avoid Free and Freemium Its just a marketing tactic! Thursday, 27 October 2011
- 18. Lean Startup Essentials #2: Document Your Market Document Your Market Thursday, 27 October 2011
- 19. Lean Startup Essentials #2: Document Your Market Example: Music Business Usage in TV productions, ... GEMA & Co Artist Manager Publisher PR Record Pressing Radio, Print, Internet, TV 50/50 Cut Booking Agent fixed fee / show Artist Record Label revenue share, details depending on offer Venue Promoter sales price Distributor Digital Distributor excl. cost for record almost nothing ~ 50c/song nothing excl. shipping expenses Beverage Sales Ticket Sales Tour Merchandise Sales In-Store Record Sales emusic iTunes Spotify Label Online Shop Sales Fan Thursday, 27 October 2011
- 20. Lean Startup Essentials #2: Document Your Market Example: Hosting Industry Controlpanels onapp Virtualization Plesk Virtuozzo KVM Technology Providers cPanel VMware Xen Focus on PHP/Rails/etc. Location Support Company Size Storage Hardware Hosting Industry Company Culture Shared Hosting Cloud/VPS Hosting Managed Hosting Platform as a Service Successful Mass Market Web Apps Customers New/Failed Agencies Developers Web Apps Thursday, 27 October 2011
- 21. Lean Startup Essentials #2: Document Your Business & Market These documents are alive and easy to update (not like your rusty old business plan) Thursday, 27 October 2011
- 22. Lean Startup Essentials #3: Testing B2B Assumptions Test Your B2B Assumptions Thursday, 27 October 2011
- 23. Lean Startup Essentials Literature Listen to customers. Do NOT execute on a made-up plan. http://steveblank.com Thursday, 27 October 2011
- 24. Lean Startup Essentials #3: Testing B2B Assumptions Customer Interviews 30 min in-person with your prototypical customer People like talking about their field - explore their worldview. Thursday, 27 October 2011
- 25. Lean Startup Essentials #3: Testing B2B Assumptions How to conduct an interview 1. Set context & tell your story 2. Tell your problem hypothesis 3. Listen to their worldview 4. Ask for follow up / references DO NOT sell them your solution Thursday, 27 October 2011
- 26. Lean Startup Essentials #2: Customer Discovery Online Market Tests: Google Adwords Fake Landing Page with “Signup to be notified when we launch” “Can we call you to ask a couple of Qs?” Thursday, 27 October 2011
- 27. Lean Startup Essentials #2: Customer Discovery Amy Hoy’s Sales Safari: Lurk in online forums of your customer segment, learn how they talk about products & benefits Thursday, 27 October 2011
- 28. Lean Startup Essentials #4: Testing B2C Assumptions Test Your B2C Assumptions Thursday, 27 October 2011
- 29. Lean Startup Essentials #4: Testing B2C Assumptions Build-Measure-Learn Thursday, 27 October 2011
- 30. Lean Startup Essentials #4: Testing B2C Assumptions Iterate quickly through the loop and improve your engagement & retention metrics. Thursday, 27 October 2011
- 31. Lean Startup Essentials Thanks! Thursday, 27 October 2011