Ash Maurya, Founder & Author of Running Lean Presentation on agile development at the 2012 Lean Startup SXSW, Austin.

1. MVP
Hashtag:
#leanstartup
ASH MAURYA
@ashmaurya
ashmaurya.com
spark59.com

2. IDEAS
LEARN BUILD
DATA PRODUCT
MEASURE

3. IDEAS
LEARN BUILD
Customer
Interviews
Demos
DATA PRODUCT
Teaser Pages
MEASURE
Smoke Tests
Release 1.0
Concierge MVP
Wizard of Oz MVP

4. An MVP is the smallest solution
that delivers customer value.

5. IDEAS
LEARN BUILD
Customer
Interviews
Demos
DATA PRODUCT
Teaser Pages
MEASURE
Smoke Tests
Release 1.0
Concierge MVP
Wizard of Oz MVP

6. An MVP is the smallest solution
that delivers customer value.
(BONUS: And captures customer
value.)

7. AGENDA
01 Finding a problem worth
solving
02 Defining the MVP
03 Maximizing for learning

8. AGENDA
01 Finding a problem worth
solving
02 Defining the MVP
03 Maximizing for learning

9. Time

10. Blog
Time

11. Book
Blog
Time

12. Workshops
Book
Blog
Time

13. Workshops
Book
Blog
Time

14. Awesome
Solution
We built it and we didn’t expect it to be a company,
we were just building this because we thought it was awesome.
- Mark Zuckerberg

15. Your “solution” is NOT the
product
Solution

16. Your business model is the
product
Problem Solution Unique Unfair Customer
Value Advantage Segments
Proposition
Key Metrics Channels
Cost Structure Revenue Streams

18. Problem
Interviews
Workshops
Book
Blog
Time

19. PROBLEM CUSTOMER
SEGMENTS
EXISTING EARLY
ALTERNATIVES ADOPTERS

20. PROBLEM CUSTOMER
SEGMENTS
1. Hard to measure real progress.
2. Drown in a sea of numbers.
3. Metrics can’t tell you why.
EXISTING EARLY
ALTERNATIVES ADOPTERS

21. PROBLEM CUSTOMER
SEGMENTS
1. Hard to measure real progress.
2. Drown in a sea of numbers. Software Companies
3. Metrics can’t tell you why.
EXISTING EARLY
ALTERNATIVES ADOPTERS

22. PROBLEM CUSTOMER
SEGMENTS
1. Hard to measure real progress.
2. Drown in a sea of numbers. Software Companies
3. Metrics can’t tell you why.
EXISTING EARLY
ALTERNATIVES ADOPTERS
1. Homegrown
2. Analytics & CRM software

23. PROBLEM CUSTOMER
SEGMENTS
1. Hard to measure real progress.
2. Drown in a sea of numbers. Software Companies
3. Metrics can’t tell you why.
EXISTING EARLY
ALTERNATIVES ADOPTERS
1. Homegrown SaaS products
2. Analytics & CRM software with > 20 sign-ups/day

24. AGENDA
01 Finding a problem worth
solving
02 Defining the MVP
03 Maximizing for learning

25. SOLUTION

26. SOLUTION
1. Pirate metrics + cohorts
2. Lifecycle messaging
3. Actionable visualization

27. SOLUTION
1. Pirate metrics + cohorts
2. Lifecycle messaging
3. Actionable visualization

28. Simple to understand.
Hard to implement so it’s
simple.

29. Build
Demo
Problem
Interviews
Workshops
Book
Blog
Time

30. You don’t need code to test a
vision.

32. 1. Are we making progress? -
WHAT

33. 1. Are we making progress? -
WHAT
2. What caused the change? -
WHY

34. 1. Are we making progress? -
WHAT
2. What caused the change? -
WHY
3. How do we improve? - HOW

35. June
Acquisition
1000 (100%)
Activated
800 (80%)
Retention
500 (50%)
Revenue
100 (10%)
Pros: Simple and visual

36. May June
Acquisition Acquisition
900 (100%) 1000 (100%)
Activated Activated
750 (83%) 900 (90%)
Retention Retention
500 (56%) 500 (50%)
Revenue Revenue
95 (11%) 100 (10%)
Cons: Hard to see what changed.

37. May June
Activation Activation
900 (100%) 1000 (100%)
Activated Activated
750 (83%) 900 (90%)
Retention Retention
500 (56%) 500 (50%)
Revenue Revenue
95 (11%) 100 (10%)

38. May June
Activation Activation
900 (100%) 1000 (100%)
Activated Activated
750 (83%) 900 (90%)
Retention Retention
500 (56%) 500 (50%)
Revenue Revenue
95 (11%) 100 (10%)

39. May June
Activation Activation
900 (100%) 1000 (100%)
Activated Activated
750 (83%) 900 (90%)
Retention Retention
500 (56%) 500 (50%)
Revenue Revenue
95 (11%) 100 (10%)

40. MAY JUNE
900 signed-up 1000 signed-up
ACTIVATION RATE 83% 90%
RETENTION RATE 56% 50%
PAID 11% 10%
0 20 40 60 80 100
0 20 40 60 80 100

41. MAY JUNE
900 signed-up 1000 signed-up
ACTIVATION RATE 83% 90%
RETENTION RATE 56% 50%
PAID 11% 10%
0 20 40 60 80 100
0 20 40 60 80 100

42. JUNE
1000 signed-up
ACTIVATION RATE 90%
RETENTION RATE 50%
PAID 10%
0 20 40 60 80 100

46. Days not weeks or
months.

47. Solution
Interviews
Build
Demo
Problem
Interviews
Workshops
Book
Blog
Time

48. AGENDA
01 Finding a problem worth
solving
02 Defining the MVP
03 Maximizing for learning

49. A ttention I
nterest D
esire
A ction

50. A ttention I
nterest D
esire
A ction

51. 01 Nail the problem.

52. A ttention I
nterest D
esire
A ction

53. 02 Deliver a compelling demo.

57. A ttention I
nterest D
esire
A ction

58. PROSPECTS / USERS CUSTOMERS
Stage 1 100 10 High-touch, Market Risk,
Qualitative
Stage 2 1,000 100
Stage 3 10,000 1,000
Self-serve, Technical Risk,
Stage 4 100,000 10,000
Quantiative
10X Product Launch

59. 03 Unintentional use of prizing and
scarcity.

60. Position your MVP as the prize.

61. 04 Don’t lower sign-up friction. Raise
it.

62. Qualify early adopters.

63. EXISTING
ALTERNATIVES
1. Homegrown SaaS products
2. Analytics & CRM software with > 20 sign-ups/day
REVENUE STREAMS
30-day trial @ $150-200/mo

64. 05 Use price anchoring.

67. $200/mo < 4 developer
hours /mo

68. Could you build a similar
homegrown system spending
half a day/month?

69. 06 Make a big promise you plan on
keeping.

70. Deliver value or go home.

71. THANKS!
ASH
MAURYA
ashmaurya.com
@ashmaurya
spark59.com