Introduction to lean startup and lean canvas. This presentation starts with a background about lean startups to provide some context. It also has a section about product market fit. The next part describes the lean canvas in more detail with examples from my business and the apps I have made.
This is a presentation given to UTS students at UTS Project Pitch 2014 event.
Thinking Lean - Introduction to Lean Startup and Lean Canvas
1. Thinking Lean:
Introduction to lean startup & lean canvas
Presentation for UTS Project Pitch 2014
Matthew Ho, Tapmint
2. About Me
Matthew Ho
Head of Product Development at Tapmint
● We make innovative apps
● Worked in online for 7 years
● Next Digital, Deloitte, Airbnb
● Twitter: @inspiredworlds
3. Lean
● Make something that people want
● Process: hypothesis - experiment -
measure
● Customer feedback
● Iterative process
● Less cost
● Test our assumptions
6. Product market fit
Imagine a carpark
with the narrowest
space possible
and trying to park
your car in there
Requires a series
of moves &
adjustments to
park it
7. Only one key will unlock the market
Imagine product market fit as a
key that unlocks the market
Need to keep polishing and
refining it until the fit is true,
clean and precise.
Cyclical process to find product
market fit using lean startup
methodology
8. Iterative process
Case study: LP Strategy app
1. Constant iteration based on
feedback.
2. Weekly release cycles: design,
development, and marketing
3. 10,000 downloads.
4. #5 ranked app for “Letterpress” in
AU, #8 in US in a competitive
category.
9. Lean Canvas
1. Is a framework / tool
2. Understand the principles behind it
3. Methodology to think about starting a business
4. Designed to capture the risks in your startup
11. 1. Customer segments
● Who is the customer?
● Target customers
● Early Adopters
● List the characteristics of your ideal
customers
12. 1. Customer segments
Native Tongue language learning Apps
● Target kids that were 6 - 8 years old
● Parents 34 - 36
● We also had a customer segment of
adult users (25 - 44)
● Schools purchasing for students
13. 2. Problem
● What are the top three problems?
● Existing alternatives
● List how these problems are solved
today
● “Blood on the floor problem”?
14. 2. Problem
Native Tongue language learning apps
● Learning a new language is really
hard
● Learning is boring
● Effective learning requires repetition
and practice
15. 2. Alternatives available
● CD’s
● Books
● Dictionaries
● Classes
● Personal tutors
● Podcasts
● Desktop software
● Mobile apps
16. 3. Unique value proposition
● What is your value proposition?
● Single, clear, compelling message
that states why you are different
and worth buying
● For us - “Fun, fast, effective
language learning”
● We are a game
17. 4. Solution
● What are the top three features?
● Building only what is necessary to
solve the problem
● Prioritise
● Rank
18. 5. Channels
● Path to customers
● For our apps
○ ASO
○ SEO
○ Content marketing
○ Adwords
○ Email
○ Paid installs
○ Mobile ad networks
19. 6. Revenue
● Revenue streams
● Revenue model
● Life time value
● Gross margin
20. 6. Revenue for Native Tongue
● Started with paid app
● Free & paid
● In-app-purchase - buy pack for
$0.99
● Power users would buy 3 packs
● Upsell rate 3%
● Price inelastic
21. 7. Cost structure
● Customer acquisition costs
● Distribution costs
● Implementation cost
● Our major costs
● Design
● App development (in-house)
● Hosting
● Marketing
● Rent
22. 8. Key Metric
● Key activities you measure
● Pick one metric to start
● Metric that will validate or invalidate
your assumption
● ARPU (average revenue per user)
● MAU (monthly active users)
● DAU (daily active users)
● Time spent per session
23. 9. Unfair Advantage
● Can’t be easily copied or bought
● IP
● Deep industry experience or insight
● Unique marketing channel
● Existing audience
● Difficult to articulate from Day 1
● Work towards and build
24. Summary
1. Lean startup methodology: hypothesis - experiment - measure
2. Have a go at the lean canvas!
3. Lean canvas is a framework for market and product
4. Product / market fit is an iterative process
25. About Us - Tapmint
● Team behind Native Tongue. First
winning team in Startup Weekend in
Australia
● 3 language game apps with 450,000
downloads
● Consulting: Innovation, rapid
experimentation, complete solutions
26. Contact Us - Tapmint
● We make awesome apps
● Website: http://tapmint.com
● Twitter: @tapmint
● Email: hello@tapmint.com
27. Appendix
● Why Lean Canvas vs Business Canvas, Ash Maurya
● Lean Canvas Process and Examples
● The only thing that matters, Marc Andreessen
● Lean Startup, Eric Ries
● Lean Stack tool