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Start-up Strategy
  Lean Startup + YOU
Presentation by Chris Zobrist (czobrist@cal.berkeley.edu)

         • Overview: Short History
         • What is Lean Startup?
         • How can I use Lean Startup?
Customer Development
• Steve Blank
• Co-Founded 8 Startups
• 1996: Started E.piphany
  (CRM Software)
• 1998: $3.4mil sales
• 1999: IPO raised $72mil
Customer Development + Agile
               • Eric Reis (student of
                 Steve Blank at UC
                 Berkeley)
               • Co-Founded 2 Startups
               • 2004: Started IMVU
                 (3D Chat Client)
               • 2009: $20mil sales
               • 2010: $40mil sales
Based on Lean Manufacturing
Build, Measure, Learn Cycle
Learn through Rapid
Prototyping and
Experiments
•Tactics:
  • Lead Users
  • Smoke Tests
  • A/B Tests
Cust Dev + Agile = Lean Startup




Both frameworks are very detailed…
For most entrepreneurs,
they are TOO detailed…



            So, how to make it
                more SIMPLE..
                  and USEFUL?
Lean Philosophy
• Lean = Minimize Waste
• Waste = A product that no one will use
• Build only products your customers will use

                         How can we
                         build a product
                         our customers
                         will use?
Is Lean Startup right for me?
Useful Ideas #1: Minimize Startup Costs
Is Lean Startup right for me?
Useful Idea #2: Learn quickly what Customers need
Is Lean Startup right for me?
Useful Idea #3: Validate Customer Demand through
 Experiments and making and testing Prototypes
Lean Startup Philosophy in Use
Most Seed Accelerators/Incubators follow
Lean Philosophy:
•Y Combinator (US)
•Tech Stars (US)
•Seed Camp (UK)
•Startup Sauna (EU)
•Startup Chile (Chile)
•JFDI (Singapore)
Is Lean Startup right for my
Startup?
Key Question:
•Does your Product
involve writing new
software?
•If not, then the Agile
of Lean Startup may
not be useful for you.
Customer Development Framework
Step 1 – Customer Discovery
Who is your Customer?
Identify, Observe, and Interact
with your Lead User
                  NO SURVEYS!!! Face-
                  to-face Lead User
                  interaction and
                  observation is
                  REQUIRED
Five Discovery Skills
Become a Master
Innovator by…
2.Associating
3.Questioning
4.Observing
5.Networking
6.Experimenting
For more on these and other topics:
E-mail: czobrist@cal.berkeley.edu
Launching July 2012:
           One-Year Masters of Science in
Innovation, Leadership, and Entrepreneurship (English)
                                     in colab orat with:
                                           l      ion




•Designed to train High-Potential Innovators
•Learning through real-world Experience
•Connections to Industry and Investors
                Go to facebook.com/jvn.ms.ile

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Lean startup

  • 1. Start-up Strategy Lean Startup + YOU Presentation by Chris Zobrist (czobrist@cal.berkeley.edu) • Overview: Short History • What is Lean Startup? • How can I use Lean Startup?
  • 2. Customer Development • Steve Blank • Co-Founded 8 Startups • 1996: Started E.piphany (CRM Software) • 1998: $3.4mil sales • 1999: IPO raised $72mil
  • 3. Customer Development + Agile • Eric Reis (student of Steve Blank at UC Berkeley) • Co-Founded 2 Startups • 2004: Started IMVU (3D Chat Client) • 2009: $20mil sales • 2010: $40mil sales
  • 4. Based on Lean Manufacturing
  • 5. Build, Measure, Learn Cycle Learn through Rapid Prototyping and Experiments •Tactics: • Lead Users • Smoke Tests • A/B Tests
  • 6. Cust Dev + Agile = Lean Startup Both frameworks are very detailed…
  • 7. For most entrepreneurs, they are TOO detailed… So, how to make it more SIMPLE.. and USEFUL?
  • 8. Lean Philosophy • Lean = Minimize Waste • Waste = A product that no one will use • Build only products your customers will use How can we build a product our customers will use?
  • 9. Is Lean Startup right for me? Useful Ideas #1: Minimize Startup Costs
  • 10. Is Lean Startup right for me? Useful Idea #2: Learn quickly what Customers need
  • 11. Is Lean Startup right for me? Useful Idea #3: Validate Customer Demand through Experiments and making and testing Prototypes
  • 12. Lean Startup Philosophy in Use Most Seed Accelerators/Incubators follow Lean Philosophy: •Y Combinator (US) •Tech Stars (US) •Seed Camp (UK) •Startup Sauna (EU) •Startup Chile (Chile) •JFDI (Singapore)
  • 13. Is Lean Startup right for my Startup? Key Question: •Does your Product involve writing new software? •If not, then the Agile of Lean Startup may not be useful for you.
  • 15. Step 1 – Customer Discovery Who is your Customer? Identify, Observe, and Interact with your Lead User NO SURVEYS!!! Face- to-face Lead User interaction and observation is REQUIRED
  • 16. Five Discovery Skills Become a Master Innovator by… 2.Associating 3.Questioning 4.Observing 5.Networking 6.Experimenting
  • 17. For more on these and other topics: E-mail: czobrist@cal.berkeley.edu Launching July 2012: One-Year Masters of Science in Innovation, Leadership, and Entrepreneurship (English) in colab orat with: l ion •Designed to train High-Potential Innovators •Learning through real-world Experience •Connections to Industry and Investors Go to facebook.com/jvn.ms.ile