My Slides from the "Implementing Lean Startup" workshop held at the inaugural Ideas to Profit conference at North Central College. Original sources (Eric Ries & Steve Blank) for the lean startup are in the last slide.

1. Implemen'ng
Lean
Startup
Twi$er:@ChetanChawla
MBA,
Ph.D.
North
Central
College
Email:
chetanchawla@gmail.com
2016 Ideas to Profits – Entrepreneurship & Small Business Conference
May 21, 2016 – Wentz Concert Hall
#IdeasToProfits

2. Supply
Push
or
Demand
Pull?
h;ps://marketoonist.com/2013/04/target-­‐market-­‐2.html
#IdeasToProfits

3. Why
Do
Startups
Fail?
(CB
insights)
• No
market
need:
42
%
• Ran
out
of
cash:
29
%
• Not
the
right
team:
23
%
• Got
outcompeted:
19
%
• Pricing/cost
issues:
18
%
h;ps://www.cbinsights.com/blog/startup-­‐failure-­‐post-­‐mortem/
h;ps://www.cbinsights.com/blog/startup-­‐failure-­‐reasons-­‐top/
#IdeasToProfits

4. Lean
Startup
• Based
on
book
by
Eric
Ries
• Goal:
“make
what
people
want.”
-­‐ Paul
Graham
#IdeasToProfits

5. Key
Principles
1. Entrepreneurs
are
everywhere
2. Entrepreneurship
is
management
3. Validated
learning
4. Innova'on
accoun'ng
5. Build
–
Measure
–
Learn
h;p://theleanstartup.com/principles
#IdeasToProfits

6. Entrepreneurs
Are
Everywhere
• Startups
create
value
under
condi'ons
of
uncertainty
• i.e.
①
Not
specific
to
industry/sector
②
May
focus
on
“social
value”
crea'on
③
Face
uncertainty
④
Startup
=
Experiment
=
Hypothesis*
tes'ng
*
A
testable
statement/proposi'on.
#IdeasToProfits
#1
Entrepreneurs
Are
Everywhere

7. Entrepreneurship
is
Management
① Incorporate
“science”
into
management
of
uncertainty
② Goal:
create
systems/ins'tu'ons,
not
just
a
product/service
③ Need
adaptability
due
to
condi'ons
of
extreme
uncertainty
#IdeasToProfits
#2
Entrepreneurship
is
Management

8. Validated
Learning
① Goal:
proving
the
viability
of
the
company’s
business
model,
what
investors
call
“trac'on.”
② Measure
of
progress
=
validated
learning
about
customers.
③ Valida'on
=
data
that
demonstrates
that
the
key
risks
in
the
business
have
been
addressed
by
the
current
product.
④ Anything
that
doesn’t
help
you
learn
what
customers
want
è
Waste.
h;p://www.startuplessonslearned.com/2009/04/validated-­‐learning-­‐about-­‐customers.html
#3
Validated
Learning
#IdeasToProfits

9. Innova'on
Accoun'ng
① MVP
=
Minimum
Viable
Product
è
test
how
customers
behave
now
② Experiment
to
test
if
value
created
can
be
increased
③ Pivot
or
Persevere
#4
Innova'on
Accoun'ng
#IdeasToProfits

10. Build-­‐Measure-­‐Learn
#IdeasToProfits
#5
Build-­‐Measure-­‐Learn

11. The
Pivot
#IdeasToProfits
#5
Build-­‐Measure-­‐Learn

12. Pivot
• Build
–
Measure
–
Learn
• Choice:
Persevere
OR
Pivot
• If
your
hypothesis
(e.g.
x
customers
value
our
y
product)
is
wrong
è
pivot
#IdeasToProfits
#5
Build-­‐Measure-­‐Learn

13. Pivot
–
must
be
jus'fied
#IdeasToProfits
#5
Build-­‐Measure-­‐Learn

14. Goal
=
Fast
Learning
Reduce
'me
between
pivots
Get
to
Product-­‐
Market
fit
fast
Before
you
run
out
of
$
#IdeasToProfits

15. To
Avoid
• Achieving
Failure
=
Successfully
(on
'me/budget)
building
product/service
that
no
one
wants
#IdeasToProfits

16. #IdeasToProfits

17. #IdeasToProfits

18. #IdeasToProfits

19. First
Step
• Business
Model
Canvas
• Describe,
Challenge,
Test
Key
Assump'ons.
#IdeasToProfits

20. Business
Model
Canvas
=
Key
Drivers
• Customer
Segments:
Who
are
the
customers?
What
do
they
think?
See?
Feel?
Do?
• Value
ProposiMons:
What’s
compelling
about
the
proposi'on?
Why
do
customers
buy,
use?
• Channels:
How
are
these
proposi'ons
promoted,
sold
and
delivered?
Why?
Is
it
working?
• Customer
RelaMonships:
How
do
you
interact
with
the
customer
through
their
‘journey’?
• Revenue
Streams:
How
does
the
business
earn
revenue
from
the
value
proposi'ons?
• Key
AcMviMes:
What
uniquely
strategic
things
does
the
business
do
to
deliver
its
proposi'on?
• Key
Resources:
What
unique
strategic
assets
must
the
business
have
to
compete?
• Key
Partnerships:
What
can
the
company
not
do
so
it
can
focus
on
its
Key
Ac'vi'es?
• Cost
Structure:
What
are
the
business’
major
cost
drivers?
How
are
they
linked
to
revenue?
h;p://www.alexandercowan.com/business-­‐model-­‐canvas-­‐templates/
#IdeasToProfits

21. #IdeasToProfits

22. #IdeasToProfits

23. #IdeasToProfits

24. #IdeasToProfits

25. Learning
without
MVP
(Minimum
Viable
Product)
• Do
MVE
(Minimum
Viable
Experiments)
• How?
1) Customer
interviews
2) Landing
Page
Tests
3) Undercover
compe'tor
studies
4) Concierge/
Wizard
of
Oz
(e.g.
Zappos)
5) Prototypes
6) A/B
tests
#IdeasToProfits

26. Exercise:
For
Your
Venture
I. Fill
out
the
Lean/
Business
Model
Canvas
for
your
business.
II. Assump'on/hypotheses
tes'ng:
• What
are
our
assump'ons?
• What
is
the
riskiest
assump'on?
• How
can
we
validate/
invalidate
the
riskiest
assump'on
quickly?
#IdeasToProfits

27. #IdeasToProfits

28. Business
Model
Canvas
=
Key
Drivers
• Customer
Segments:
Who
are
the
customers?
What
do
they
think?
See?
Feel?
Do?
• Value
ProposiMons:
What’s
compelling
about
the
proposi'on?
Why
do
customers
buy,
use?
• Channels:
How
are
these
proposi'ons
promoted,
sold
and
delivered?
Why?
Is
it
working?
• Customer
RelaMonships:
How
do
you
interact
with
the
customer
through
their
‘journey’?
• Revenue
Streams:
How
does
the
business
earn
revenue
from
the
value
proposi'ons?
• Key
AcMviMes:
What
uniquely
strategic
things
does
the
business
do
to
deliver
its
proposi'on?
• Key
Resources:
What
unique
strategic
assets
must
the
business
have
to
compete?
• Key
Partnerships:
What
can
the
company
not
do
so
it
can
focus
on
its
Key
Ac'vi'es?
• Cost
Structure:
What
are
the
business’
major
cost
drivers?
How
are
they
linked
to
revenue?
h;p://www.alexandercowan.com/business-­‐model-­‐canvas-­‐templates/
#IdeasToProfits

29. Sources
• Eric
Ries’:
1. Presenta'ons
h;p://www.slideshare.net/startuplessonslearned/2011-­‐10-­‐12-­‐eric-­‐ries-­‐lean-­‐startup-­‐web-­‐20-­‐
expo-­‐ny-­‐keynote
2. Website:
h;p://theleanstartup.com/
• Steve
Blank
1. Why
the
Lean
Startup
Changes
Everything:
h;ps://hbr.org/2013/05/why-­‐the-­‐lean-­‐start-­‐up-­‐changes-­‐everything
2. Website:
h;ps://steveblank.com/
#IdeasToProfits