Starting Lean: How to Find Out If Your Business Idea Has Potential In Days and Not Years

Starting Lean: How to Find Out If Your Idea Has Potential In Days Not Years October 2014 Trevor Owens, Founder of QuickMVP and Lean Startup Machine

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Trevor Owens - QuickMVP & Lean Startup Machine - @TO ! Trevor is the Founder of QuickMVP, the Lean Startup Machine and the author of The Lean Enterprise. His work has been featured in numerous media outlets including Forbes, Fast Company, and Business Insider, among others. ! QuickMVP uses a super simple technique to help you validate a new product or business idea in just 5 minutes. It's the only so"ware that combines a Landing Page Builder with a Google Ad Creator in one tool. ! Lean Startup Machine is the world’s leading workshop on Lean Startup principles and has helped tens of thousands of startup founders and individuals from organizations including Google, Salesforce, News Corp, Intuit, and others, start thousands of new businesses across six continents.

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95% Source: Wall Street Journal, Sept 2012

180

Startups Are NOT Small Versions of Big Companies

The Startup Curve Before Startup Source: Paul Graham; avc.com Time Happiness

The Startup Curve Before Startup Source: Paul Graham; avc.com Time Happiness Initial Enthusiasm

The Startup Curve Before Startup Source: Paul Graham; avc.com Time Happiness Initial Enthusiasm Reality Sets In

The Startup Curve Before Startup Source: Paul Graham; avc.com Time Happiness Initial Enthusiasm Reality Sets In TROUGH OF SORROW Experimenting & Pivoting

The Startup Curve Before Startup Source: Paul Graham; avc.com Time Happiness Initial Enthusiasm Reality Sets In TROUGH OF SORROW Experimenting & Pivoting Starts Working

The Startup Curve Initial Enthusiasm Reality Sets In TROUGH OF SORROW Before Startup Scale Product/ Market Fit! Starts Working Experimenting & Pivoting Source: Paul Graham; avc.com Time Happiness

STARTUPS SEARCH

COMPANIES EXECUTE

A NEW MANAGEMENT

Principles of Lean Startup 1 Minimum Viable Products 2 Pivots 3 Early Adopters

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1. Minimum Viable Products

2. Pivots

Famous Pivots

3. Early Adopters

Now for the good stuff…

EXPERIMENT = MVP 1 Hypothesis 2 Riskiest Assumption 3 Method 4 Success Criteria

1. Hypothesis “I BELIEVE customer HAS A PROBLEM WITH problem.”

2. Riskiest Assumption

3. Three Methods

Interview Pre-Sell Concierge

4. Success Criteria

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EXPERIMENT = MVP 1 Hypothesis 2 Riskiest Assumption 3 Method 4 Success Criteria

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experiment. Experiments Customer Problem Solution Riskiest Assumption Success Criterion Result & Decision 1 2 3 4 5 Time Limit: 5 Min Time Limit: 5 Min OZVS]PUNTime Limit: 5 Min Time Limit: 10 Min Hypothesis: will result . Assumption: the least core to the VESPA BUYERS CRAIGSLIST RELYING ON OIL CARE ABOUT ENVIRON-MENT INTERVIEW 5 / 20 GET OUT OF THE BUILDING!

Problem Solution Riskiest Assumption Success Criterion Result Decision Learning Limit: 5 Min Limit: 10 Min result least to the is... # of strong customers. CARE ABOUT ENVIRON-MENT INTERVIEW 5 / 20 GET OUT OF THE BUILDING! 0/20 INVALID ! PIVOT! SKINNY TIE ! BUYING LIFESTYLE

experiment. Experiments Customer Problem Solution Riskiest Assumption Success Criterion Result 1 2 3 4 5 Time Limit: 5 Min Time Limit: 5 Min Time Limit: 5 Min Time Limit: 10 Min Hypothesis: will result least VESPA BUYERS CRAIGSLIST RELYING ON OIL CARE ABOUT ENVIRON-MENT INTERVIEW 5 / 20 GET OUT OF THE BUILDING! DIFFICULT COMMUTE SEEING BENEFIT SAFETY ONE-PAGER + TRIAL NO VESPA FRIENDS INTERVIEW 8 / 10

Solution Riskiest Assumption Success Criterion Result Decision Learning Limit: 5 Min Limit: 10 Min result least to the is... of strong CARE ABOUT ENVIRON-MENT INTERVIEW 5 / 20 GET OUT OF THE BUILDING! 0/20 INVALID ! PIVOT! SKINNY TIE ! BUYING LIFESTYLE NO VESPA FRIENDS INTERVIEW 8 / 10 5/10 INVALID ! PIVOT! “SCOOTER PERSON” LIFESTYLE RISK

experiment. Experiments Customer Problem Solution Riskiest Assumption Success Criterion Result 1 2 3 4 5 Time Limit: 5 Min Time Limit: 5 Min Time Limit: 5 Min Time Limit: 10 Min Hypothesis: will result least core to the VESPA BUYERS CRAIGSLIST RELYING ON OIL CARE ABOUT ENVIRON-MENT INTERVIEW 5 / 20 GET OUT OF THE BUILDING! DIFFICULT COMMUTE SEEING BENEFIT SAFETY ONE-PAGER + TRIAL NO VESPA FRIENDS INTERVIEW 8 / 10 DIFFICULT COMMUTE TOO EXPENSIVE IDENTITY RISK RENT VESPA BEFORE BUY PAY $250 / MONTH SELL 15 EMAILS 2 HOURS

Solution Riskiest Assumption Success Criterion Result Decision Learning 5 Min 10 Min result least the strong CARE ABOUT ENVIRON-MENT INTERVIEW 5 / 20 GET OUT OF THE BUILDING! 0/20 INVALID ! PIVOT! SKINNY TIE ! BUYING LIFESTYLE NO VESPA FRIENDS INTERVIEW 8 / 10 5/10 INVALID ! PIVOT! “SCOOTER PERSON” LIFESTYLE RISK PAY $250 / MONTH SELL 15 EMAILS 2 HOURS 50 VALID ! PERSEVERE! ALL CAPS ! JUMPING SEAT

RISKIEST ASSUMPTIONS 1 Is there demand in other cities? 2 Is there demand abroad? 3 Are people satisfied with the method? 4 Can we do workshops frequently enough?

KEY METRICS 1 Pain 2 Customer Acquisition Cost 3 Margin / Virality 44 Market Size

“I don’t look for five-foot fences to jump over, I look for one-foot fences to step over.” -Warren Buffet

RISKIEST ASSUMPTIONS 1 Four Key Metrics? 2 Will they launch a page? 3 Will they place an ad? 4 Can we acquire 500 paid users?

Questions? Trevor Owens Founder QuickMVP Lean Startup Machine @TO Thue Madsen Marketing Associate KISSmetrics @ThueLMadsen

THANK YOU Trevor Owens Founder, QuickMVP Lean Startup Machine