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Lean Startup

Presented by Quang Nguyen (Sebastian) ,MBA, PMP, TESOL

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Bio

Co-founder of Passed Pawns LLC, a startupconsulting firm

Business Advisory of Contemi, an insurancesoftware from Norway

Instructor of Business Admin at Saigon Tech

Instructor of Project Management at FMIT www.facebook.com/qtheboss

http://www.facebook.com/qthebosshttp://www.facebook.com/qtheboss

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Agenda

What Why

Where When Who How

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Warning

I am here to learn, not to teach I do not like good words. I love hear you says

No, youre wrong. I have no credit for Lean Startup I have no credit for any intelligent work on this

slides, including images, terminologies,processes, philosophies The context is web startup

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So who got the credit forLean Startup?

Eric Ries Co-founder and CTO of IMVU Entrepreneur-in-Residence at

Harvard Business school, 2010 Best Young Entrepreneur of Tech,

2007

Startup advisory

Steve Blank Retired serial entrepreneur Built 8 startups in 21 years

including MIPS Computers Now teaching Entrepreneurship at

Berkeley, Stanford, and Columbia

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What is lean?

LEAN = NOT FAT

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And lean is everywhere

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The key is to eliminate waste

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So what is lean startup Lean startup is a rigorous process for iterating

from plan A to a plan that works . Speed

Startups that succeed are those that manage toiterate enough times before running out of resources

Eric Ries Validated Learning

Get out of the building Steve Blank Focus

Right Action, Right Time Bijoy Goswami

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Why should we care?

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Who actually used Lean Startup? Dropbox ( www.dropbox.com ) Peernuts ( www.peernuts.com )

Peernuts is a sharing platform for cultural goods . You just have to log in, list your library, connect with yourfriends and get access to the hundreds of films, books,video games, comics they want to share with you.

Right now, Peernuts is in beta mode, available inFrench and just for DVDs.

And a lot more: IMVU, Votizen, KISSMetric,Aarkvard, Groupon, Hearsay, Epic Scale, Food onthe Table, Pbworks ,

http://www.dropbox.com/http://www.peernuts.com/http://www.peernuts.com/http://www.dropbox.com/

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Dropbox homepage

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Dropbox - 1 st Launch

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Dropbox - 2 nd Launch

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Dropbox - 3 rd Launch

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Dropbox - Key Lessons

Public launch in Sep 2008 Ignored mainstream PR

Did not focus on building lots of features Successfully used survey, split tests, landing

page, signup flow optimization, sharingencouragement

Invested heavily in analytics

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Peernuts homepage

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Peernuts Blogging before Coding

Step #1: A short blog post 10-question poll No code AT ALL

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Peernuts Market shrinking

Step #2: Is your market really big and totally bullish? If yes,

youre missing the point. If its big thats too big.

Start shrinking your market! Started with DVD

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Peernuts Feature Burner

Test #3: Ask yourself if you have more than 3 features. If yes,

youre too fat . 3 features:

a movie listing powered by an external movie database a loan dashboard a friend system coupled with Facebook connect and a basic

mail invitation No rating system, no wish list, no recommendation, no

notification, no privacy setting NOOOOO!!!

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Peernuts No designer

Step #4: First product ship objective is to learn , learn, and

learn. Dont depress if you dont have a wonderful logo.

It looks weird but if you dont care, it will just befine!

Remember : you dont need the perfect productbut a working prototype .

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Peernuts Procrastination Did you postpone

product ship for the3rd time? If yes, stop

messing around.Release it! Learn with your

customers > Refineuseless aspects of your product

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Peernuts - Conclusion Right now: Peernuts doesnt work. But: we have a great feedback on the service we are

building Will we add features? NO

Increase customer performance Will we start massive communication? NO

Wait until the virality rate > 1 Will we work on our market? YES

We dont have the correct positioning yet. Is it okay to not consider any business model for the

moment?

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How to use Lean Startup?

Lean Canvas MVP (Minimum Viable Product)

Build Measure Learn loop Customer Development Key Metrics

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Lean Canvas

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Minimum Viable Product (MVP)

MVP is the product with just the necessaryfeatures to get money and/or feedback fromearly adopters.

Do MVPs seem abstract to you?

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MVP examples1. If Apple can launch a smartphone withou t Find or Cut -and-Paste, what can you

cut out of your product requirements? Sramana Mitra 2. USV-backed foursquare uses Google Docs to collect customer feedback . No code,

no maintenance.3. Fliggo sells it before they build it .4. Grockit puts up a notify-me-when-you-release form on steroids.

5. Auto e-commerce site uses manualation and flintstoning for their backend.6. Semiconductor company uses 5 people and FPGAs to build a $100M

semiconductor product line.7. Consumer company uses fake screenshots to sell their product.8. Allicator uses Facebook ads : Ditch Digger? Feeling spread thin? Click here to

complete a survey and tell us about it.

9. ManyWheels uses Microsoft Visio to build clickable web demos for prospectivecustomers.10. Cloudfire uses a classic customer development problem presentation .

http://www.sramanamitra.com/2008/02/24/the-iphone-as-a-minimum-viable-product-archetype/http://www.sramanamitra.com/2008/02/24/the-iphone-as-a-minimum-viable-product-archetype/http://www.sramanamitra.com/2008/02/24/the-iphone-as-a-minimum-viable-product-archetype/http://unionsquareventures.com/http://spreadsheets.google.com/viewform?hl=en&formkey=ck14Z3lLTEJYRUNLNDllQ05wTklhYWc6MAhttp://venturehacks.com/articles/sell-it-before-you-build-ithttp://venturehacks.com/articles/customer-development-patternshttp://news.ycombinator.com/item?id=529420http://venturehacks.com/articles/minimum-viable-producthttp://leanstartup.pbworks.com/Case-Study-Onehttp://groups.google.com/group/lean-startup-circle/browse_thread/thread/3ab7800f52d748dahttp://kevindewalt.com/blog/2009/01/03/mitigating-market-risk-with-microsoft-visio/http://www.ashmaurya.com/2009/10/how-i-built-my-minimum-viable-product/http://www.ashmaurya.com/2009/10/how-i-built-my-minimum-viable-product/http://kevindewalt.com/blog/2009/01/03/mitigating-market-risk-with-microsoft-visio/http://groups.google.com/group/lean-startup-circle/browse_thread/thread/3ab7800f52d748dahttp://leanstartup.pbworks.com/Case-Study-Onehttp://venturehacks.com/articles/minimum-viable-producthttp://news.ycombinator.com/item?id=529420http://venturehacks.com/articles/customer-development-patternshttp://venturehacks.com/articles/customer-development-patternshttp://venturehacks.com/articles/customer-development-patternshttp://venturehacks.com/articles/customer-development-patternshttp://venturehacks.com/articles/customer-development-patternshttp://venturehacks.com/articles/customer-development-patternshttp://venturehacks.com/articles/customer-development-patternshttp://venturehacks.com/articles/customer-development-patternshttp://venturehacks.com/articles/customer-development-patternshttp://venturehacks.com/articles/sell-it-before-you-build-ithttp://spreadsheets.google.com/viewform?hl=en&formkey=ck14Z3lLTEJYRUNLNDllQ05wTklhYWc6MAhttp://unionsquareventures.com/http://www.sramanamitra.com/2008/02/24/the-iphone-as-a-minimum-viable-product-archetype/http://www.sramanamitra.com/2008/02/24/the-iphone-as-a-minimum-viable-product-archetype/http://www.sramanamitra.com/2008/02/24/the-iphone-as-a-minimum-viable-product-archetype/

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Build Measure Learn loop

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Customer Development (cont)

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Customer Development (cont)

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Key Metrics - AARRR

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Before Product / Market Fit

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After Product / Market Fit

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Customer Lifecycle /Conversion Behavior

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Conclusion

Lean Startup is a method of testing theassumptions and hypothesis of a business ideain an iterative manner while validating yourproduct/market fit before you ship acomplete product.

Its new. So be skeptical.

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Q & A