miami lean startup circle meetup 12-04-2014 - tom ordonez
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STOP WASTING TIME AND MONEY
Miami Lean Startup Circle
Founder of New Frontier Nomads “Your Lean Mobile Cofounders”!• Organizer of Miami Lean Startup Circle!• Organizer of Android South Florida!• Miami Startup Digest curator!• 15 years of mobile and web dev experience!• Has developed apps that have over 10M downloads
Business developer with experience in lean startup, customer development, product development, offline/online marketing, software development and recruiting.!• Co-organizer of Miami Lean Startup Circle!• Attended 20+ trade shows!• Introduced 100+ products in the Latin American market!• $1M+ sales record!• Organized 2 software development workshops: http://coderetreatmiami.com!• Organized the first hackathon on a train: https://www.youtube.com/watch?
v=l1Dz1w982_c!• Organizer of Product Hunt Miami: www.meetup.com/Product-Hunt-Miami/
What is the Miami Lean Startup Circle?
The Lean Startup
❖ A methodology for developing businesses and products!
❖ Developed by Eric Ries!
❖ Applicable to any business or product!
❖ Lessons learned from wasting a lot of time and money
Who Likes To Waste Time?If he wastes time he gets!
Who Likes To Waste Money?
He will tear your eyeballs out and…you know the rest!right?
What is a Circle?
❖ Circle of Lean!
❖ Help each other!
❖ Support each other!
❖ Teach each other
What is a Lean Startup Circle?
Lean Canvas!Customer Development!
Product Interviews!Agile Development!
The Lean Startup Circle is a worldwide community: http://leanstartupcircle.com
Not Lean = Bacon❖ Bacon is yummy yum yum!
❖ Doing logos is bacon!
❖ Designing landing pages = bacon!
❖ Coding is bacon!
❖ Tweeting bacon!
❖ Sending surveys bacon!
❖ Building is bacon!
❖ Eating only bacon is bad for you
NOT The Lean Way
❖ People won’t buy your product cause:!
❖ You have a nice logo!
❖ You have a beautiful landing page/website!
❖ You have a lot of twitter followers!
❖ You write beautiful code
Let’s learn some Lean Startup Right Now!
Build a Lean Canvas
Tips to Complete a Lean Canvas❖ Complete from top to bottom, from left to right!
❖ Don’t get stuck in the terminology:!
❖ Lean canvas: Call it Smart Plan, Awesome Plan or whatever name you want!
❖ Unfair advantage: A component of the lean canvas. Which is the same as the common name “Competitive Advantage”!
❖ UVP aka Unique Value Proposition: This is an elevator pitch!
❖ Complete the 1st draft in 1 hour of brainstorming!
❖ Don’t spend time googling stuff!
❖ These are all assumptions based on your know-how!
❖ This is not a business plan!
❖ Focus on start UP (3 months runway) and not on growth
Tools to Build a Lean Canvas•Use anything!•Word, excel!•No need to buy
software!•Just use your
THIS IS A SIMPLE EXCEL TEMPLATE
Lean Canvas Template❖ You could also do a lean canvas template like this one. It is easier if
you are doing it in Excel or Word and don’t want to merge cells, which can be a mess.
Channels to Customers
Unique Value Proposition!What is it called:!For Who is It?!Why should they careCost Structure
Lean Canvas for Book My Flight
❖ In our last meetup Dec 4, 2014 at Venture Hive, participants came up with 5 ideas. Using a random formula, one idea was chosen.!
❖ Idea: Book My Flight
Lean Canvas: 1. Problems
Let’s identify the top 3 problems:!
❖ Too much time spent on research to find the best flight tickets!
❖ Getting the best deal is difficult!
❖ After spending a lot of time, the ticket you want is not available or the price you are looking for has a “pain level” (not the best times, dates, airports)
Lean Canvas: 2. Solutions
Let’s identify 3 possible solutions!
❖ Market price and historical records of tickets!
❖ Auction of tickets to the highest bidder or up to the market value!
❖ Personalized service of booking a flight, based on customer’s criteria
Lean Canvas: 3. UVP Example
❖ What is the Unique Value Proposition?!
❖ What is it? Twitter - Share short messages!
❖ For Who? For you and your friends!
❖ Why? Let the world know that you exist
Lean Canvas: 3. UVP Flight
❖ What: Book My Flight!
❖ Who: Business Travelers!
❖ Why: Cure the pain of booking
Lean Canvas: 4. Customer Segments
❖ Let’s think of all possible users that will use the product:!
❖ Business people that fly often!
❖ Companies that buy tickets for business people!
❖ Frequent flyers (segmented by collected miles)!
❖ Travel agencies!
❖ “Nightcrawlers”: Independent travel agents that crawl ticket websites at night (8pm to 5am)
Lean Canvas 5. Channels❖ How are we getting to these customers?!
❖ Channel 1: Bars at the airport. Bartender promotes service!
❖ Ch2: Buy the lists of customers!
❖ Ch3: Online segmented ads!
❖ Ch4: Alliance with airlines VIP clubs!
❖ Ch5: Association of travel agencies!
❖ Ch6: Tradeshows about travel agencies!
❖ Ch7: Ads on taxis or Ubers!
❖ Ch8: Promote with credit card companies!
❖ What is the best channel?
Lean Canvas: 6. Competitive Advantage
❖ What do you have they don’t have? Do you have some super secret formula?!
❖ Automatic booking!
❖ Fastest booking!
❖ Biometric reading to approve your booking!
❖ Some other super awesome ingredient we need to think about.
Lean Canvas: 6b. Competitors❖ The solution is a customized service to book your flight. The idea is not to
spend time searching for tickets. The service just knows when you are traveling, what your price is and it books the flight for you…like super fast.!
❖ Ticket competitors: Orbitz, Travelocity, Expedia, Hipmunk, more (But keep in mind you need to search the tickets there)!
❖ Travel agencies: I am sure there still are travel agencies but we cannot think of one right now.!
❖ The airlines: Website for the airline. You still need to search for your ticket. Although unsure if with super Gold status, the airline knows when/where you are traveling and a has a ticket for you.!
❖ So…get a List of competitors and do a SWOT for each
Lean Canvas: 7. Cost Structure❖ First iteration: 3-month plan for prototype at MIA!
❖ What costs are involved to build a 3-month runway?!
❖ Customer Development: Let’s say about $10K in 1 month: !
❖ Talk to 10 frequent flyers in 1 week $1K. !
❖ Go to 1 trade show for 3 days $5K!
❖ Talk to 10 car rental companies in 1 week $1K!
❖ Product Development MVP prototype, “No App”: $7K!
❖ Ads, marketing $5K!
❖ Lawyer $5K!
❖ Let’s say about $30K for 3 mo. Bootstrapped. Probably much less if we go Super Bootstrapped.
Lean Canvas: 7b. No App Cost❖ Say you only have $500 to build your MVP prototype product and
❖ Solution: A service that books your flight fast. Cures the pain of searching!
❖ This article shows that you don’t always need an app to launch your startup: !
❖ Our “No App” solution could be just “Call Me, I will find the best deal and I will book your flight”
Lean Canvas 8. Revenue Stream
❖ So…how are we going to make money?!
❖ Stream 1: Membership fee. Free for the 1st booking and $20/mo after.!
❖ Stream 2: Compensation table per miles!
❖ Stream 3: Commission per ticket 3%!
❖ Which stream will they pay?
Lean Canvas: 9. Metrics❖ How do we measure we are doing things lean?!
❖ Stalk frequent flyers outside VIP at the airport, 2 minute elevator pitch, test free price. How many like free and how many dislike free?!
❖ Do the same test with $20/mo and $200/mo with different customers!
❖ Number of frequent flyers that say booking is done through their company so they don’t care about booking their flight. Segment by airline and frequent flyer status.!
❖ Prepare your customer development questionnaire to test your problem/solution. With segmented customers, learn, measure and validate.
Customer Development: Planning❖ Review customer segments and channels!
❖ Create a procedure/script of the problem interview!
❖ Talk to the customer segments to do the problem interview!
❖ Our Lean Canvas v1.0 has some issues:!
❖ We said that a way to find frequent flyers is to stalk them outside the VIP at the airport. Don’t you need to have a ticket and pass the security to be outside of the VIP? Also consider that security would probably kick you out if you are hovering there for too long :)!
❖ Another channel was bars at the airport. But keep in mind this might work for growth. A bartender is not going to talk to customers and explain your product to understand if they have the (3) problems.!
❖ Another channel was to buy the list of customers. Keep in mind this can be expensive.!
❖ Any channel about advertisement is for brand awareness and maybe growth. But an ad will not talk to your customers and find out if they have the (3) problems.!
❖ How do you reach to customers and be able to talk to them (and I don’t mean email) ???
What’s Next❖ Customer development!
❖ The problem interview!
❖ Build a demo!
❖ The solution interview!
❖ Come to our next Miami Lean Startup Circle meetup to learn more:!
❖ Join our newsletter:!
Contact: Tom Ordonezhttp://startcreatus.com!http://tomordonez.com!https://twitter.com/tomordonez!http://www.linkedin.com/in/tomordonez/