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Beyond Buzzwords: An Introduction to The Lean Startup
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Transcript of Beyond Buzzwords: An Introduction to The Lean Startup
This is a book endorsed by some real heroes of entrepreneurship.
Geoffrey Moore • Tim O’ReillyTim Brown • Dan HeathRandy Komisar • Steve BlankRoy Bahat • Noam WassermanSheryl Sandberg • Marc Andreessen
“ Popularity has a price: people sometimes distort ideas, and therefore fail to reap their benefits.
– Carol Dweck
Today’s Talk• Context for The Lean Startup
• What is a “startup”?
• Customer Focus
• Minimum Viable Product
• Measure Progress
• Pivot or Persevere
“ A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.
– Eric Ries
“ Product / market fit means being in a good market with a product that can satisfy that market.
– Marc Andreessen
identify a real problem
create a solution for customers
in a market big enough to support its development and delivery
1
Product / Market Fit
2
3
* Some people say that if 1 and 2 are in place, you have problem / solution fit.
Quick tests at low costs lengthen the company’s runway, allowing more opportunities to achieve product / market fit.
Sales
Time
Do customers recognize they have the problem we want to solve?
If there were a solution, would they buy it?
Would they buy it from us?
Can we build a solution for that problem?
1
Key Questions
2
3
4
*
We’ve learned three big ideas!• a “startup” is a search
• seek product / market fit
• focus on the customer
Test central assumption
Learn from real customers
Keep the team moving fast*
1
Objectives for the MVP
2
3
* Going slow is expensive and increases risk
Test it!Build the simplest thing that will test the riskiest, most-central assumption.
* An assumption we can test is upgraded to a hypothesis.
Assumption MVP
Zappos People will buy shoes over the internet.
Bought shoes retail as orders came in
Dropbox People will try a new service to help them sync files between computers.
Youtube video
Airbed & Breakfast
People will stay on a stranger’s air mattress when hotels are full.
Listed founders’ apartment on simple website
“ If you are not embarrassed by the first version of your product, you’ve launched too late.
– Reid Hoffman
We’ve learned four big ideas!• a “startup” is a search
• seek product / market fit
• focus on the customer
• build a minimum viable product
Why we measure:Seek evidence that a sustainable business can be built around a startup’s products or services.
Keep metrics focused on customers
Concentrate on few, important metrics
Anchor metrics in qualitative understanding
1
Principles
2
3
We’ve learned five big ideas!• a “startup” is a search
• seek product / market fit
• focus on the customer
• build a minimum viable product
• measure results
*A pivot is a major change in strategy after learning that the team was wrong about one of its central assumptions.
We’ve learned six big ideas!• a “startup” is a search
• seek product / market fit
• focus on the customer
• build a minimum viable product
• measure results
• pivot or persevere
Thank You!Acknowledgments PHX Startup Week team • Sean Tierney • Cameron Donnell • Jennifer Boonlorn Erin McInerney • Jonas Zygas • Gabriel Ramirez • Tim Hoiland • David TischlerColby Gergen • Caleb Barclay • Jonathan Cottrell • Vikram Ramakrishnan Kelly Parent
Download slides bit.ly/lean-talk
Contact me [email protected] • @paulp