Lean Startup

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

Bio
• Co-founder of Passed Pawns LLC, a startup consulting firm • Business Advisory of Contemi, an insurance software from Norway • Instructor of Business Admin at Saigon Tech • Instructor of Project Management at FMIT • www.facebook.com/qtheboss

Agenda
• • • • • • What Why Where When Who How

Warning
• I am here to learn, not to teach • I do not like good words. I love hear you says “No, you’re 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

and Columbia . Stanford. 2007 Startup advisory Steve Blank • Retired serial entrepreneur • Built 8 startups in 21 years including MIPS Computers • Now teaching Entrepreneurship at Berkeley. 2010 Best Young Entrepreneur of Tech.So who got the credit for Lean Startup? • • • • Eric Ries Co-founder and CTO of IMVU Entrepreneur-in-Residence at Harvard Business school.

What is lean? LEAN = NOT FAT .

And lean is everywhere .

The key is to eliminate waste .

• Speed – Startups that succeed are those that manage to iterate enough times before running out of resources – Eric Ries • Validated Learning – Get out of the building – Steve Blank • Focus – Right Action.So what is lean startup • Lean startup is a rigorous process for iterating from plan A to a plan that works. Right Time – Bijoy Goswami .

Why should we care? .

Where on earth do people use Lean? .

Food on the Table. … . Groupon. KISSMetric.dropbox. Votizen. You just have to log in. books.com) • Peernuts (www. list your library. Peernuts is in beta mode. comics they want to share with you. Hearsay. Aarkvard.Who actually used Lean Startup? • Dropbox (www. Epic Scale.peernuts.com) – Peernuts is a sharing platform for cultural goods. available in French and just for DVDs. connect with your friends and get access to the hundreds of films. Pbworks. video games. – Right now. • And a lot more: IMVU.

Dropbox homepage .

1st Launch .Dropbox .

2nd Launch .Dropbox .

Dropbox .3rd Launch .

sharing encouragement … • Invested heavily in analytics .Dropbox . signup flow optimization.Key Lessons • • • • Public launch in Sep 2008 Ignored mainstream PR Did not focus on building lots of features Successfully used survey. landing page. split tests.

Peernuts homepage .

Peernuts – Blogging before Coding • Step #1: – A short blog post – 10-question poll – No code AT ALL .

Start shrinking your market! – Started with DVD . If it’s big that’s too big.Peernuts – Market shrinking • Step #2: – Is your market really big and totally bullish? If yes. you’re missing the point.

no recommendation. no notification.Peernuts – Feature Burner • Test #3: – Ask yourself if you have more than 3 features. If yes. you’re too fat. no wish list. – 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 privacy setting … NOOOOO!!! .

– Don’t depress if you don’t have a wonderful logo. It looks weird but if you don’t care. it will just be fine! – Remember: you don’t need the perfect product but a working prototype. and learn. learn.Peernuts – No designer • Step #4: – First product ship objective is to learn. .

stop messing around.Peernuts – Procrastination • Did you postpone product ship for the 3rd time? If yes. Release it! • Learn with your customers > Refine useless aspects of your product .

Peernuts .Conclusion • Right now: Peernuts doesn’t work. • Is it okay to not consider any business model for the moment? . • 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 don’t have the correct positioning yet.

How to use Lean Startup? • • • • • Lean Canvas MVP (Minimum Viable Product) Build – Measure – Learn loop Customer Development Key Metrics .

Lean Canvas .

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• Do MVPs seem abstract to you? .Minimum Viable Product (MVP) • MVP is the product with just the necessary features to get money and/or feedback from early adopters.

Auto e-commerce site uses manualation and flintstoning for their backend. Fliggo sells it before they build it. 8. Consumer company uses fake screenshots to sell their product.MVP examples 1. “If Apple can launch a smartphone without Find or Cut-and-Paste. 6. Cloudfire uses a classic customer development problem presentation. 5. 10. ManyWheels uses Microsoft Visio to build clickable web demos for prospective customers. 7. 4. Allicator uses Facebook ads: “Ditch Digger? Feeling spread thin? Click here to complete a survey and tell us about it. . 3.” 9. No code. Grockit puts up a notify-me-when-you-release form on steroids. what can you cut out of your product requirements?” – Sramana Mitra 2. no maintenance. USV-backed foursquare uses Google Docs to collect customer feedback. Semiconductor company uses 5 people and FPGAs to build a $100M semiconductor product line.

Build – Measure – Learn loop .

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Customer Development (cont) .

Customer Development (cont) .

Key Metrics .AARRR .

Before Product / Market Fit .

After Product / Market Fit .

Customer Lifecycle / Conversion Behavior .

• It’s new.Conclusion • Lean Startup is a method of testing the assumptions and hypothesis of a business idea in an iterative manner while validating your product/market fit before you ship a complete product. So be skeptical. .

Q&A .