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Start-Ups

- Startups drive the creation

of new jobs.

- Without startups, there

would be no net job
growth in US (1977-2005)

- In 2013, 75% of all start-

ups fails.

- In 2019, 90% of all start-

ups fails.
 Start-Ups

start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable
business model.

Traditional Model:
 Write a business plan. However you will suffer a
Unfortunately, a research by Harvard
 Pitch it to investors. fatal setback
business school’s shows 75% of all start-
 Assemble a team.
ups fails.
 Introduce a product or service.
 Start selling as hard as you can.

Recently, Important countervailing force has emerged that can make the process to start a company less
risky which is (Lean Start-up)
 Business Plan
 Briefly, It's Research exercise or static document Describe:

1. Size of opportunity.
2. Problem to be solved.
3. Solution.
 It Typically includes a 5 years forecast for income , Profit , and cash flow.

The fallacy of a perfect business plan:

 They Rarely survive after the first contact with the customers.
 Dreaming to have a 5 year plans to forecast complete unknowns is just a waste of time
 The more important is adapting with the circumstances and improving their initial ideas.
 Lean Start-Ups

 is an approach to build new businesses based on the belief that entrepreneurs must investigate,
experiment, test and iterate as they develop products

It favors:

• Experimentation • Elaborate Planning

• Customers Feedback Over • Intuition
• Iterative Design • Traditional Design

Main Concepts “minimum viable product” and “pivoting”

 Lean Start-Ups

 Lean startup is a methodology adopting for developing products that aims to shorten product
development cycles and rapidly discover if a proposed business model is viable.

 Lean method 3 key principles:

1. They use a framework called business model canvas instead of planning for months (will
be discussed in next slide).
2. Lean startups use “get out of the building” approach to test their hypothesis (customer
development).
3. Also, lean startups practice something called agile development, and this is how they create
the minimum viable product.
 Business Model Canvas

 Business model canvas is a visual template that helps entrepreneurs document an existing business
model or develop a new one
Revenue streams
Value proposition Customer relationship

Channels
Elements Cost structure

key partners
Customer segments
Key activities
Key resources

 It lets you look at all nine blocks of your business on one page each one contains a series of
hypothesis you need to test
 Lean& traditional start-ups

LEAN TRADITIONAL
• ADOPT EXISTING BUSINESS • BUSINESS PLAN
MODEL
• PRODUCT MANAGEMENT (STEP BY
• CUSTOMER DEVELOPMENT STEP PLAN)
(TESTING HYPOTHESIS)
• AGILE OR WATERFALL
• AGILE DEVELOPMENT DEVELOPMENT
• CUSTOMER AND AGILE • DEPARTMENTS BY FUNCTIONS
DEVELOPMENT TEAMS
• FIX FAILURE BY FIRING
• FIX FAILURE BY ITERATING AND EXECUTIVES
PIVOTING
• OPERATES ON COMPLETE DATA
• OPERATES ON GOOD ENOUGH
DATA
 Lean Start-up Reflection

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