De-pe.com course @ UCN, Antofagasta, Class 2, topic: Failure

1. Class
2
Antofagasta,
Chile,
May
2011
www.de-­‐pe.com
@depeteam
With
the
Support
of:
1

2. • Intro
• Failure
in
Chile
• What
is
a
Startup?
• Why
Most
Startups
Fail?
• What
is
a
Pivot?
• Failure,
Pivot
&
Success
Stories
• Summing
Up
• Teams

3. Effects
on
Entrepreneurship

4. • The
Punishment
Culture

5. • Jesse’s
blog:
“He
explained
to
me
that
the
biggest
impediment
for
entrepreneurs
in
Chile
is
the
fact
that
Chilean
culture
harshly
punishes
failure
in
general.
All
the
other
Chileans
in
the
room
concurred…”

6. • “…As
I
spoke
more
with
this
Chilean
businessman,
it
became
truly
apparent
how
debilitaSng
it
would
be
for
entrepreneurs
to
grow
up
in
a
society
that
punishes
failure”.

7. • In
Chile,
what
happens
if
we
punish
failure?
– We
don’t
share
(fear)
– Country
in
status
quo
-­‐>
zero
innovaSon
– We
don’t
learn
– Cancer
for
Entrepreneurship
• AccepSng
failure
is
an
important
characterisSc
of
any
entrepreneur.

8. • Most
successful
startups
and
successful
people
were
failures
at
one
Sme.
Failure
is
important
learning
process.
The
ability
to
accept
failure
is
an
important
characterisSc
of
entrepreneurs.

9. What
kind
of
Startup
are
we?

10. Ries,
Lean
Startup
(www.startuplessonslearned.com)
Eric

11. • Our
goal
is
create
an
InsStuSon
not
just
a
product.
• TradiSonal
Management
tacScs
fail.
• Environment
of
extreme
uncertainty.
• Not
just
2
people
in
a
garage.

16. Steve
Blank,
Four
Steps
to
the
Epiphany
(www.steveblank.com)

18. • Nobody
knows
what
the
market
really
needs.
(we
cant
predict
the
future)
• Entrepreneurs
usually
build
before
test
their
Product/Business
Model
hypothesis.
• Startups
can
fail
from
unproven
assumpAons.
– We
believe
that
advancing
the
plan
is
progress.
• You
have
to
push
your
product
out
in
order
to
be`er
listen
and
learn
from
the
market.

19. DePe
Team

20. • Mike
Maples:
“You
Have
to
Be
Willing
to
Throw
it
all
away”.
– InvesSng
a
months
of
Sme
in
an
idea,
it’s
hard
to
let
it
go
and
move
on
to
the
next
one.
– Be`er
to
push
a
minimal
viable
product
out
and
validate
your
idea
quickly
–
we’ll
show
you
how
to
do
this.
• Most
successful
startups
and
successful
people
were
failures
at
one
Sme.
Failure
is
important
learning
process.
-­‐
Adapt
and
move
forward
(PIVOT)

21. Build,
Ship,
Pivot,
Repeat

22. • Pivot
is
changing
your
business
model
(not
just
iteraSng
on
your
product)
– It s the equivalent of taking a hit (no product
traction) and spinning (product pivot) to find
another path to the goal (product market fit).
Defense
Dribbling
Score

23. • Change
of
direcSons
but
stay
grounded
in
what
we
have
learned.
• If
we
speed
up
the
Sme
between
iteraSons,
we
increase
the
chances
of
success.
Build
Learn
Measure

25. • Product
Pivot
DaSng
Site
”Who
is
ho`er”
site
Group
SMS

26. • Fuzhou
HC
Imp.
Exp.
1. Impo.
Company
based
in
Chile.
a. High
CompeSSon,
No
Partners,
worthless
revenue
model-­‐
FIRST
PIVOT
/
Product
(Service).
2. Sourcing
and
Procurement
Outsourcing
Company
based
in
Chile.
a. No
experSse,
No
partners,
No
Customer
relaSonship,
No
Channels
-­‐
SECOND
PIVOT
/
Customer
Segment.

27. 3 Sales
(Foreign
Markets)
Outsourcing
Company
based
in
China.
a. New
target
market,
new
revenue
model.
b. Buyers
and
Sellers
became
our
customers.
4 Today’s
PIVOT-­‐
Sourcing
and
Procurement
Outsourcing
Company
based
in
Chile.
(yeah,
same
as
I
started)

28. Preguntas?