A short introduction to the concepts of Lean Startup, presented as an introduction during the Asheville Lean Startup Conference Livestream.

1. Introduction to Lean Startup
by Trevor Lohrbeer
@FastFedora
trevor@FastFedora.com
FastFedora.com
@LeanDecisions
trevor@LeanDecisions.com
LeanDecisions.com

2. What is Lean Startup?
A scientific approach to
creating a new product or service
in conditions of high uncertainty

3. Why Use Lean Startup?
1.
Lower Your Market Risk
2.
Use Less Capital
3.
Increase Your Agility

4. Traditional Product Development
Generate
Idea
Create
Download Form
Build Product
Learn What
Customers Want

5. Getting Lean
Run a Smoke Test
Generate
Learn What
Idea Customers Want
Create
Download Form



Build a Minimum Viable Product
Create
Generate
Download Form
Idea
Learn What
Build
Product Customers Want
Reduces time to feedback
Enables faster course corrections
Minimizes capital spent developing unwanted
features / products

6. Customer Development
1. Customer Discovery
Achieve Problem/Solution Fit
2. Customer Validation
Achieve Product/Market Fit
3. Customer Creation
Drive Demand
4. Company Building
Scale the Company

7. Minimum Viable Product (MVP)
The simplest product or service
that provides value to a customer
Old Way




Research the market
Build the entire
product or service
Launch
Find out if you can
sell it
New Way



Build a minimum
product or service
Attempt to sell it
Iterate based on what
you learned

8. Example: MVP

9. Validated Learning
Old Way




Do something
Debrief
Invent reasons for
results
“Lesson Learned”
(but not really)
New Way






Make a hypothesis
Create experiment
Run experiment
Analyze results
Hypothesis either
validated or not
Lesson only learned
once validated

10. The Build-Measure-Learn Loop
Ideas
Learn
Build
Data
Product
Measure

11. Split Tests
Do you want more readers?

12. Metrics
Vanity
Actionable
Sound awesome, but
usually meaningless.
Often up and to the right.
Ties specific and
repeatable actions to
observed results.
#
Conversion
Customers
Revenue
# Page Views
Rate
Cost of Acquisition
Churn Rate

13. Cohorts
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Joined
Month 1
100%
10%
8%
5%
3%
2%
Joined
Month 2
100%
13%
10%
8%
7%
?
Joined
Month 3
100%
18%
14%
12%
?
Joined
Month 4
100%
19%
17%
?
Joined
Month 5
100%
25%
?
Joined
Month 6
100%
?

14. Product/Market Fit
When you have a product that you can consistently
and repeatedly sell to a specific market.
Signs of Product/Market Fit
When you have a block of customers with:
Similar Usage & Results
Repeatable Buying Patterns
Few Customization Needs

15. The Pivot
A structured course correction designed to test
a new fundamental hypothesis about the
product, strategy, and engine of growth.
* Requires validated learning

16. Other Terminology





Iterative Releases
Continuous Deployment
Business Model Canvas
Get Out of the Building (GOOTB)
Innovation Accounting

17. Questions?
Trevor Lohrbeer
@FastFedora
trevor@FastFedora.com
FastFedora.com
@LeanDecisions
trevor@LeanDecisions.com
LeanDecisions.com