Introduction to lean startup and lean canvas. This presentation starts with a background about lean startups to provide some context. It also has a section about product market fit. The next part describes the lean canvas in more detail with examples from my business and the apps I have made. This is a presentation given to UTS students at UTS Project Pitch 2014 event.

1. Thinking Lean:
Introduction to lean startup & lean canvas
Presentation for UTS Project Pitch 2014
Matthew Ho, Tapmint

2. About Me
Matthew Ho
Head of Product Development at Tapmint
● We make innovative apps
● Worked in online for 7 years
● Next Digital, Deloitte, Airbnb
● Twitter: @inspiredworlds

3. Lean
● Make something that people want
● Process: hypothesis - experiment -
measure
● Customer feedback
● Iterative process
● Less cost
● Test our assumptions

4. No waste

5. Chasing unicorns
Building
product and
ignoring
customers

6. Product market fit
Imagine a carpark
with the narrowest
space possible
and trying to park
your car in there
Requires a series
of moves &
adjustments to
park it

7. Only one key will unlock the market
Imagine product market fit as a
key that unlocks the market
Need to keep polishing and
refining it until the fit is true,
clean and precise.
Cyclical process to find product
market fit using lean startup
methodology

8. Iterative process
Case study: LP Strategy app
1. Constant iteration based on
feedback.
2. Weekly release cycles: design,
development, and marketing
3. 10,000 downloads.
4. #5 ranked app for “Letterpress” in
AU, #8 in US in a competitive
category.

9. Lean Canvas
1. Is a framework / tool
2. Understand the principles behind it
3. Methodology to think about starting a business
4. Designed to capture the risks in your startup

10. Lean Canvas

11. 1. Customer segments
● Who is the customer?
● Target customers
● Early Adopters
● List the characteristics of your ideal
customers

12. 1. Customer segments
Native Tongue language learning Apps
● Target kids that were 6 - 8 years old
● Parents 34 - 36
● We also had a customer segment of
adult users (25 - 44)
● Schools purchasing for students

13. 2. Problem
● What are the top three problems?
● Existing alternatives
● List how these problems are solved
today
● “Blood on the floor problem”?

14. 2. Problem
Native Tongue language learning apps
● Learning a new language is really
hard
● Learning is boring
● Effective learning requires repetition
and practice

15. 2. Alternatives available
● CD’s
● Books
● Dictionaries
● Classes
● Personal tutors
● Podcasts
● Desktop software
● Mobile apps

16. 3. Unique value proposition
● What is your value proposition?
● Single, clear, compelling message
that states why you are different
and worth buying
● For us - “Fun, fast, effective
language learning”
● We are a game

17. 4. Solution
● What are the top three features?
● Building only what is necessary to
solve the problem
● Prioritise
● Rank

18. 5. Channels
● Path to customers
● For our apps
○ ASO
○ SEO
○ Content marketing
○ Adwords
○ Email
○ Paid installs
○ Mobile ad networks

19. 6. Revenue
● Revenue streams
● Revenue model
● Life time value
● Gross margin

20. 6. Revenue for Native Tongue
● Started with paid app
● Free & paid
● In-app-purchase - buy pack for
$0.99
● Power users would buy 3 packs
● Upsell rate 3%
● Price inelastic

21. 7. Cost structure
● Customer acquisition costs
● Distribution costs
● Implementation cost
● Our major costs
● Design
● App development (in-house)
● Hosting
● Marketing
● Rent

22. 8. Key Metric
● Key activities you measure
● Pick one metric to start
● Metric that will validate or invalidate
your assumption
● ARPU (average revenue per user)
● MAU (monthly active users)
● DAU (daily active users)
● Time spent per session

23. 9. Unfair Advantage
● Can’t be easily copied or bought
● IP
● Deep industry experience or insight
● Unique marketing channel
● Existing audience
● Difficult to articulate from Day 1
● Work towards and build

24. Summary
1. Lean startup methodology: hypothesis - experiment - measure
2. Have a go at the lean canvas!
3. Lean canvas is a framework for market and product
4. Product / market fit is an iterative process

25. About Us - Tapmint
● Team behind Native Tongue. First
winning team in Startup Weekend in
Australia
● 3 language game apps with 450,000
downloads
● Consulting: Innovation, rapid
experimentation, complete solutions

26. Contact Us - Tapmint
● We make awesome apps
● Website: http://tapmint.com
● Twitter: @tapmint
● Email: hello@tapmint.com

27. Appendix
● Why Lean Canvas vs Business Canvas, Ash Maurya
● Lean Canvas Process and Examples
● The only thing that matters, Marc Andreessen
● Lean Startup, Eric Ries
● Lean Stack tool