Starting Lean: How to Find Out If Your Idea Has Potential In Days Not Years October 2014 Trevor Owens, Founder of QuickMVP and Lean Startup Machine
Startups Are NOT Small Versions of Big Companies
The Startup Curve Initial Enthusiasm Reality Sets In TROUGH OF SORROW Before Startup Scale Product/ Market Fit! Starts Working Experimenting & Pivoting Source: Paul Graham; avc.com Time Happiness
STARTUPS SEARCH
COMPANIES EXECUTE
A NEW MANAGEMENT
Principles of Lean Startup 1 Minimum Viable Products 2 Pivots 3 Early Adopters
1. Minimum Viable Products
2. Pivots
Famous Pivots
3. Early Adopters
Now for the good stuff…
EXPERIMENT = MVP 1 Hypothesis 2 Riskiest Assumption 3 Method 4 Success Criteria
1. Hypothesis “I BELIEVE customer HAS A PROBLEM WITH problem.”
2. Riskiest Assumption
3. Three Methods
Interview Pre-Sell Concierge
4. Success Criteria
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EXPERIMENT = MVP 1 Hypothesis 2 Riskiest Assumption 3 Method 4 Success Criteria
Problem Solution Riskiest Assumption Success Criterion Result & Decision Learning Limit: 5 Min Limit: 10 Min result least to the is... # of strong customers. CARE ABOUT ENVIRONMENT INTERVIEW 5 / 20 GET OUT OF THE BUILDING! 0/20 INVALID ! PIVOT! SKINNY TIE ! BUYING LIFESTYLE
RISKIEST ASSUMPTIONS 1 Is there demand in other cities? 2 Is there demand abroad? 3 Are people satisfied with the method? 4 Can we do workshops frequently enough?
KEY METRICS 1 Pain 2 Customer Acquisition Cost 3 Margin / Virality 44 Market Size
“I don’t look for five-foot fences to jump over, I look for one-foot fences to step over.” -Warren Buffet
RISKIEST ASSUMPTIONS 1 Four Key Metrics? 2 Will they launch a page? 3 Will they place an ad? 4 Can we acquire 500 paid users?
3. Trevor Owens - QuickMVP & Lean Startup Machine - @TO
!
Trevor is the Founder of QuickMVP, the Lean Startup
Machine and the author of The Lean Enterprise. His work has
been featured in numerous media outlets including Forbes,
Fast Company, and Business Insider, among others.
!
QuickMVP uses a super simple technique to help you validate
a new product or business idea in just 5 minutes. It's the only
so"ware that combines a Landing Page Builder with a Google
Ad Creator in one tool.
!
Lean Startup Machine is the world’s leading workshop on
Lean Startup principles and has helped tens of thousands of
startup founders and individuals from organizations
including Google, Salesforce, News Corp, Intuit, and others,
start thousands of new businesses across six continents.
10. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
11. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
Initial
Enthusiasm
12. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
Initial
Enthusiasm
Reality
Sets In
13. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Experimenting
& Pivoting
14. The Startup Curve
Before
Startup
Source: Paul Graham; avc.com
Time
Happiness
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Experimenting
& Pivoting Starts
Working
15. The Startup Curve
Initial
Enthusiasm
Reality
Sets In
TROUGH OF
SORROW
Before
Startup
Scale
Product/
Market Fit!
Starts
Working
Experimenting
& Pivoting Source: Paul Graham; avc.com
Time
Happiness
37. experiment. Experiments
Customer
Problem
Solution
Riskiest
Assumption
Success
Criterion
Result &
Decision
1 2 3 4 5
Time Limit: 5 Min
Time Limit: 5 Min
OZVS]PUNTime Limit: 5 Min
Time Limit: 10 Min
Hypothesis:
will result
.
Assumption:
the least
core to the
VESPA
BUYERS
CRAIGSLIST
RELYING
ON OIL
CARE
ABOUT
ENVIRON-MENT
INTERVIEW
5 / 20
GET OUT OF THE BUILDING!
38.
39. Problem
Solution
Riskiest
Assumption
Success
Criterion
Result
Decision
Learning
Limit: 5 Min
Limit: 10 Min
result
least
to the
is...
# of
strong
customers.
CARE ABOUT
ENVIRON-MENT
INTERVIEW
5 / 20
GET OUT OF THE BUILDING!
0/20 INVALID
!
PIVOT!
SKINNY TIE
!
BUYING
LIFESTYLE
40. experiment. Experiments
Customer
Problem
Solution
Riskiest
Assumption
Success
Criterion
Result
1 2 3 4 5
Time Limit: 5 Min
Time Limit: 5 Min
Time Limit: 5 Min
Time Limit: 10 Min
Hypothesis:
will result
least
VESPA
BUYERS
CRAIGSLIST
RELYING
ON OIL
CARE
ABOUT
ENVIRON-MENT
INTERVIEW
5 / 20
GET OUT OF THE BUILDING!
DIFFICULT
COMMUTE
SEEING
BENEFIT
SAFETY
ONE-PAGER
+ TRIAL
NO VESPA
FRIENDS
INTERVIEW
8 / 10
41.
42. Solution
Riskiest
Assumption
Success
Criterion
Result
Decision
Learning
Limit: 5 Min
Limit: 10 Min
result
least
to the
is...
of
strong
CARE ABOUT
ENVIRON-MENT
INTERVIEW
5 / 20
GET OUT OF THE BUILDING!
0/20 INVALID
!
PIVOT!
SKINNY TIE
!
BUYING
LIFESTYLE
NO VESPA
FRIENDS
INTERVIEW
8 / 10
5/10 INVALID
!
PIVOT!
“SCOOTER
PERSON”
LIFESTYLE
RISK
43. experiment. Experiments
Customer
Problem
Solution
Riskiest
Assumption
Success
Criterion
Result
1 2 3 4 5
Time Limit: 5 Min
Time Limit: 5 Min
Time Limit: 5 Min
Time Limit: 10 Min
Hypothesis:
will result
least
core to the
VESPA
BUYERS
CRAIGSLIST
RELYING
ON OIL
CARE
ABOUT
ENVIRON-MENT
INTERVIEW
5 / 20
GET OUT OF THE BUILDING!
DIFFICULT
COMMUTE
SEEING
BENEFIT
SAFETY
ONE-PAGER
+ TRIAL
NO VESPA
FRIENDS
INTERVIEW
8 / 10
DIFFICULT
COMMUTE
TOO
EXPENSIVE
IDENTITY
RISK
RENT VESPA
BEFORE BUY
PAY $250 /
MONTH
SELL
15 EMAILS 2
HOURS
44.
45. Solution
Riskiest
Assumption
Success
Criterion
Result
Decision
Learning
5 Min
10 Min
result
least
the
strong
CARE ABOUT
ENVIRON-MENT
INTERVIEW
5 / 20
GET OUT OF THE BUILDING!
0/20 INVALID
!
PIVOT!
SKINNY TIE
!
BUYING
LIFESTYLE
NO VESPA
FRIENDS
INTERVIEW
8 / 10
5/10 INVALID
!
PIVOT!
“SCOOTER
PERSON”
LIFESTYLE
RISK
PAY $250 /
MONTH
SELL
15 EMAILS 2
HOURS
50
VALID
!
PERSEVERE!
ALL CAPS
!
JUMPING
SEAT
46.
47.
48. RISKIEST ASSUMPTIONS
1 Is there demand in other cities?
2 Is there demand abroad?
3 Are people satisfied with the method?
4 Can we do workshops frequently enough?