Intro to Lean Startups by San Kim

1. LeanStartupMachine NYC
(July 23-25, 2010)
*An Intro by San Kim (EaselLearning.com/iPad)

2. Agenda
What is Lean Startup? (Hint: lean != cheap)
How Lean Startup makes founders' lives
easier
Why you should start a company

3. Pre-assumptions
You are not interested solely on money
You are intrigued by the idea of creating
something from nothing
You want to create something BIG

4. What Is a Startup
Not small version of big company
Startups operate in extreme uncertainty.
Need to throw away some rules that apply to
big companies
http://www.startuplessonslearned.com/2010/06/what-is-startup.html

5. Why Do Startups Fail?
NOT because of tech
#1 Reason: No one wants the product

6. Old Venture Model
Raise money > Build in secret > Huge launch
What if no one wants it?

7. Lean Startup
You the founder do not know exactly what
kind of product the customer wants/needs.
Your job is to use customer feedback to
rapidly pivot to reach product/market fit
before running out of money.

8. Customer Feedback
Not just numbers (Google Analytics)
“Get out of the building”
Steve Blank quote: “If you’ve never personally
sold your product to customers, you’ll never
be a great entrepreneur”

9. The Pivot
Going from one iteration to the next based
on customer feedback
Keeping what works, changing what doesn’t.
Not a leap!
http://www.startuplessonslearned.com/2009/06/pivot-dont-jump-to-new-vision.html

10. Lean Feedback Loop
http://www.slideshare.net/startuplessonslearned/eric-ries-lean-startup-fundamental-
feedback-loop-and-workshop-info-from-web-20-expo-leanstartup

11. Minimum Viable
Product
Only the core features necessary to put in
front of customers
Ex: Buggy alpha, landing page, screenshots,
video
http://venturehacks.com/articles/minimum-viable-product

12. Product/Market Fit
Product is validated by the market
Marketing & sales proven to be effective and
repeatable
Minimize burn until you get to P/M fit
http://startup-marketing.com/the-startup-pyramid/

13. After P/M Fit
SPEND LIKE CRAZY! (and optimize)

14. Don’t Sweat the Big Stuff
Sales/PR/Marketing
Management
Infrastructure
Crazy features
Raising Money

15. Raising Money
NO ONE will fund you without a product
NO ONE will fund you without traction
“$50K is the new $5MM”
Easel iPad app first ship: <$2K, 1.5 months

16. DO Worry About
Participating in community
“Startup Karma”: Give back to the community,
and the community WILL reward you
Learning like crazy from others

17. Startup Pros:
Change the world, create something out of
nothing
REALLY fun
Live with a purpose

18. What If I Fail?
Will have gained:
• Enormous experience
• AWESOME resume item
Better & cheaper than biz school

19. Key Takeaways
• Engage customers early and often - "Get out
of the building"
• Start building today.
• Join the NYC startup community today.

20. Links
• Eric Ries http://www.startuplessonslearned.com/2010/04/five-
myths-about-lean-startup.html
• Steve Blank http://ecorner.stanford.edu/authorMaterialInfo.html?
mid=2056 (Click podcast > download mp3)
• Eric Ries http://www.vimeo.com/7345172 (slides: http://
www.slideshare.net/startuplessonslearned/2009-09-21-the-lean-
startup-seedcamp-edition)
• Sean Ellis http://startup-marketing.com/the-startup-pyramid/
• Steve Blank http://venturehacks.com/articles/cheap-startups
• venturehacks.com