The document provides an overview of starting a business using lean startup methodology. It discusses that when starting a business, entrepreneurs should build the smallest product or service that can test assumptions and provide learning, rather than spending a long time planning or developing a large initial product. This minimum viable product approach helps reduce risk and waste by starting small and using business metrics and experiments to rapidly iterate the business model based on what is learned. The document recommends entrepreneurs focus on metrics related to the value and growth engines of the business to guide product pivots and determine if the business model is working well enough to sustain the venture.
12. • Entrepreneurship is a career
• Startups are (risky) experiments
• You don’t have to experiment full-time
•
13. • Entrepreneurship is a career
• Startups are (risky) experiments
• You don’t have to experiment full-time
• Ideas are only a small part of it
•
14. • Entrepreneurship is a career
• Startups are (risky) experiments
• You don’t have to experiment full-time
• Ideas are only a small part of it
• Running your own business is great
•
15. • Entrepreneurship is a career
• Startups are (risky) experiments
• You don’t have to experiment full-time
• Ideas are only a small part of it
• Running your own business is great
• Start today with what you have
23. Problems with B-plans
• Hard to see if complete
• Discourages collaboration
• Not for visual people
• Lengthy and tedious to prepare
• Lengthy to absorb
• Can hide issues under mountains of words
• Most people won’t read any of it!
24. Problems with B-plans
• Hard to see if complete
• Discourages collaboration or change, static
• Not for visual people
• Lengthy and tedious to prepare
• Lengthy to absorb
• Can hide issues under mountains of words
• Most people won’t read any of it!
25. Problems with B-plans
• Hard to see if complete
• Discourages collaboration or change, static
• Not for visual people
• Lengthy and tedious to prepare
• Lengthy to absorb
• Can hide issues under mountains of words
• Most people won’t read any of it!
26. Problems with B-plans
• Hard to see if complete
• Discourages collaboration or change, static
• Not for visual people
• Lengthy and tedious to prepare or absorb
• Lengthy to absorb
• Can hide issues under mountains of words
• Most people won’t read any of it!
27. Problems with B-plans
• Hard to see if complete
• Discourages collaboration or change, static
• Not for visual people
• Lengthy and tedious to prepare or absorb
• Can hide issues under mountains of words
• on’t read any of it!
28. Problems with B-plans
• Hard to see if complete
• Discourages collaboration or change, static
• Not for visual people
• Lengthy and tedious to prepare or absorb
• Can hide issues under mountains of words
• Most people won’t read any of it!
• on’t read any of it!
29. Problems with B-plans
• Hard to see if complete
• Discourages collaboration or change, static
• Not for visual people
• Lengthy and tedious to prepare or absorb
• Can hide issues under mountains of words
• Most people won’t read any of it!
• Present just one vision
33. Better business planning:
• Easy to see what’s missing
• Dynamic, open to suggestions and changes
• Visual
• Quick to prepare, change and grasp
• Issues come up to the surface
• People actually want to read it!
• Present multiple possibilities
39. Hero Rats...
• Genetically modified super-rats with brain
chips.
• At the press of a button, the Hero Rat will
seek out nearby explosives (e.g. in a land
mine). Press another button and the Hero
Rat returns (if still alive...).
40. Hero Rats...
• Due to a revolutionary process called “Rat
Magic”, the rats are inexpensive to breed
and fit out with brain chips.
41.
42. Hero Rat Exercise 1
• Come up with as many different possible
customer types as possible.
• Time: 4 minutes.
43.
44. Hero Rat Exercise 2
• What makes Hero Rats valuable?
• Time: 3.5 minutes.
45.
46. Hero Rat Exercise 3
• How can you sell Hero Rats?
• Time: 3 minutes.
60. Business Plans in 2012
• Easy to see what’s missing
• Dynamic, open to suggestions and changes
• Visual
• Quick to prepare, change and grasp
• Issues come up to the surface
• Present multiple possibilities
• People actually want to read it!
69. Exercise 1
• Using yellow post-its, pin down things you
really want to have on your business
model.
• Time: 3 minutes.
• Note: don’t put things you don’t care about!
73. Exercise 2
• Using red post-its, pin down things you
don’t want on your business model.
• Time: 2 minutes.
• Note: don’t put things you don’t care about!
92. What is a startup?
“The act or fact of starting something; a
setting in motion.”
-Dictionary (useless)
93. What is a startup?
“Startups are fresh, new companies trying
to do cool stuff.”
-Instinctive (still mostly useless)
94. What is a startup?
“A startup is an organization formed to
search for a repeatable and scalable
business model.”
-Steve Blank
95. What is a startup?
“A startup is a human institution designed to
deliver a new product or service under
conditions of extreme uncertainty.”
-Eric Ries
96. What is a startup?
“...essentially a startup is a new business
designed for scale.”
“A startup is a small company that takes on a
hard technical problem.”
-Paul Graham
97. What is a startup?
“A startup is a business which has ambitions
and plans to grow by a large factor
over the next few years.”
-Me!
110. • People don’t care about things they don’t
need/want
• Building things people don’t need is waste
• Building large things that people don’t need
is large waste
• You have no idea what you’re doing
• You have no idea what to build
111. • People don’t care about things they don’t
need/want
• Building things people don’t need is waste
• Building large things that people don’t need
is large waste
• You have no idea what you’re doing
• You have no idea what to build
112. • People don’t care about things they don’t
need/want
• Building things people don’t need is waste
• Building large things that people don’t need
is large waste
• You have no idea what you’re doing
• You have no idea what to build
113. • People don’t care about things they don’t
need/want
• Building things people don’t need is waste
• Building large things that people don’t need
is large waste
• You have no idea what you’re doing
• You have no idea what to build
114. • People don’t care about things they don’t
need/want
• Building things people don’t need is waste
• Building large things that people don’t need
is large waste
• You have no idea what you’re doing
• You have no idea what to build
161. Experiment failed...
what now?
• Why did it fail? Which assumption was
wrong?
• Can the assumption be tweaked, or does it
need to be thrown out?
• How can we rework the business model
now we know that we know this?
162. Experiments
succeeded, but...
• If it’s not working well enough to build a
sustainable business, it’s not working,
period.
(diminishing returns...)
165. • Zoom-in pivot: single feature becomes
the whole product
• Zoom-out pivot: the product becomes
a feature of a larger product
166. • Customer segment pivot: some
customers like us, but not the ones initially
targeted
• Customer need pivot: the product
doesn’t solve a big enough problem for our
customers
167. • Business architecture pivot: low
margin, high volume, vs. high margin, low
volume
• Value capture pivot: change the way
you monetise
180. What to do from here
• Be Smart
• Get Advice
• DO THINGS!
181. Where to go from
here...
• “The Lean Startup” - Eric Ries
• “Running Lean” - Ash Maurya
• “The entrepreneur’s guide to customer development” -
Brant Cooper & Patrick Vlaskovits
• Numerous blogs online...
• Mentors...
• EXPERIENCE!
182. Thank you!
Daniel Tenner
(@swombat)
http://swombat.com
http://granttree.co.uk