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Based on Presentation to Cambridge Startup Masterclass December 2011




                Tools for Startup
                    Wizards
                             Paul Walsh
                              CogniDox
What I intend to cover:
• Introduction to The Lean Startup

• Lists of Tools – why lists don’t really work

• The Six Abilities Framework

• Stay Lean using Tools & the Framework
A Quick Overview

THE LEAN STARTUP
The Lean Startup
• Your time / life is precious, don't
  waste it on stuff nobody wants
• Test and correct assumptions as
  early as possible
• MVP - Minimum Viable Product
• Continuous deployment is good
• Always Be Measuring
• The Lean Startup is a company
  built to learn
• Customer development rather
  than product development
Not Lean as in “Frugal”
• Lean Startup ideas go back a long way (Lean
  Manufacturing, Kanban, etc.) and are not a
  response to “lean times” of current economy

• Where Philosophy of Science meets Business
  School thinking:
  – Scientific method: experimentation, empirical
    data, hypothesis-testing, falsification
Not just for Startups
• Lean applies to any Product Management
  enterprise

• Key requirement - “designed experiment”
  must be a viable concept for your market

• Hypothesis testing is about
  customer, user, buyer, pricing
  model, channels… and product
Minimum Viable Product (MVP)
• Eric Ries: “that version of a new product which
  allows a team to collect the maximum amount of
  validated learning about customers with the least
  effort.”

• Neither Minimal
  nor Viable but
  Minimum Viable
MVP revisions & limitations
• Awkward if your MVP needs a network effect or
  community to be useful
   – http://sethgodin.typepad.com/seths_blog/2011/11/when-minimal-viable-
     product-doesnt-work.html (Seth Godin)
• Should it be Minimum Marketable Product?
   – http://www.romanpichler.com/blog/agile-product-innovation/the-
     minimal-marketable-product/ (Roman Pichler)
• Should it be Maximally Buyable Product?
   – http://onstartups.com/tabid/3339/bid/12999/From-Minimally-Viable-To-
     Maximally-Buyable-Product.aspx (Dharmesh Shah)
• Do align your MVP cycles with risk of losing key
  customers, especially in B2B markets
• How well does MVP fit non Web / Mobile App
  markets such as Medical Devices, FMCG, etc?
Tools and the Lean Startup
• Tools help testing rapid iterative cycles of
  high-fidelity customer experiences
• Good tools:
  – accelerate Customer Development
  – help you gather actionable data
  – don’t need to cost big $$$
• Tools are not a substitute for thinking; nor are
  they a substitute for expertise
• Sometimes a pencil is the best tool
Why they don’t fully work

LISTS OF TOOLS
History
          • 2 years ago one of the
            Songkick founders
            started a Wiki
          • Tools validated by
            other startups
          • We contributed our
            opinions on tools we
            used & found useful
          • List has grown longer
            since and spawned
            other lists
Tool Lists
• Startup Tools
  – http://startuptools.pbworks.com/w/page/17974963/FrontPage
  – No framework + some very specialised tools = can
    make it hard to search/find
• Seedcamp list for business tools
  – http://biztools.pbworks.com/w/page/11120547/FrontPage
  – Is a little heavy on business philosophy and tips, light
    on recurring business tasks
• Lean Startup Wiki
  – http://leanstartup.pbworks.com/w/page/15765221/FrontPage
  – Good place to discuss Lean Startup concepts, but only
    tools are Business Model Canvas (explained later)
Lots of advice out there!
It needs a Framework
• No single template, but a good-enough step-
  by-step plan is better than no plan

• Setting up a team is harder than handing out
  the job titles

• It’s not good enough to say that everybody in
  a Startup needs to do everything
Roles not Job Titles
"I’m creating a Startup and I need to know how to
split up the various roles and responsibilities of
the founders. There are three of us plus a small
development team."

• So they call themselves CEO, CTO, CFO, COO…

• Job is NOT done, no real progress made

• Focus should be on Roles as things that need to
  be done, not job titles
Role confusion…
“In a Startup, everybody does everything”

• … if they can
  – Not everyone has the same skills
  – Important to take roles suited to individual
  – Important not to leave roles un-filled
  – Important not to have the wrong roles filled
  – Do things in the right temporal order

“This needs a Framework”
What do Startups need?

THE SIX ABILITIES FRAMEWORK
The #1 Startup Question:




 “What should I be doing
         now?”
Look at the things Startups do




                             Built with:
                             http://www.wordle.net/
Choose an apt metaphor
•   There are lots of metaphors for Startups
•   Rock stars – too “bratty” for me
•   Gurus – how impractical is that?
•   Wizards – works for me
    – Specialised
    – Skilled
    – Practical
    – Team Players
    – Magical
WoW as metaphor for Startup
                                     • Embark on Epic Quests
                                     • Recruit a Guild
                                     • Form Powerful Alliances
                                     • Engage an ever-changing
                                       World
                                     • Explore Environments
                                     • Different Classes / Abilities
                                     • Customise your talents to
                                       create a unique Hero

        (c) Blizzard Entertainment

                                     …sounds like a Startup to me
Inspired by De Bono’s Hats


       “Just give me the facts”   “Got a feeling about this”


       “What can go wrong?”       “What can we gain?”


      “Look at it another way”    “Think of it like this”




• No thinking style is best; a time when each works
Six Startup Abilities




                Six Abilities
                Framework
Startup Wizards
Forming Abilities
• Making New Things
  – Ideas for improvement or cost reduction
  – Teams
  – Networks of investors, contacts, advisors
  – Business models
  – Concepts
  – Culture
• Research
Forming & the Lean Startup
• Invent a succession of short customer pitches.
  For each pitch, do a Business Model Canvas

• Build your MVP plan – treat it like a Product
  Backlog, look at Agile PM tools to assist

• How do you research your competition?
  – Research is the precursor to Experiment – look at
    company and market data using tools
Example Forming Tools




    Startup Canvas      Level Business
Startup Wizards
Transforming Abilities
• Alchemy side of a Startup – turning the ideas
  into something tangible
• “Software is the nearest thing to magic that
  we've yet invented” (John Naughton, 2011)
Transforming & the Lean Startup
• Build User and Buyer Persona(s) and devise a strategy
  for UX testing

• Development teams: choose tools to support
  Agile, Scrum or Kanban process

• Create a development process around Continuous
  Integration (CI) and Automated Testing tools

• What does Continuous Deployment mean for your
  product / market? Implement the answer
Example Transforming Tools




    Agile Zen




                        Selenium



    Jenkins
Startup Wizards
Projecting Abilities
•   Promotion? All about Broadcast now
•   Thought leadership, content is king, etc
•   Gimmicks, stunts, and other diversions
•   Blogs & NoFollow links
•   Killer Website
•   Campfire Stories
•   Tight Verticals / Niche
•   Lateral Thoughts
    – Stack Overflow
Projecting & the Lean Startup
• Build your Lean Marketing Plan – it should
  contain a market launch plan
• Are you SEO-ready to collect and analyse
  metrics?
• Plan ahead by preparing some marketing
  content
• Streamline the content publishing process
  without losing QA
• Be media-savvy to the extent necessary – you
  are not a mega-Corporation needing spin
Example Projecting Tools




                            Open Site Explorer




   Hubspot Website Grader



                                Screenr
Startup Wizards
Persuading Abilities
• Projection gathers the audience, now you
  must persuade them
• Keeping track is harder than it sounds
• Building a sales pipeline model
• Suspects or Prospects?
• Answering questions
• Opportunities
• Conversations
Persuading & the Lean Startup
• Keep track of everything customer-related
• Refine Buyer Persona(s) when necessary
• Plan a Conversion Rate Optimization process
  and test it
• Decide your Technical Support methodology
• How much of a Knowledge Base can you build
  as early as possible?
• Integrate user voice tools into your testing
Example Persuading Tools




              SugarCRM
Startup Wizards
Collecting Abilities
•   Cash flow management and Lean Burn
•   Nothing can help you get paid on time 
•   Reduce friction points in the sales cycle
•   Sure Revenue and a sensitivity analysis
•   Avoiding late payment penalties
Collecting & the Lean Startup
• Business Model must co-
  exist with Business Plan
• MVP your Revenue profit
  engine
• Maybe two chasms to
  cross: Getting Users Vs
  Getting Customers
• Free/Premium pricing
  seems to cause more
  fallout than any other
  topic
Example Collecting Tools




     KashFlow




                           Xero




     HMRC Basic PAYE
Startup Wizards
Protecting Abilities
•   “Be your own Lawyer” – Discuss
•   Software Patents (are Evil)
•   How will your IPR defend your revenue growth?
•   Grab that domain name, protect that Trademark
•   Avoid Dark Patterns
•   Security nightmares
•   E-commerce
•   Data protection
Protecting & the Lean Startup
• Lean is all about adding customer value but
  you must operate within a protected and legal
  framework:
     • Domain, Trademark, Copyright, EULA, ToS
• If you want to start a fight with your user
  base, study and use Dark Patterns 
     • http://wiki.darkpatterns.org/Home
Example Protecting Tools




    WordPress              Boliven
A resource for Lean Startups

TOOLS & THE FRAMEWORK
A Startup Toolkit Resource
http://www.cognidox.com/toolkit



                             CLICK HERE
The Startup Tools Mind Map
Links to over 230 Tools
How to use the Mind Map
 Hold down
 mouse to drag
 image


Click on a title to expand / contract




   Built with:


                                        Click on a link to open tool website
Contacts
 Cognidox Limited               salesinfo@cognidox.com
 St. John's Innovation Centre   www.cognidox.com
 Cowley Road
 Cambridge CB4 0WS
 United Kingdom

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Tools For Lean Startup Wizards

  • 1. Based on Presentation to Cambridge Startup Masterclass December 2011 Tools for Startup Wizards Paul Walsh CogniDox
  • 2. What I intend to cover: • Introduction to The Lean Startup • Lists of Tools – why lists don’t really work • The Six Abilities Framework • Stay Lean using Tools & the Framework
  • 3. A Quick Overview THE LEAN STARTUP
  • 4. The Lean Startup • Your time / life is precious, don't waste it on stuff nobody wants • Test and correct assumptions as early as possible • MVP - Minimum Viable Product • Continuous deployment is good • Always Be Measuring • The Lean Startup is a company built to learn • Customer development rather than product development
  • 5. Not Lean as in “Frugal” • Lean Startup ideas go back a long way (Lean Manufacturing, Kanban, etc.) and are not a response to “lean times” of current economy • Where Philosophy of Science meets Business School thinking: – Scientific method: experimentation, empirical data, hypothesis-testing, falsification
  • 6. Not just for Startups • Lean applies to any Product Management enterprise • Key requirement - “designed experiment” must be a viable concept for your market • Hypothesis testing is about customer, user, buyer, pricing model, channels… and product
  • 7. Minimum Viable Product (MVP) • Eric Ries: “that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.” • Neither Minimal nor Viable but Minimum Viable
  • 8. MVP revisions & limitations • Awkward if your MVP needs a network effect or community to be useful – http://sethgodin.typepad.com/seths_blog/2011/11/when-minimal-viable- product-doesnt-work.html (Seth Godin) • Should it be Minimum Marketable Product? – http://www.romanpichler.com/blog/agile-product-innovation/the- minimal-marketable-product/ (Roman Pichler) • Should it be Maximally Buyable Product? – http://onstartups.com/tabid/3339/bid/12999/From-Minimally-Viable-To- Maximally-Buyable-Product.aspx (Dharmesh Shah) • Do align your MVP cycles with risk of losing key customers, especially in B2B markets • How well does MVP fit non Web / Mobile App markets such as Medical Devices, FMCG, etc?
  • 9. Tools and the Lean Startup • Tools help testing rapid iterative cycles of high-fidelity customer experiences • Good tools: – accelerate Customer Development – help you gather actionable data – don’t need to cost big $$$ • Tools are not a substitute for thinking; nor are they a substitute for expertise • Sometimes a pencil is the best tool
  • 10. Why they don’t fully work LISTS OF TOOLS
  • 11. History • 2 years ago one of the Songkick founders started a Wiki • Tools validated by other startups • We contributed our opinions on tools we used & found useful • List has grown longer since and spawned other lists
  • 12. Tool Lists • Startup Tools – http://startuptools.pbworks.com/w/page/17974963/FrontPage – No framework + some very specialised tools = can make it hard to search/find • Seedcamp list for business tools – http://biztools.pbworks.com/w/page/11120547/FrontPage – Is a little heavy on business philosophy and tips, light on recurring business tasks • Lean Startup Wiki – http://leanstartup.pbworks.com/w/page/15765221/FrontPage – Good place to discuss Lean Startup concepts, but only tools are Business Model Canvas (explained later)
  • 13. Lots of advice out there!
  • 14. It needs a Framework • No single template, but a good-enough step- by-step plan is better than no plan • Setting up a team is harder than handing out the job titles • It’s not good enough to say that everybody in a Startup needs to do everything
  • 15. Roles not Job Titles "I’m creating a Startup and I need to know how to split up the various roles and responsibilities of the founders. There are three of us plus a small development team." • So they call themselves CEO, CTO, CFO, COO… • Job is NOT done, no real progress made • Focus should be on Roles as things that need to be done, not job titles
  • 16. Role confusion… “In a Startup, everybody does everything” • … if they can – Not everyone has the same skills – Important to take roles suited to individual – Important not to leave roles un-filled – Important not to have the wrong roles filled – Do things in the right temporal order “This needs a Framework”
  • 17. What do Startups need? THE SIX ABILITIES FRAMEWORK
  • 18. The #1 Startup Question: “What should I be doing now?”
  • 19. Look at the things Startups do Built with: http://www.wordle.net/
  • 20. Choose an apt metaphor • There are lots of metaphors for Startups • Rock stars – too “bratty” for me • Gurus – how impractical is that? • Wizards – works for me – Specialised – Skilled – Practical – Team Players – Magical
  • 21. WoW as metaphor for Startup • Embark on Epic Quests • Recruit a Guild • Form Powerful Alliances • Engage an ever-changing World • Explore Environments • Different Classes / Abilities • Customise your talents to create a unique Hero (c) Blizzard Entertainment …sounds like a Startup to me
  • 22. Inspired by De Bono’s Hats “Just give me the facts” “Got a feeling about this” “What can go wrong?” “What can we gain?” “Look at it another way” “Think of it like this” • No thinking style is best; a time when each works
  • 23. Six Startup Abilities Six Abilities Framework
  • 25. Forming Abilities • Making New Things – Ideas for improvement or cost reduction – Teams – Networks of investors, contacts, advisors – Business models – Concepts – Culture • Research
  • 26. Forming & the Lean Startup • Invent a succession of short customer pitches. For each pitch, do a Business Model Canvas • Build your MVP plan – treat it like a Product Backlog, look at Agile PM tools to assist • How do you research your competition? – Research is the precursor to Experiment – look at company and market data using tools
  • 27. Example Forming Tools Startup Canvas Level Business
  • 29. Transforming Abilities • Alchemy side of a Startup – turning the ideas into something tangible • “Software is the nearest thing to magic that we've yet invented” (John Naughton, 2011)
  • 30. Transforming & the Lean Startup • Build User and Buyer Persona(s) and devise a strategy for UX testing • Development teams: choose tools to support Agile, Scrum or Kanban process • Create a development process around Continuous Integration (CI) and Automated Testing tools • What does Continuous Deployment mean for your product / market? Implement the answer
  • 31. Example Transforming Tools Agile Zen Selenium Jenkins
  • 33. Projecting Abilities • Promotion? All about Broadcast now • Thought leadership, content is king, etc • Gimmicks, stunts, and other diversions • Blogs & NoFollow links • Killer Website • Campfire Stories • Tight Verticals / Niche • Lateral Thoughts – Stack Overflow
  • 34. Projecting & the Lean Startup • Build your Lean Marketing Plan – it should contain a market launch plan • Are you SEO-ready to collect and analyse metrics? • Plan ahead by preparing some marketing content • Streamline the content publishing process without losing QA • Be media-savvy to the extent necessary – you are not a mega-Corporation needing spin
  • 35. Example Projecting Tools Open Site Explorer Hubspot Website Grader Screenr
  • 37. Persuading Abilities • Projection gathers the audience, now you must persuade them • Keeping track is harder than it sounds • Building a sales pipeline model • Suspects or Prospects? • Answering questions • Opportunities • Conversations
  • 38. Persuading & the Lean Startup • Keep track of everything customer-related • Refine Buyer Persona(s) when necessary • Plan a Conversion Rate Optimization process and test it • Decide your Technical Support methodology • How much of a Knowledge Base can you build as early as possible? • Integrate user voice tools into your testing
  • 41. Collecting Abilities • Cash flow management and Lean Burn • Nothing can help you get paid on time  • Reduce friction points in the sales cycle • Sure Revenue and a sensitivity analysis • Avoiding late payment penalties
  • 42. Collecting & the Lean Startup • Business Model must co- exist with Business Plan • MVP your Revenue profit engine • Maybe two chasms to cross: Getting Users Vs Getting Customers • Free/Premium pricing seems to cause more fallout than any other topic
  • 43. Example Collecting Tools KashFlow Xero HMRC Basic PAYE
  • 45. Protecting Abilities • “Be your own Lawyer” – Discuss • Software Patents (are Evil) • How will your IPR defend your revenue growth? • Grab that domain name, protect that Trademark • Avoid Dark Patterns • Security nightmares • E-commerce • Data protection
  • 46. Protecting & the Lean Startup • Lean is all about adding customer value but you must operate within a protected and legal framework: • Domain, Trademark, Copyright, EULA, ToS • If you want to start a fight with your user base, study and use Dark Patterns  • http://wiki.darkpatterns.org/Home
  • 47. Example Protecting Tools WordPress Boliven
  • 48. A resource for Lean Startups TOOLS & THE FRAMEWORK
  • 49. A Startup Toolkit Resource http://www.cognidox.com/toolkit CLICK HERE
  • 50. The Startup Tools Mind Map
  • 51. Links to over 230 Tools
  • 52. How to use the Mind Map Hold down mouse to drag image Click on a title to expand / contract Built with: Click on a link to open tool website
  • 53. Contacts Cognidox Limited salesinfo@cognidox.com St. John's Innovation Centre www.cognidox.com Cowley Road Cambridge CB4 0WS United Kingdom