Why do they fail?

Because they build something that no one wants

The goals of the Bootcamp

• At the end of the six months to have worked through the principles of the book

• To apply many of them to real world situations that apply to our own businesses

• To embed some functions into your activity that give you a cutting edge

This book is for:• Those looking to start a business• Existing businesses that are seeking alternative revenue streams through innovation

• Existing businesses struggling with growing pains

• Anyone who wants to learn about how to develop their business

Introduction

My own experience of failure

Non-Validated Learning

Not enough• Did not set out to fail so did not set out to learn

• Learning was an excuse for poor execution

• It took far too long to learn• Not enough assured success

My search for an answer My beliefs are:• Entrepreneurship is not a gift of genetics it can be learned therefore it can be taught

• Hard work and dedication do not automatically create success

• Business is hard and failure is not unlikely so we should LEARN effectively and fail fast

Clearly there has to be a better way

LeanA brief history

• 1911 - Taylor created the science of management

• 1913 – Henry Ford bought in the production line

• 1930 – Toyota Production System (TPS) created• 1940 – Ford oversaw ‘A Bomber a Day’ mantra at Willow Run factory

• Post War – Toyota created Just In Time production processLean and Six Sigma were created as signs of

manufacturing excellence

And now?

• 1980’s to date - Service sector dominance has created the need for lean manufacturing to be applied to the service sector

• 2011 – Eric Reis wrote is #1 Best seller – the Lean Startup

Startup definition“A human institution designed to create new products and services

under conditions of extreme uncertainty.”

Thoughts on Traditional Business Planning

• I wrote extensive business plans for my business- I still failed

• People are fearful of the planning process- see it as a work of fiction

• A plan is a research exercise written in isolation before a product is built

Lean Startup Method

“Teaches you how to drive a startup; how to steer,

when to persevere and grow a business with maximum

acceleration”

Lean Startup PrinciplesEntrepreneurs are everywhere

Entrepreneurship is Management

Build-Measure-Learn

Validated Learning

Innovation Accounting

The Book is split up into 3 parts

As in a ‘Grand statement of what must happen’ to a ‘vague sense of what will happen’

Part 1 - VISION

Vision consists of:

Entrepreneurial ManagementA NEW PARADIGM

Entrepreneurial management

• Streamline processes• Create rigour• Avoid the ‘just do-it’ model of activity

• Bring in the word ‘pivot’• Tap into ‘the engine of growth’

Build what people wantProduct – constantly opti

mising

Strategy – a product

roadmap

Vision – Your True North

Why

How

What

Every setback is an opportunity

Product

Strategy

Vision

Optimisation

Pivot

Learn

Measure

Build

A startup is a portfolio activities

• Engine running• Customer acquisition• Looking after existing customers• Product / service improvement• Marketing• Financial control

New Product Development

In traditional management failure to deliver is a failure of planning and execution – it is penalised

New Product Development

Learn

Lean Startup – Validated Learning

“The process of demonstrating

empirically that a team has discovered valuable truths about a startups’

present and future business prospects”

The value of validated learning

Concrete results

Accuracy

Speed of results

“learning is the essential unit of progress for

startups” ER

In Lean Startup

Every activity is an experimentQuestions• Should this product be built?• Can we build a sustainable business around this service?

• What have we learned from this activity?

Experiment

• Create a clear hypothesis to test• What predictions can be made and then substantiated?

• Let the startup experiment be governed by the vision

Two hypotheses

Value hypothesis - “To test if a product or service really

delivers value to customers once they are using it”- ER

Growth hypothesis – “To test how new customers will discover the

product or service” - ER

An experiment is a product

1.Find early adopters 2.Gain customers to be advocates ahead of wider distribution

3.Create a specification rooted in feedback

What we seek to discover

1.Do consumers recognise that they have the problem that you are trying to solve?

2.Would they pay for the solution?

3.Would they buy this from you?4.Can we build a solution for

that problem?

To come09 Aug 2016 – The Minimum Viable Product 13 Sep 2016 – The Feedback Loop 11 Oct 2016 – Pivot or persist08 Nov 2016 – Root cause analysis – The 5-Whys13 Dec 2016 – The accelerate through innovation

Any Questions?

Back on the 9th of August