THE LEAN STARTUP

WHAT IS A STARTUP?

A human institution designed to create new products and

services under conditions of extreme uncertainty.

WHAT IS A LEAN STARTUP?

It makes use of lean principles to build sustainable

businesses of startups.

VISION

STEER

ACCELERATE

Value hypothesis That people will get value from your product

Growth hypothesisThat your product will spread and increase in adoption

Test assumptions

Launch MVP !!

Goal of a startup is to get validated learning as quickly as possible

a. Use innovation accounting (cohort analysis and split tests to measure what you're learning)

b. Continuous and frequent experimentation with real users

Kanban cycle:

(backlog, in progress, built, validated)

a. Limited number in each bucket

b. Cannot move forward in process unless get through validation

c. Design everything in mind with validation and experimentation

Genchi Gembatsu (get out of the building and interview;

see for yourself instead of relying on others' reports)

Build Measure Learn cycle

Zoom-in pivot: focus on one feature of a larger whole

b. Zoom out pivot: whole product needs more features

c. Customer segment pivot: focus on one customer segmenti. Sign LOIs

d. Customer need pivot: change in understanding of real need

e. Platform pivot: change from app to platform or backi. Like creating self-serve model to create similar apps

f. Business architecture pivot: high margin/low vol to low margin/high vol (or back)

g. Value capture pivot: different monetization

h. Engine of growth pivot: viral, sticky, or paid growth models

i. Channel pivot: change sales channel

j. Tech pivot: change underlying technology

k. A pivot is a new strategic hypothesis to test

l. A startup’s runway is the # of pivots it can still make

i. Get to each pivot faster to extend runway

PIVOT (or Persevere)

Technology pivot

Channel pivot

Engine of growth pivot

Value capture

pivot Businessarchitecture

pivot

Platform pivot

Zoom-in pivot

Zoom out pivot

Customer segment

pivot

Customer need pivot

Sustaining innovation vs.

disruptive innovation

Analogs and Antilogs

ENGINES OF GROWTH

Sticky Engine of Growth

Viral Engine of Growth

Paid Engine of Growth

SUMMARY:

1. Entrepreneurs are everywhere

2. Entrepreneurship is management.

3. Validated learning

4. Build-Measure-Learn.

5. Innovation accounting.