Lean Startup Roadmap

  • Published on
    23-Jan-2015

  • View
    440

  • Download
    0

Embed Size (px)

DESCRIPTION

Lean Startup Roadmap workshop I conduct in Russian. Combines the methodology from Steve Blank, Eric Ries, Ash Maurya, and others. The intention is to provide practical steps individuals new to business and entrepreneurship can take in order to increase the likelihood of success in their new venture. The full workshop usually takes 6-8 hours.

Transcript

<ul><li> 1. LeanStartup Roadmap Matt Rutter CCI Gagauzia </li></ul><p> 2. Matt Rutter CCI Gagauzia Small Enterprise Advisor matt@mattrutter.com 3. Entrepreneurial 4. The reason most startups fail is not because they build a bad product, its that they build a product nobody needs. -Eric Ries 5. What separates successful startups is not necessarily starting with a better initial plan (Plan A), but finding a plan that works before running out of resources. - Ash Maurya 6. Customer Development 7. Lean Startup 8. Lean Canvas 9. Today Lean Startup Idea Validation Lean Canvas (Hands-on Practice) Testing Solutions (MVP) Scaling to Market (Leveraging Traction) Application, Discussion, &amp; Questions 10. A startup is not a doll house version of a large company. - Eric Ries 11. What is Lean Startup? Startup a temporary organization designed to search for a repeatable and scalable business model. Tradition Write and Execute Assumptions Static (Unchanging) Lean Model and Test Customer Development Agile (Iteration, Pivots)) 12. Startups that succeed are those that manage to iterate enough times before running out of resources. - Eric Ries 13. Eric Ries, The Lean Startup 14. LeanStartup Roadmap Idea Problem Interviews Market Research 15. Need TalentInterest 16. IDEA Customer/Problem Fit Determine if the problem exists and is worth solving Problem Interviews Market Research 17. Right Action, Right Time Ash Maurya practicetrumpstheory.co m IDEA Identify and Test Greatest Risks First 18. Customers care about their problems not your solution. IDEA - Dave McClure 19. Problem Interview Goal: To understand 1. What is the problem? Why is it a problem? 2. Who has the problem? 3. How do they currently solve the problem? Ash Maurya, Running Lean 81 20. Problem Interview Do Create falsifiable hypotheses to test Speak with customers face-to-face (casual setting) Use a script Take notes (bring partner/co-founder) Listen and ask questions Dont Pitch or sell Ask about the future Take more time than needed 21. Problem Interview Examples of Falsifiable Hypotheses X% of interviewees will have problem A X% of interviewees will currently use and be dissatisfied with an existing alternative X% of interviewees will be viable customers Ash Maurya, Running Lean 84 22. Problem Interview Example Script 1. Whats the hardest part about [problem context]? 2. Can you tell me about the last time that happened? 3. Why was that hard? 4. What, if anything, have you done to solve that problem? 5. What dont you love about the solutions youve tried? Justin Wilcox How I Interview Customers http://customerdevlabs.com/2013/11/05/how-i-interview-customers/ 23. Problem Interview Other questions: How often do you experience this problem? How much are you spending to solve this problem now? Where do you find information about [problem context] currently? Keys: Focus on emotional reactions Use 5 Whys to get to the core problems Hear 3 problem stories during each interview Justin Wilcox How I Interview Customers http://customerdevlabs.com/2013/11/05/how-i-interview-customers/ 24. Market Research What current solutions/alternatives exist? Cost Function Revenue model What barriers to entry exist? Is this a rising or dying trend? Resources: google.com/trends, google.com/think entrepreneur.com/businessideas/index.html hbr.org, forbes.com, wsj.com, techcrunch.com 25. LeanStartup Roadmap Idea Problem Interviews Market Research Model Lean Canvas Solution Interviews 26. MODEL Problem/Solution Fit Determine if your model solves the problem Lean Canvas Solution Interviews 27. Why Lean Canvas? Fast Concise Dynamic 28. Your Product is not The Product - Ash Maurya 29. Lean Canvas Modeling In Moldova 30. A business model describes the rational of how an organization creates, delivers, and captures value. -Alex Osterwalder, Business Model Generation 31. Customer Segments The specific group of people or organizations a business intends to serve. Who has the problem? For whom are we creating value? Who must we sell to or make happy? Early Adopters: The characteristics of the first group of people who will purchase your product. Sketch: Title Age Family Details Income Level Amount of Free Time Location Their Values/Morals Social Groups Professional Associations Hobbies Where They Shop 32. Problems The top 1-3 problems your Customer Segments need solved. What problem are we curing? How strong is this problem? Will the customer pay to have this problem removed? Existing Alternatives: How the problem is currently solved by the Customer Segments. Sketch: Frequency Expense Awareness Reaction Newness 33. Customer Segments Businessmen Foreigners University Students Early Adopters Young Adults (22-35 years old) First 10 customers: 4th year students at ASEM 34. Problems No comfortable, well-recognized place to meet for a good cup of coffee in Chisinau. Existing Alternatives McDonalds Andys Pizza Marcus Coffee 3 1 35. Team Time Customer Segments and Problems CS: The specific group of people or organizations a business intends to serve. Sketch: Title Age Family Details Income Level Amount of Free Time Location Their Values/Morals Social Groups Professional Associations Hobbies Where They Shop P: The top 1-3 problems your Customer Segments need solved. Existing Alternatives: How the problem is currently solved by the Customer Segments. Sketch: Frequency Expense Awareness Reaction Newness 36. Solution The minimum activities or features needed to solve the Customer Segments top 1-3 Problems. Outline a feature set to solve each problem (description of your product or service) Only include what is necessary (according to Solution Interviews) Sketch: How problem is solved Time needed for solution Resources needed Partners needed 37. Solution 1. Offer consistently high-quality cafe goods from a professionally trained staff. 2. Create an easily identifiable facility with an atmosphere conducive for good conversation. 3. Instill customer service and appreciation into every interaction with a Tucano employee or the Tucano facilities. 38. Team Time - Solution The minimum activities or features needed to solve the Customer Segments top 1-3 Problems. Outline a feature set to solve each problem (description of your product or service) Only include what is necessary (according to Solution Interviews) Sketch: How problem is solved Time needed for solution Resources needed Partners needed 39. Unique Value Proposition A clear and short message stating the business unique Solution to the Customer Segments Problem. The value you create for the Customer Segment How are you improving the lives of our customers? How are you different? High-Level Concept: Brief relation of your UVP to something commonly understood (i.e. : Facebook for Russians). Sketch: How your solution relates to the customers #1 problem Finished story benefit of purchasing your product How the solution will make your customer feel Note: The UVP represents the emotional trigger that will convince your customer to purchase your product/service 40. Unique Value Proposition Slogan: Love. Peace. Coffee. Offering great coffee, with a great atmosphere, to enable great conversations. Truly superior customer service and experience from entrance to exit. Fair-Trade and always-fresh 100% Arabica coffee roasted at Tucano Coffee Roasting Factory. World-class coffee machines operated by baristas certified to SCAE standards . High-Level Concept: Starbucks for Chisinau. 41. Team Time - Unique Value Proposition A clear and short message stating the business unique Solution to the Customer Segments Problem. The value you create for the Customer Segment How are you improving the lives of our customers? How are you different? High-Level Concept: Brief relation of your UVP to something commonly understood (i.e. : Facebook for Russians). Sketch: How your solution relates to the customers #1 problem Finished story benefit of purchasing your product How the solution will make your customer feel Note: The UVP represents the emotional trigger that will convince your customer to purchase your product/service 42. Channels 1. Product: How a company delivers its Value Proposition to the Customer Segments. 2. Marketing: How a company attracts the interest of its Customer Segments. Customer Relationship The closeness and frequency of the relationship developed with the Customer Segments. Sketch: How will you deliver your solution? How will your customer make a purchase? How will you find your first 10 paying customers? What is the most resource efficient way to attract Early Adopters? 43. Channels Product: 1. Purchase coffee beans and equipment from an international distributor, purchase raw ingredients for baked goods from local producers 2. Trained and certified Tucano employees bake and roast products 3. Engaging and pleasant staff take the customers order and payment 4. Tucano employee searches for customer and delivers the order to their seat. 44. Channels Marketing: Highly-visible and prominently placed storefronts Brightly colored and large advertisements on billboards Catering partnerships at prominent events with occasional giveaways Word-of-mouth by encouraging existing customers to invite friends/colleagues for a meeting Hosting evening events for NGOs or clubs. 45. Team Time - Channels 1. Product: How a company delivers its Value Proposition to the Customer Segments. 2. Marketing: How a company attracts the interest of its Customer Segments. Customer Relationship The closeness and frequency of the relationship developed with the Customer Segments. Sketch: How will you deliver your solution? How will your customer make a purchase? How will you find your first 10 paying customers? What is the most resource efficient way to attract Early Adopters? 46. Definitions Income/Revenue: Money coming in to a business. Expense/Cost: Money exiting a business (items the business pays for). Profit: Money a business keeps Profit = Revenue Expenses 47. Definitions Fixed Costs: Expenses that do not change depending on the number of products sold. Variable Costs: Expenses that change in proportion to the number of products sold. Break Even Point: Time (in # of products sold) when Revenue = Expenses. BEP = Fixed Costs / (Price Variable Costs) 48. Break Even Point Gourmet Food Cart Price of lunches = 55 MDL per lunch Variable expenses = 20 MDL per lunch Fixed expenses = 6000 MDL per month BEP = Fixed Costs / (Price Variable Costs) BEP = 6000 / (55-20) BEP = 171 lunches per month 49. Revenue Streams The various income- generating activities of a business. Customer Segment paying money to receive the business Value Proposition Charge as early as the customer will permit Determine price based on the value you add, not the cost of production Sketch: For what features will the customer pay? What features will be free? How will you position your business against alternative solutions? Are you adding value to non-customers who would be willing to pay? 50. Cost Structure All operational expenses of running your business. Sketch: Immediate fixed costs Immediate variable costs (including your labor) Break-even point 51. Revenue Streams Coffee Baked Goods Meals Catering 52. Cost Structure Fixed Costs Human Resource Overhead (including salaries) Equipment Decorations Electricity, Gas, Insurance Marketing Variable Costs Ingredients Presentation materials Water Electricity BEP (45% Coffee, 30% Meals, 15% Backed Goods, 10% Catering) BEP = 27.000/ (48 39) = 3.000 products 53. Team Time Revenue Streams and Cost Structure R$: The various income- generating activities of a business. Determine price based on the value you add, not the cost of production Sketch: For what features will the customer pay? What features will be free? How will you position your business against alternative solutions? Are you adding value to non- customers who would be willing to pay? C$: All operational expenses of running your business. Sketch: Immediate fixed costs Immediate variable costs (including your labor) Break-even point 54. Key Metrics The 3-5 indicators of a business health (success). How you track your customers behavior and preferences Monitoring the implementation of your business key activities Informs a business whether or not it needs to pivot/iterate Sketch: Customer Segment Awareness New Customer Acquisition Inventory Turnover Time Needed to Complete Job On-Time Payments Customer Retention Customer Referral 55. Pirate Metrics - Dave McClure (500hats.com) 56. Unfair Advantage The features of your business that are difficult for competitors to copy or buy. What keeps new competitors from taking your customers? If someone steals your idea, how will you continue to exist? Sketch: Current advantages (often based on existing relationships or networks) Advantages your business could develop over time Note: passion, existing resources, and being first to market are not sustainable competitive advantages. 57. Key Indicators 100 new customers per week 40% of customers return once per week 70% of customers recommend to friends/family 750 orders between all locations per day 6 minutes average time it takes from the moment a customer enters the ordering line until the customers food/drink is delivered 58. - Unfair Advantage American research experience and professional network Location of real estate Employee acquisition and training program 59. Team Time Key Metrics and Unfair Advantage KM: The 3-5 indicators of a business health (success). Sketch: Customer Segment Awareness New Customer Acquisition Inventory Turnover Time Needed to Complete Job On-Time Payments Customer Retention Customer Referral UA: The features of your business that are difficult for competitors to copy or buy. Sketch: Current advantages Advantages your business could develop over time Note: passion, existing resources, and being first to market are not sustainable competitive advantages 60. MODEL Lean Canvas Solution Interviews Return to the earlier interviewees and propose the Solution and UVP you sketched Do you have the right feature set? Discuss your business model (the interaction of all 9 boxes) with mentors or fellow entrepreneurs Do you have a realistic path to profit? 61. LeanStartup Roadmap Idea Problem Interviews Market Research Model Lean Canvas Solution Interviews Test MVP Early Adopter Sales 62. TEST Solution/Product Fit Determine how to effectively offer your solution in a minimal product Minimal Viable Product (MVP) Early Adopter Sales 63. Minimum Viable Product 64. Minimum Vi...</p>