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Introduction to lean startup and lean canvas. This presentation starts with a background about lean startups to provide some context. It also has a section about product market fit. The next part describes the lean canvas in more detail with examples from my business and the apps I have made. This is a presentation given to UTS students at UTS Project Pitch 2014 event.
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Thinking Lean:Introduction to lean startup & lean canvasPresentation for UTS Project Pitch 2014Matthew Ho, Tapmint
About Me
Matthew Ho
● We make innovative apps● Worked in online for 7 years● Next Digital, Deloitte, Airbnb● Twitter: @inspiredworlds
Head of Product Development at Tapmint
Lean
● Make something that people want● Process: hypothesis - experiment -
measure
● Customer feedback
● Iterative process
● Less cost
● Test our assumptions
No waste
Chasing unicorns
Building product and ignoring customers
Product market fit
Imagine a carpark with the narrowest space possible and trying to park your car in there
Requires a series of moves & adjustments to park it
Only one key will unlock the market
Imagine product market fit as a key that unlocks the market
Need to keep polishing and refining it until the fit is true, clean and precise.
Cyclical process to find product market fit using lean startup methodology
Iterative process
Case study: LP Strategy app1. Constant iteration based on
feedback. 2. Weekly release cycles: design,
development, and marketing3. 10,000 downloads. 4. #5 ranked app for “Letterpress” in
AU, #8 in US in a competitive category.
Lean Canvas
1. Is a framework / tool2. Understand the principles behind it3. Methodology to think about starting a business4. Designed to capture the risks in your startup
Lean Canvas
1. Customer segments
● Who is the customer?● Target customers● Early Adopters● List the characteristics of your ideal
customers
1. Customer segments
Native Tongue language learning Apps● Target kids that were 6 - 8 years old● Parents 34 - 36 ● We also had a customer segment of
adult users (25 - 44) ● Schools purchasing for students
2. Problem
● What are the top three problems?● Existing alternatives● List how these problems are solved
today● “Blood on the floor problem”?
2. Problem
Native Tongue language learning apps● Learning a new language is really
hard ● Learning is boring ● Effective learning requires repetition
and practice
2. Alternatives available
● CD’s● Books ● Dictionaries● Classes● Personal tutors ● Podcasts ● Desktop software● Mobile apps
3. Unique value proposition
● What is your value proposition?● Single, clear, compelling message
that states why you are different and worth buying
● For us - “Fun, fast, effective language learning”
● We are a game
4. Solution
● What are the top three features?● Building only what is necessary to
solve the problem● Prioritise● Rank
5. Channels
● Path to customers ● For our apps
○ ASO ○ SEO ○ Content marketing○ Adwords ○ Email ○ Paid installs ○ Mobile ad networks
6. Revenue
● Revenue streams● Revenue model● Life time value● Gross margin
6. Revenue for Native Tongue
● Started with paid app ● Free & paid● In-app-purchase - buy pack for
$0.99● Power users would buy 3 packs● Upsell rate 3%● Price inelastic
7. Cost structure
● Customer acquisition costs● Distribution costs● Implementation cost● Our major costs
● Design● App development (in-house)● Hosting● Marketing● Rent
8. Key Metric
● Key activities you measure ● Pick one metric to start ● Metric that will validate or invalidate
your assumption ● ARPU (average revenue per user)● MAU (monthly active users)● DAU (daily active users)● Time spent per session
9. Unfair Advantage
● Can’t be easily copied or bought● IP● Deep industry experience or insight● Unique marketing channel ● Existing audience● Difficult to articulate from Day 1● Work towards and build
Summary
1. Lean startup methodology: hypothesis - experiment - measure2. Have a go at the lean canvas! 3. Lean canvas is a framework for market and product4. Product / market fit is an iterative process
About Us - Tapmint
● Team behind Native Tongue. First winning team in Startup Weekend in Australia
● 3 language game apps with 450,000 downloads
● Consulting: Innovation, rapid experimentation, complete solutions
Contact Us - Tapmint
● We make awesome apps ● Website: http://tapmint.com ● Twitter: @tapmint ● Email: [email protected]
Appendix
● Why Lean Canvas vs Business Canvas, Ash Maurya ● Lean Canvas Process and Examples ● The only thing that matters, Marc Andreessen● Lean Startup, Eric Ries ● Lean Stack tool
