Embed Size (px)
Citation preview
From Idea To Business Model
The Lean Startup Way
About Us
Rajesh Sukumaran
Co-Founder and CEO
Finahub Technology Solutions
Phone : +91-9745108885
Email : [email protected]
LinkedIn : http://in.linkedin.com/in/rajeshs
Twitter :
https://twitter.com/hsejar
Radhesh Radhakrishnan
VP Engineering
Nibodha Technologies
Phone : +91-9539800113
Email : [email protected]
LinkedIn : http://in.linkedin.com/in/radhesh
Twitter :
https://twitter.com/RRadhesh
Enterprise Startups
What is a Startup?
What is a Startup?
Is it really a smaller version of a larger company?
Is it something entirely different?
OR
A Startup is..
A startup is a temporary organization
designed to search for a repeatable
and scalable business model.
Anatomy of Startup Idea
Problem/Need
Customer
Solution
The Customer - Problem part of an
idea is called the customer
problem hypothesis
● Entrepreneurs act on idea.
● Ideas are cheap; acting on them is really expensive and consume time.
● Most products fail. 66% changed their original plan
● Finding the best plan that works before running out of resources
● Stage 1: Wait ! Do I have a problem worth solving?
● Observe the customers
● Get out of the building, Do customer interviews
● Understand Competitors and Pricing cues from the customer reactions
● Quickly build an MVP
Problems with Ideas
Lean Startup Principles
ENTREPRENEURS ARE
EVERYWHERE
ENTREPRENEURSHIP
IS MANAGEMENT
VALIDATED LEARNINGINNOVATION ACCOUNTING
BUILD-MEASURE-LEARN
1 2
34
5
Build-Measure-Learn
Idea Validation
Turn your idea into customer - problem hypothesis
List all the hypothesis associated with the idea
Consider one hypothesis and identify all assumptions made in that hypothesis
Take the riskiest assumption and test it to see if it is true or false
Pivot or Persevere ?
● Stage 2: Study the product-market fit using your MVP
● Have I built something that people really want?
● Qualitative and Quantitative measurements
● MVP: Quality Worries? Worried someone will steal your Startup Idea?
● Improve the product so that customers can realize the value proposition
● Measure: establish a baseline, tune the engine
● Use experiments to test the hypothesis that will improve the metric
● Beware of Vanity Metric
● Tools: Cohort Analysis, A/B testing
● Pivot or Persevere Challenge
Product / Market Fit
Cohort Analysis
Are we converging to
that ideal metric on our
business plan?
Using Validation Board
Activity - Idea Validation
Show the video
What is a Business Model?
A business model is how a company
creates value for itself by delivering
products and services for its
customers.
Business Model Canvas
Advantages of Business Model Canvas
Gives you a bigger picture about your startup
Forces you to think about the other moving parts of the company.
BMC defines the common language for communicating your business model to
your stakeholders at any stage of your company.
● Document your plan A. What is a Business Plan?
● Your *Business Model* IS the product
● It is incredibly easy to build any solution today
● Customer Segment Tool: User Persona
● UVP to Revenue: Tangible Benefits to pay a Price
● Investor View: Not solution itself but Key Metrics or Traction
● Margins: Difference between Cost Structure and Revenue
● Market Size
● Unfair Advantage: Defense against competition
Understanding Business Model
● Stage 3: Accelerate
● Power of small Batches
● Cross-functional Teams
● Continuous Integration and Deployment
● Grow: new customers come from the actions of past cutomers
● Engines of Growth: Stickiness, Viral, Paid
● Building an Adaptive Organization
● Ask Why 5 times
● Innovate:
● Scarce resources, Independent Authority, Stake in the outcome
● Platform for experimentation
Scaling Your Startup
Thank You
