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INTRO to LEAN
INTRO LEANto
Lean Startup Methodology and what it means
INTRO to LEAN
Meet Joe…• 4 time founder / CEO• Raised $20 Million +• Lean Startup user• Lean Startup Teacher (40+ companies)• Opinionated Guy…
INTRO to LEAN
What is Lean Startup…
…and why should we care?
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We Fail!
95% 5%
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Mostly because the Product / Business Model misses
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Help is on the Way !
60% in 8
INTRO to LEAN
Help is on the Way !
60% in 8
the next phase …
INTRO to LEAN
Part 2Lean Startup in 19 Minutes
“The Lean Startup” is a trademark and service mark owned by Eric Ries
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History• Young but growing quickly• Customer development – Steve Blank• “ 4 Steps to the Epiphany ”• Integrated with Lean Startup (2009)• Rapid adoption
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• Popular on the West Coast• Hot and growing on the East Coast• Enclaves in all major cities (Boston, Chicago, South Fla,
Raleigh-Durham, etc.)• Seeing Mainstream Press (New York Times, WSJ)• Popular – NYC Lean Startup sells out in hours
Spreading
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• Not necessarily something new• Experienced serial entrepreneurs “know but had to learn the
hard way”• Methodology and framework everyone can follow
Perspective
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Hypotheses
Validate – Customer Development / testing / MVP
Pivot
Product-Market fit
Scale
Process
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• Key assumptions needed for your business to succeed
• Every facet: customer, product, market, financials
Hypotheses
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Example: Hypotheses
1. People love to play the game Scene it
2. People will play a similar game on Facebook but using advertising clips instead of movie scenes (with prizes)
3. People will share game content on Facebook (walls), leading to more players.
4. Advertisers will pay a high CPM for a “guaranteed engaged” audience
(from SourcePad client Talamu)
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Example: Hypotheses
1. People love to play the game Scene it
2. People will play a similar game on Facebook but using advertising clips instead of movie scenes (with prizes)
3. People will share game content on Facebook (walls), leading to more players.
4. Advertisers will pay a high CPM for a “guaranteed engaged” audience
(from SourcePad client Talamu)
✔Yes
✔75% sure??? not sure
??? 50%
sure
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Validate• “Get out of the building” – Steve
Blank • Customer interviews• Walkthroughs of wireframes• Landing page tests
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Example: Validation
Process
• Find people through networking, Craigslist, Starbucks (if needed, pay them with gift cards)
• Ask them about their life/work/problems
• Tell them or Show them your solution (or 2 solutions, one of them yours)
• Keep count
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MVP• Minimum Viable Product• Minimum you need to test validity• Some include Wireframes, Landing
Pages, Simulations along with working products
• Iterate (Agile) from there
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OR
Example: MVP
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Pivot• Changing your direction• Classic: changing your business
model• Significant changes• New hypotheses
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Company First try Pivot Success
Paypal Palm Pilot payments All payments $1.5 billion(ebay)
YouTube Dating Site(Tune In Hook Up)
YouTube $1.6 billion(Google)
Starbucks Coffee beans / espresso makers
Cafes $24 billion (Nasdaq)
Example: Pivots
INTRO to LEANExample 2 : SourcePad - before
INTRO to LEANExample 2 : SourcePad - after
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Product Market Fit• When• Metrics (Viral Co-efficient,
Revenue, Conversion, CPM/CPC)
• Ready to scale
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Morning Stats Test: More people today than yesterday (significant %)
Sean Ellis test: 40% of users “very disappointed” w/o your product
Financial Test: Revs up & made a profit can fund growth indefinitely
You just know it (and others start to as well)
Example: Product-Market Fit
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Hypotheses
Validate – Customer Development / testing / MVP
Pivot
Product-Market fit
Scale
Process (review)
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Summary
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We have the tool-kit
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Let’s use it …
95% 5%
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to change the odds.
95% 5%
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Questions & ContactJoe ChinFounder & CEO, SourcePadweb + facebook + iPhone + RoR + php + .net
Skype: jchin_SP
