Create a Minimum Viable Product – – The Lean Startup: Why This and Why Now?
Create a Minimum Viable Product – – The Lean Startup: Why This and Why Now?
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mvp-workshop-presentation
On Github JangoSteve / mvp-workshop-presentation
Create a Minimum Viable Product
Day 1
Workshop Info Hosted by: Grand Circus In association with: Alfa Jango
The Lean Startup: Why This and Why Now?
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Why this?
- Lean manufacturing and the Toyota way
- "When optimizing for each piece, the whole must suffer"
- Continual feedback
- Building a viable product
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Why now?
- Industry
- Economy
- Tools
- Competition
- Attention
- Experience
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The Art and Science of creating your MVP
* Go through MVP presentation (through "Metaphor" slide)→
Thinking small, thinking simple, who are you building your MVP for? Customers or investors?
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Know thy audience
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Know thy audience customer
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Know thy audience customer(and market)
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Your Target Customer Can Change Over the Life of the Startup, from One Stage to Another
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Examples
- Startup Weekend: participants → the judges → (not startup weekend)
- Typical Startup: early adopters → normal customers
- Funded Startup: early customers → investors → late customers
- Scratching an itch: yourself → others like you
- Facebook: Harvard students → Boston-area universities and Ivy League → other universities → high schools → everyone else → businesses → brands
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Bootstrapped
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Bootstrapped
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Funded
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Funded
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Funded
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Present Your Business Model Hypothesis
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Markets and approach, Customers, Channels, Pricing, Assumptions
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Markets and approach
- B2B
- Bag the Elephant
- B2C
- Can't target everyone
- Bottom-up planning
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Customers and Channels
- Focus
- Context and Commonality
- Realistic (bottom-up)
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Pricing
* Pricing software * Value saved * Competitors * Shot in the dark * Bottom-up * Perceived value * Story about selling to enterprise (audio interview) * Double it↓
Assumptions
* Value assumption * Growth assumption * What are your assumptions? (revisit from business model hypotheses)→
Customer Discovery
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Customer Development Manifesto
A Startup Is a Temporary Organization Designed to Search for A Repeatable and Scalable Business Model - Steve Blank and Bob Dorf - The Startup Owner's Manual * Steve Blank Customer Development Manifesto (http://steveblank.com/2012/03/29/nail-the-customer-development-manifesto/)↓
There Are No Facts Inside Your Building, So Get Outside
Pair Customer Development with Agile Development
Failure is an Integral Part of the Search for the Business Model
If You’re Afraid to Fail You’re Destined to Do So
Iterations and Pivots are Driven by Insight
Validate Your Hypotheses with Experiments
Success Begins with Buy-In from Investors and Co-Founders
No Business Plan Survives First Contact with Customers
Not All Startups Are Alike
Startup Metrics are Different from Existing Companies
Agree on Market Type – It Changes Everything
Fast, Fearless Decision-Making, Cycle Time, Speed and Tempo
If it’s not About Passion, You’re Dead the Day You Opened your Doors
Startup Titles and Functions Are Very Different from a Company’s
Preserve Cash While Searching. After It’s Found, Spend
Communicate and Share Learning
Startups Demand Comfort with Chaos and Uncertainty
- Steve Blank and Bob Dorf - The Startup Owner's Manual
* Steve Blank Customer Development Manifesto (http://steveblank.com/2012/03/29/nail-the-customer-development-manifesto/)
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Customer Discovery - Enterprise
- Steve Blank - Four Steps to the Epiphany * Steve Blank enterprise startup Customer Discovery diagram (http://steveblank.com/2010/02/25/customer-development-for-web-startups/)
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Customer Discovery - Web Startups
- Ash Maurya - Customer Development Checklist for my Web Startup * Ash Maurya web startup Customer Discovery diagram (http://steveblank.com/2010/02/25/customer-development-for-web-startups/)
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Vision, Features & Benefits, Testing Your Business Model Hypotheses
* Long-term vision * Features vs. benefits (weighing, looking at cost/benefit ratio, example of building something complicated or simple that gives 80% of the benefit) * Ways to test hypotheses↓
Business Model Canvas
- Alexander Osterwalder - businessmodelgeneration.com - (in PDF) * Fill out business model or lean canvas * Alexander Osterwalder - http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf
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Lean Canvas
- Ash Maurya - Why Lean Canvas vs Business Model Canvas? - (in PDF) * Fill out business model or lean canvas * Ash Maurya - http://blog.diotalevi.com.s3.amazonaws.com/leancanvas.pdf * Do customer/problem sections first * List viable alternatives, even including "nothing" for pains that the customer may not deem large enough * Customers + users (segments) * UVP - Charles Kettering, the famed inventor and head of research for GM, said “a problem well-stated is half-solved.” * Channels - cheap vs expensive, inbound vs outbound, direct vs indirect * Revenue - pricing - bottom-up, competitors, shot in the dark
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Developing Hypotheses
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Customer Perception of the Problem and when to ignore it
"If I had asked people what they wanted, they would have said faster horses."
- Henry Ford
"It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them.""
— Steve Jobs
* Why Steve Jobs didn't listen to customers - https://www.helpscout.net/blog/why-steve-jobs-never-listened-to-his-customers/
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One Perspective
"Of course we don't fault people for making requests. We encourage it and we want to hear what they have to say. Most everything we add to our products starts out as a customer request. But, as we mentioned before, your first response should be a no. So what do you do with all these requests that pour in? Where do you store them? How do you manage them? You don't. Just read them and then throw them away... You can't forget what's important when you are reminded of it every day."
- 37Signals - Getting Real
I don't necessarily agree with this, but find it important to be aware of the extremes.
* Example of carcode importer frequency
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Putting It Into Perspective
"Customers care about their problems NOT your solution."
- Dave McClure
"Any innovative company struggles with how much to listen to customers. Most realize that you cannot trust them to tell you what your next new product will be."
- Mario D’Amico (Cirque du Soleil)
* It's not that customers are dumb, and they're not trying to be uncreative or boring. They're just more worried about their problems than your solutions.
* It's not that you should discard their feedback and suggestions. But you also don't want to blindly follow or implement them.
* Working with customers though, especially early customers, can really help guide the vision early on. Use judgement and know when the business is proven enough to persue the vision.
* Example of carcode importer frequency
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Find Early Customers to be Evangelists
"On average, loyal customers are worth up to 10 times as much as their first purchase."
- White House Office of Consumer Affairs
* Example of jspkg early users and emails
* Implementing features from early customers helps foster evangelists.
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Develop your “Low-Fidelity” Product
- video MVP
- concierge MVP
- Wizard of Oz MVP
- Smoke test
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MVP: What [not] to build
See MVP Startup Weekend presentation - skip "Know thy customer" through "bootstrapped/funded" slides, then present examples slides through end→