the lean start up
DESCRIPTION
The Lean Start UpTRANSCRIPT
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The Lean Startup Matt Coen Second Street [email protected] @mcoen
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Lean Startup Principles Entrepreneurs are everywhere.
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How many of you work for startups?
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“A startup is a human institution designed to deliver a new product or service under condition of extreme uncertainty.” - Eric Ries
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Nothing to do with size, sector of the economy, or industry.
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How many of you work for startups?
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Lean Startup Principles Entrepreneurs are everywhere. Entrepreneurship is management.
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Why Startups Fail?
1. The allure of a good plan, a solid strategy, and thorough market research.
2. Just do it! If management is the problem, chaos is the answer.
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STARTUP =
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WE NEED TO TEST
OUR ASSUMPTIONS
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STOP WASTING
PEOPLE’S TIME
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Entrepreneurship is Management
§ Traditional management practices fail. § Management as taught by MBAs
§ Need practices and principles geared towards the start up context of extreme uncertainty.
§ Not just two guys in a garage.
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Lean Startup Principles Entrepreneurs are everywhere. Entrepreneurship is management. Validated learning.
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THE PIVOT
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The Pivot
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Speed Wins
If we can reduce our time between pivots, we increase our potential for success before we run out of time, money, or patience.
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Lean Startup Principles Entrepreneurs are everywhere. Entrepreneurship is management. Validated learning. Build – Measure – Learn
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Achieving Failure
§ If we are building something nobody wants, what does it matter if its done: § On Time § On Budget § With High Quality § With Beautiful Design
§ Does it matter if you successfully execute a bad plan
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IS IT ENOUGH TO LEARN
SOMETHING?
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A STARTUP EXISTS TO LEARN HOW TO
BUILD A SUSTAINABLE
BUSINESS
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MVP = MINIMUM
VIABLE PRODUCT
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Minimize Total Time Through the Loop
IDEAS
CODE DATA
BUILD LEARN
MEASURE
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Lean Startup Principles
Entrepreneurs are everywhere. Entrepreneurship is management. Validated learning. Build – Measure – Learn Innovation Accounting
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STOP FOCUSING ON
VANITY METRICS
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Three Learning Milestones
1. Establish the baseline: – Build a minimum viable product. – Measure how the customer behaves right now.
2. Tune the engine: – Experiment to see if we can improve metrics from the baseline to
the ideal.
3. Pivot (Persevere): – When an experiment reaches diminishing returns, it’s time to
pivot.
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EXERCISE #1
ASSUMPTIONS
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EXERCISE #2
EXPERIMENTS