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RUNNING LEAN hashtag: #leanstartup
ASH MAURYA @ashmaurya http://www.ashmaurya.com
products
startups fail
drastically change their original plans
Not a better Plan A but a path to a plan that works.
Running Lean is a systematic process for iterating from Plan A to a plan that works before running out of resources.
are products hard?
The myth of the visionary launch.
Product development gets in the way.
Some learning
Requirement s
Most learning happens here
Development
QA
Release
Very little learning “Greatest risk is not development of new product, but development of customers and markets.” - Steve Blank
Listening to customers is key, but you have to know how.
If I had asked people what they wanted, they would have said faster horses. - Henry Ford
It is not your customer’s job to know what they want. - Steve Jobs
What is Running Lean
Customer Development + Lean Startup + Bootstrapping
Customer Development
Get out of the building. - Steve Blank
Lean Startup
Startups that succeed are those that manage to iterate enough times before running out of resources. - Eric Ries
Bootstrapping
Right Action, Right Time. - Bijoy Goswami
About Me
Life’s too short to build something nobody wants.
Listening to customers is key, but you have to know how.
Disclaimers
Practice Trumps Theory
There are no silver bullets
Running Lean does not guarantee success but raises the odds for building a successful product
Running Lean Overview
Meta-principles
1. Document your Plan A 2. Identify the riskiest parts of your plan 3. Systematically test your plan
Meta-principles
1. Document your Plan A 2. Identify the riskiest parts of your plan 3. Systematically test your plan
Reasonably smart people can rationalize anything but entrepreneurs are especially gifted at this.
Business Model versus Business Plan
Business Model versus Business Plan
A document investors make you write that they don’t read
Business Model versus Business Plan
A single diagram of your business
Problem
Solution
Top 3 problems
Top 3 features
Key Metrics Key activities you measure
Unique Value Unfair Proposition Advantage Single, clear, compelling message that states why you are different and worth buying
Can’t be easily Target customers copied or bought
Channels Path to customers
Cost Structure
Revenue Streams
Customer Acquisition Costs Distribution Costs Hosting People, etc.
Revenue Model Life Time Value Revenue Gross Margin
PRODUCT
Customer Segments
MARKET
Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License.
After Product/Market Fit Acquisition Activation Retention Revenue Referral
Growth metrics
Roadmap
1. Document your Plan A 2. Identify the riskiest parts of your plan 3. Systematically test your plan
What is an experiment?
Speed
Learning
Speed
Focus
Learning
Speed
Chasing your tail
Chasing your tail
Run out of resources
Premature Optimization
Chasing your tail
Run out of resources
The optimal learning loop
Premature Optimization
Chasing your tail
Run out of resources
How to Run an Effective Experiment
Formulate testable hypotheses
Too Vague: Being known as an “expert” will drive early adopters Specific and Testable: Blog post will drive >100 early sign-ups
Create accessible dashboards
A business should be run like an aquarium, where everybody can see what’s going on. - Jack Stack, The Great Game of Business
Communicate learning early and often
Results from last iteration We thought (Hypotheses):
$20K
• Personal Authority would be a viable channel to early adopters • Customers would vote the problem as “must-have” • Customers would pay $49/mo
$15K
Our Customers told us (Insights):
$10K
• Most early adopters did come through blog and twitter • Customers voted #3 problem as “musthave”. Others as nice-to-have • $49/mo works for customers with early traction
Next Steps (Future Experiments): • Test MVP based on “must-have” problem • Test a “Free” model
![[PDF] Running Lean - Google Sites](https://m.moam.info/img/260x300/pdf-running-lean-google-sites_6477fee7097c4737708c512f.jpg)
![[PDF] Running Lean - Google Sites](https://m.moam.info/img/260x300/pdf-running-lean-google-sites_6477cf78097c4737708c1cd1.jpg)
