innovative entrepreneurship - noorderlingen
TRANSCRIPT
Innovative Entrepreneurship
Noorderlingen workshop - February 4th 2015
Leon PalsChairman Startup Foundation
Founder of several of its initiatives
@leonpals [email protected]
Startup FoundationAn independent not for profit [or for impact] organisation,
driving innovation by supporting startups
Who are you?Name & expertise
Problem?
“A startup is a temporary organisation searching for a repeatable and
scalable business model”- Steve Blank
EffectuationA framework for entrepreneurial thinking
Causal thinking=
Managerial thinking =
Choosing the best means to achieve a goal
Effectual thinking=
Entrepreneurial thinking =
Imagining new ends with a given set of means
Effectuation principles
To get you started on the right track
12
Bird in handWho are you and what do you have?
14
Affordable lossWhat can you afford to lose?
LemonadeEmbrace surprises
LemonadeEmbrace surprises
And always bring salt & tequila
19
Crazy quiltForm partnerships to cover your weaknesses
21
Pilot in the planeFocus on what you can control
Pilot in the planeControl vs. predict
Because the future is madeControl vs. predict
Let’s do a small gameWe love games.
“If I can predict the future, I can control it”
- ?
“If I can predict the future, I can control it”
- Any experienced manager
“If I can control the future, I don’t need to predict it”
- ?
“If I can control the future, I don’t need to predict it”
- Any experienced entrepreneur
“Great Scott!”- ?
“Great Scott!”- You
Innovative entrepreneurship
Or Effectuation, Customer Development, Lean Startup and dozens of canvasses.
Startup ≠ small version of big company
Startup ≠ small version of big company
Startups are temporary organisations in search of a repeatable and scalable business model
Startup ≠ small version of big company
Startups are temporary organisations in search of a repeatable and scalable business model
search = innovative
Startup ≠ small version of big company
Startups are temporary organisations in search of a repeatable and scalable business model
search = innovative = uncertain
Companies execute
Which is what they are good at
They have managers that predict, operate and plan using something called the Waterfall method
WebvanThe tale of a Startup that wanted to be a Company
$1.200.000.000
$1.200.000.000Nothing left, except
Nine out of ten fail
Nine out of ten failBecause they try to be a company:
Plan, Build & Launch
Time
Waterfall
Time
Risk Waterfall
Time
Risk
Agile
Waterfall
Startups don’t fail because of product development
Most of us know what we can build
Startups fail because of a lack of customers
Just because you build it, that does not mean they will come
By Steve Blank
Customer development
Customer development
Customer Discovery
Customer Validation
Customer Creation
Company Building
Pivot
Search
Customer Discovery
Customer Validation
Customer Creation
Company Building
Pivot
Search
Customer Discovery
Customer Validation
Customer Creation
Company Building
Execute
Pivot
Search
Customer Discovery
Customer Validation
Customer Creation
Company Building
ExecuteLearn
Pivot
Search
Customer Discovery
Customer Validation
Customer Creation
Company Building
ExecuteLearn Confirm
Pivot
Search
Customer Discovery
Customer Validation
Customer Creation
Company Building
ExecuteLearn Confirm AARRR
Pivot
Search
Customer Discovery
Customer Validation
Customer Creation
Company Building
ExecuteLearn Confirm CEO hired
Pivot
AARRR
Search
Customer Discovery
Customer Validation
Customer Creation
Company Building
ExecuteLearn Confirm CEO hired
Entrepreneurs start to think about leaving
Pivot
AARRR
Lean Startup =Customer development combined with Agile product development
Search
Customer Discovery
Customer Validation
Learn Confirm
Pivot
LearnLearning is mostly done by talking to potential customers.
But can also be achieved through observation and customer feedback
Search
Customer Discovery
Customer Validation
Learn Confirm
Pivot
ConfirmConfirmation can be achieved through several kinds of tests, depending on what you want to confirm.
Customer Discovery
Customer Validation
Customer Creation
Company Building
Pivot
Build
Measure
Learn
Lean Startup Process Build Measure Learn Loop
Ideas
ProductData
Validated learningDecreases uncertainty
Validated learningDecreases uncertainty
Minimises risk
Validated learningDecreases uncertainty
Minimises risk Increases chances of success
Seriously thoughYou do not launch a startup, you steer it to success.
It is okay to start like this
Time for a challenge
Challenge Who knows?
W O R K S H O P I N T R A C T O
Challenge Who knows?
Illustrations by Esther Gons @wilg
Illustrations by Esther Gons @wilg
Customer Conversations
Learn Confirm
Why would you have Customer Conversations?
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What would you like to be more sure of?
TopicsGenerate topics
Customer DevelopmentGa het gesprek aan
W O R K S H O P I N T R A C T O
Dear mom,
Don’t you think I’m great?
Love, Your son
It’s not just your momPeople want to be helpful, more than being honest.
How can we get facts?
How can we get facts?- Talk about their life, not your concept
How can we get facts?- Talk about their life, not your concept - Ask about specifics,
How can we get facts?- Talk about their life, not your concept - Ask about specifics, from the past
How can we get facts?Anything future related is worthless as we cannot predict the future with certainty.
Do you think this is a good idea?
Do you think this is a good idea?
How do you currently deal with this?
How do you currently deal with this?
When does this happen?
When does this happen?
Would you buy a product that would solve this?
Would you buy a product that would solve this?
Please show me how you do this?
Please show me how you do this?
Can you talk me through the last time that you experienced this?
Can you talk me through the last time that you experienced this?
How much would you pay for this?
How much would you pay for this?
How much does this currently cost you?
How much does this currently cost you?
How do we do this as casual as possible?
Scene of the customer
Start with softball [easy to handle] questions
How do you screw it up?
How do you screw it up?- Use a script or survey instead of topics
How do you screw it up?- Use a script or survey instead of topics - Talk about your business, instead of listening
How do you screw it up?- Use a script or survey instead of topics - Talk about your business, instead of listening - Try to sell, instead of learn
Learn Confirm
Good or bad conversation?
“That’s so cool. I love it!”
“That’s so cool. I love it!”
“There are a couple of people I can introduce you to, when you’re
ready.”
“There are a couple of people I can introduce you to, when you’re
ready.”
“What are the next steps?”
“What are the next steps?”
“Looks great, let me know when it launches.”
“Looks great, let me know when it launches.”
“Can I buy the prototype?”
“Can I buy the prototype?”
“When can you come back and talk to the rest of the team?”
“When can you come back and talk to the rest of the team?”
Commitments
Commitments- Time [next meeting, taking part in trial]
Commitments- Time [next meeting, taking part in trial] - Reputation risk [introduction to peers]
Commitments- Time [next meeting, taking part in trial] - Reputation risk [introduction to peers] - Cash [letter of intent, deposit, pre-order or sale]
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JFDI- Set topics - Do at least 5 to 10 Customer Conversations
Prototypes
Test Design
Learn Confirm
Minimum Viable Product
Minimum Viable
Product Test
Minimum effort towards validated
learning
Search
Customer Discovery
Customer Validation
Customer Creation
Company Building
ExecuteLearn Confirm CEO hired
Entrepreneurs start to think about leaving
Pivot
AARRR
Search
Customer Discovery
Customer Validation
Learn Confirm
Pivot
ConfirmConfirmation can be achieved through several kinds of tests, depending on what you want to confirm.
Test casesOptions are merely limited by your imagination
Video + Landingpage
75.000 signups
Wizard of Oz
Proved people would buy shoes online
Concierge
Created early customers
A test drives validated learning
But what do we need to learn?
You need to find your riskiest assumption, and a way to (in)validate it.
The riskiest assumption is the one that, if proven false,
will kill your business
How to design a test
How to design a test- Set your learning goal
How to design a test- Set your learning goal - Form a falsifiable hypothesis to test
How to design a test- Set your learning goal - Form a falsifiable hypothesis to test - Make it measurable
How to design a test- Set your learning goal - Form a falsifiable hypothesis to test - Make it measurable - Set a fail condition
How to design a test- Set your learning goal - Form a falsifiable hypothesis to test - Make it measurable - Set a fail condition - Set a time-box
Build
Measure
Learn
Lean Startup Process Build Measure Learn Loop
Ideas
ProductData
If you cannot fail, you cannot learn
About half your tests should fail
Accept failure as validated learning
Swallow your pride, become successful
JFDIDesign a test, conditions:
Must have a learning goal, based on a falsifiable hypothesis and measurable.
Also think about the time-box and fail conditions.
What have we learned?
Let’s get real
Ideas are generic
Jargon & BuzzwordsMake a Startup less actionable
Tests
Why get hands on?
Why get hands on?
"Entrepreneurship is something you learn best by doing it”
- Paul Graham
But most of all
It is realityThe red pill
“Put your ideas into practise, they will improve if you take note of what happens next”
- Leon Pals
“Put your ideas into practise, they will improve if you take note of what happens next”
So why do we see so many peers struggling?
So why do we see so many peers struggling?
Fear
“The greatest barrier to success is the fear of failure”
Sven Goran Eriksson
What is Lean Startup?
“Do a little, see if it works”- Tendayi Viki
Theorising/debating/planning
Might make you sound smart, or not
Lessons learned
Gain credibility
You might create something
Red pill
Assumptions Meetings Theory
Your comfort zone
Blue pill
Validated learnings Running tests
Experience
Where the magic happens
Thank you. Any questions?
@LeonPals
Thank you. Any questions?