lean launchpad introduction

LEAN LAUNCHPAD INTRODUCTION A SCIENTIFIC APPROACH TO ENTREPRENEURSHIP THAT WORKS

Jolien Coenraets

HOW WOULD YOU START YOUR COMPANY?

Inside the building

Outside the building

TRADITIONAL APPROACH

WHAT IF …

WHAT IF …

start-ups are not just

smaller versions

of companies?

WHAT IF …

OUR HYPOTHESES

Startups are not smaller versions of large companies

Startups are about search, not about execution

Business plans are based on guesses

Entrepreneurs and VCs execute on these guesses

Facts are outside the building

First test hypotheses, then create a fact-based plan

WHAT IS A STARTUP?

A STARTUP =

A temporary organization

designed to search

for a repeatable and scalable

business model

BIGGEST PITFALL

Startups fail because they

confuse search with execution

RESULT

Startups need different tools & processes

to measure their progress

DIFFERENCE BETWEEN SEARCH & EXECUTION

SEARCH BEFORE YOU EXECUTE

WHERE TO BEGIN?

CUSTOMER DEVELOPMENT

Pivot

Customer Discovery

Customer Validation

Customer Creation

Company Building

Search Execution

CUSTOMER DISCOVERY

Test the solution

Verify or pivot

Draw BMC & state

hypotheses

Test the problem

Customer validation

CUSTOMER DEVELOPMENT

Pivot

Customer Discovery

Customer Validation

Customer Creation

Company Building

Search Execution

CUSTOMER VALIDATION

Develop positioning

Verify / metrics that

matter

Get ready to sell

Get out of the building

& sell

Customer discovery

Customer creation

FOUR PERIODS OF DEVELOPMENT C

ash

flo

w

Time

Pure entrepreneurship

PURE ENTREPRENEURSHIP

• Who are our customers?

• What is our value proposition?

• Do I have product-market fit?

• Lots of pivoting


ash

flo

w

Time

Strategic focus

STRATEGIC FOCUS

• What business are we in and what not?

• Know better than anybody else:

o what people will pay

o how many they will buy

o how to distribute

• Develop relationships with partners & suppliers

• From prototype to truly scalable product

• Raising money to build the company

• Recruit a team


ash

flo

w

Time

Systems building

SYSTEMS BUILDING

• Financial controls

• Stable division of labor

• Developing systems of internal control

• Formalizing terms of sale

• Operational systems:

o Production, outsourcing

o Distribution, sales

o Service, warranties


ash

flo

w

Time

Corporate management

CORPORATE MANAGEMENT

• Hiring “outsiders”

• Going public

• Adding the follow-on product(s)

• Shedding those who can’t keep up

• Formalizing the culture

• Rationalizing the strategy

Cas

h f

low

Time

FOUR PERIODS OF DEVELOPMENT

Customer Discovery

Customer Validation

Customer Creation

Company Building

Search Execution

LEAN LAUNCHPAD APPROACH

EVIDENCE BASED ENTREPRENEURSHIP

State your idea

Create an initial business model

Construct a hypothesis for each part of the business model

Test your hypothesis by doing an experiment

Analyze your data and draw a conclusion

Communicate your results

LEAN LAUNCHPAD

Part 1

LEAN LAUNCHPAD

+

Part 1

Part 2

LEAN LAUNCHPAD

+

Agile engineering +

Part 3

Part 1

Part 2

DID YOU INVENT THIS?

NO, STEVE BLANK DID!

STEVE BLANK?

Co-founded 8 startups in 21 years, mostly engineering products

Educator at Stanford, Berkeley, Haas, CalTech & Columbia.

Was the source of inspiration for Eric Ries to create Lean Startup.

Created the customer development method (mid 90s)

Created the Lean Launchpad class (2011)

Published ‘Four steps to epiphany’ (2005)

Published ‘The startup owner’s manual’ (2012)

One of the 11 ‘Notable entrepreneurs teaching the next generation’ (CNBC)

COURSE MATERIALS

MATERIALS

Free online theory in MOOC

https://www.udacity.com/course/ep245

MATERIALS

Book goes into

more detail and is

excellent reference

work

MATERIALS

Explains

business

model

canvas

MATERIALS

How to do your customer interviews? http://vimeo.com/groups/204136

lean launchpad introduction

Education