Uploaded byBlaz Kos
The Lean Startup Basics and Intro for Beginners
The document outlines key principles and advice for startups, emphasizing the importance of understanding customer needs and avoiding the creation of unwanted products. It highlights the challenges of entrepreneurship, the necessity for lean methodologies, and the value of rapid testing and adaptation. Ultimately, it encourages aspiring entrepreneurs to focus on delivering real value and operating with agility in a competitive landscape.
More Related Content
Similar to The Lean Startup Basics and Intro for Beginners
The Lean Startup Basics and Intro for Beginners
- 1. MASTER OF STARTUPS SERIES LEAN STARTUP INTROFOR BEGINNERS www.geekhouse.si/en
- 2. BLAZ KOS • 10+years working with start-ups • Management of university incubator, technology park and business angel network • Management of two start-up accelerators and co-working space • PODIM Conference – one of the biggest conferences in Alps-Adriatic region • 600+ lectures in CEE • Mentored over 300 start-ups • Two handbooks about startups, 1500+ pages on two blogs I am on a life mission to make the world a more innovative, organized and transparent place to be by helping individuals, organizations and communities achieve their peak potential and an entirely new level of performance.
- 3. www.AgileLeanLife.com An entirely newlevel of personal performance.
- 5. I HAVE ANIDEA.
- 6.
- 8.
- 9.
- 10.
- 11.
- 12.
- 13.
- 14.
- 15.
- 16.
- 17.
- 18.
- 22.
- 23. The vast majorityof start-ups fail not because they couldn't build a product, but because no one wanted the product. Steve Blank
- 24. No business plansurvives the first customer contact. – Alexander Osterwalder
- 25. SUCCESSFULLY EXECUTING A BAD PLAN Youbuild a product… • on time • on budget • with high quality • and beautiful design But nobody wants it ACHIVING STARTUP FAILURE
- 26. THE BIGGEST WASTE OF TIME,MONEY, ENERGY, SKILLS, PASSION, LIFE… IS BUILDING SOMETHING NOBODY WANTS.
- 27.
- 28.
- 29. Welcome to creative capitalism/ added value economy Source: Richard Florida, Creative Class
- 30. Creative capitalism trends •Individualization and egomania • We want everything and we want it “now” • Shopping and travelling, fun and beauty • Big mobility of nations • Business environment is totally unstable • Global and really tough competition • The world is flat • Total market saturation (in the most countries) • People are more lonely and unhappy being more connected • High level of interactivity • Big demographic changes
- 33. Be different… andbetter
- 35. We have togive up the notions that we can: 1) Accurately describe the past 2) Predict the future 3) Manufacture it There is no such thing as a visionary! It‘s only deep understanding of customer!
- 36. Innovation comes soquickly these days that one transformation has not reached the mainstream in its lifecycle adoption curve before the next is upon us. •Short life cycle of products •Constant innovation
- 37. To prosper throughthese changes, whether as an individual or a business, you must be • fast, • efficient, • and value-creating.
- 38. You must belean, agile and sexy. You must think quick & act fast.
- 40. Lean Entrepreneurs • Scalablestart-up founders (the next big thing) • Lifestyle business founders • Intrapreneurs • Educators and Consultants • Government Change Agents • Investors … • Small-business founders • Solo practioners
- 41. It‘s easy totalk about „lean“. It‘s hard to be LEAN.
- 42. Doing a Startupis a Lesson in Pain & Sacrifice.
- 43. Don‘t do astart-up • It‘s not cool • You probably won‘t make any money • You like your quality of life and regular pay check • You love your girlfriend more than your start-up • Your idea probably sucks • You will have to fire people • Someone will sue you • You don‘t know marketing and selling • Are you a loser or a leader? Source: Dave McClure
- 44.
- 45. START:UP LIFESTYLE • DEFAULTOUTCOME: FAILURE • 100% FOCUS • MAIN FOOD IS PIZZA • EMOTIONAL ROLLER COSTER • IT‘S NOT A JOB LEARNING SPEED: 500 KM/H
- 46. • Ultra geeks/hustlers,best in their generation • No personal money problems, no worries • (International) experience and leverage • Established team before start-up story • Beginning of the new trend
- 47. START-UP A human institutiondesigned to create something new under conditions of extreme uncertainty. Eric Ries
- 48. The Lean Startupprovides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster. ENTREPRENEURSHIP = MANAGEMENT - Eric Ries
- 49. LEAN IS NOT EASY MAGIC COSTLESS WITHOUTFAILURE (OPPOSITE) PAINLES NO QUICK RESULTS
- 50. LEAN MYTHS Lean meanscheap It‘s about speed It‘s only for IT companies All companies that face uncertainty Small bootstrapped start-ups Ambitious companies that are able to deploy large amount of capital Replace vision with data Driven by a compelling vision, testing everything
- 51. • Optimize efficiencyin all value-added activities • Eliminate or minimize all non-value-added activities • Fake feeling of progress • LOWER THE RISK • INCREASE SUCCESS RATE
- 52. MURA = STANDARDTACT TIME MURI = NO BOTTLE NECS MUDA = TOTALLY USELES (7)
- 53. GENERAL PRINCIPLES • Addnothing but value (eliminate waste) • Build quality in • Defer commitment • Deliver fast • Respect people • Optimize the whole, not the parts • Cause and effect • Create knowledge (focus on learning) • Early, rapid feedback ELIMINATE WASTE (FAT) • Reduce time from order to cash
- 54. 7 TYPES OFWASTE • In-process inventory • Anything other than the finished product = Partially work done • Over production • Anything produced but not sold / used = Extra features • Extra processing • Rework, reprocessing = Re-learning • Transportation • Unnecessary movement of materials / product = Handoffs • Motion • Every extra step = Task switching • Waiting • Downtime because an upstream activity is late = Delays • Defects • Product not conforming to specifications
- 55. TYPICAL CAUSES OFWASTE • Layout (distance) • Long set-up time • Poor work methods • Lack of training • Functional organizations • Technology Gaps • Little understanding of the entire process • Historic supervisory roles • Irrelevant performance measures • Lack of workplace organization • Supplier quality/reliability • Poor communication • Avoidable interruptions • Complexity
- 56. Waste in alean start-up (value economy) are those activities that do not produce learning about the market and customers. INSIGHT! • What is core value? • What solution provides the value? • To whom the value is provided? • How to market, sell and deliver the value? • How to capture the value?
- 57. Learning organization • Databefore rhetoric • Use data to resolve conflicts • Use data to measure progress • Use data to make inform decisions • Testing before execution -> Experiment to reduce risk • Reduce market and technical risks • Test new ideas • Optimize results • Customers before business plan -> Understand them deeply • Continuously learn • Make data-based decisions • Continuously improve Source: Lean Entrepreneur
- 58. The Irony • TheWay to go big is to focus small • One of the biggest entrepreneur traps is to be all things to all people MONEY LIVES ON THE FOCUS ISLAND!
- 59. • Demand (foryour product) • Ability (for your team to make it) • Desire (you have to care!) • You‘re good at • That you want to do • Can make money doing DO SOMETHING FIND INTERSECTION Just do it
- 61. DON‘T START A BUSINESS YOU‘REGOING TO HATE!
- 62. BE SURE YOU CAN MAKEMONEY DOING IT!
- 63. ELEMENTS OF SUSTAINABLECOMPANIES CLARITY OF PURPOSE: Summarize the company’s business on the back of a business card. LARGE MARKETS: Address existing markets poised for rapid growth or change. A market on the path to a $1B potential allows for error and time for real margins to develop. RICH CUSTOMERS: Target customers who will move fast and pay a premium for a unique offering. FOCUS: Customers will only buy a simple product with a singular value proposition. PAIN KILLERS: Pick the one thing that is of burning importance to the customer then delight them with a compelling solution. THINK DIFFERENTLY: Constantly challenge conventional wisdom. Take the contrarian route. Create novel solutions. Outwit the competition. TEAM DNA: A company’s DNA is set in the first 90 days. All team members are the smartest or most clever in their domain. “A” level founders attract an “A” level team. AGILITY: Stealth and speed will usually help beat-out large companies. FRUGALITY: Focus spending on what’s critical. Spend only on the priorities and maximize profitability. INFERNO: Start with only a little money. It forces discipline and focus. A huge market with customers yearning for a product developed by great engineers requires very little firepower. Source: Sequioa Capital
- 64. Source: The StartupManual
- 65. THE LEAN START-UP TOOLKIT •Different start-up types • Different market types and market size • Vision and hypotheses • Build – Measure - Learn • Customer discovery (get out of the building) • Minimum Viable product • Pivot • Innovation accounting • Engines of growth • Business model Canvas / Lean Canvas etc.
- 69. (sources and references)Learn More Steve Blank @sgblank http://steveblank.com/ Eric Ries @EricRies http://startuplessonslearned.com/ Ash Maurya @ashmaurya http://ashmaurya.com/ Dave McClure @davemcclure http://davemcclure.com/ Alex Osterwalder @AlexOsterwalder http://alexosterwalder.com Brad Feld @bfeld http://feld.com/