Startup Fuze: Lean Startup, Customer Development & Validation Process.

1. Startup
Fuze
June 2014

2. Lean Startup
Customer Development
Validation Process
Startup Fuze
June 2014
Day 1

3. HOLA

4. GRACIAS

6. Entrepreneurship coordinator, serial
entrepreneurs,consultant, teacher,
researcher.
Business & TI
Blogger, Social Media, Startups
Computer Systems Engineer
MBA
IT Management Master Degree
Who is talking?
basket ball, tech, human
complexity

7. The 5 hottest mexican tech blogs:
http://www.seedstarsworld.com/5-hottest-mexican-tech-blogs/

8. @lmalmanza
lmalmanza.wordpress.com
about.me/luismiguelalmanza

9. why you are here?

11. First steps
ç
First steps
@lmalmanza

12. history…

14. 2006: Dozens and dozens of
cloud storage companies

15. VC: “There are a million
cloud storage startups!”
Drew: “Do you use any
of them?”
VC: “No”
Drew: “…”

16. Learn early, learn often

17. Dropbox’s minimum viable product:
!
3 min screencast on Hacker News (Apr 07):
Lots of immediate, high-quality feedback

18. Simple landing page: capture interest/email
address

19. Private beta launch video à 12,000 diggs;
beta waiting list jumps from 5,000 to 75,000 in
one day (Mar 2008)

20. Public launch (Sep 2008): Time to get real

21. Public launch (Sep 2008): Time to get real
Our Web 2.0 Marketing Plan
!
• Big launch at TechCrunch50
• Buy some AdWords
• Hire a PR firm, or a VP of Marketing, or
something

22. Experiment: Paid
search
Hired experienced SEM & affiliate marketing
guy ($$)
Picked out keywords, made landing pages
Hid the free account option for people
arriving via paid search, replace with free
time-limited trial
Went live in early 2009

23. Cost per acquisition: $233-$388

24. Cost per acquisition: $233-$388
For a $99 product. Fail.

25. Experiments failing left
and right
Problem: Most obvious keywords bidded way up
Probably by other venture-backed startups
Problem: Long tail had little volume
Problem: Hiding free option was shady, confusing,
buggy
Affiliate program, display ads, etc sucked too
Economics totally broken

26. But we were still doing well…?
• Reached 1mm users 7 months after launch
• Beloved by our community

27. Fourteen Months to the
Epiphany

28. Typical Dropbox User

29. New strategy: viral
• Give users better tools to spread the love
• Referral program w/ 2-sided incentive
permanently increased signups by 60% (!!)
– Inspired by PayPal $5 signup bonus
• Big investment in analytics

30. Trailing 30 days (Apr 2010) : users sent
2.8 million direct referral invites

31. Results
• September 2008: 100,000 registered users
• January 2010 (15 mos later): 4,000,000
• Mostly from word-of-mouth and viral:
– 35% of daily signups from referral program
– 20% from shared folders, other viral features
• Sustained 15-20%+ month-over-month growth since
launch

32. what is the goal today?

33. – @RAMONSCOTT
“The best entrepreneurship methodology is:
EXECUTION”

34. The rules of the game are different

35. Grid vs cloud
old
new

36. Think and idea, work
on it and…
see whats happen

37. ¡EL COSTO DE INICIAR ES
MÁS BARATO QUE NUNCA!

38. new business rate
98% of startups fail

40. why?
why?

41. most startups fail from
a lack of customer ($)

42. they build the wrong things
for the customers!

43. Why so dumb?
• Love
• Bias
• Passion
• Lack of vision

44. goal: have a chance

45. Source: The Center of Entrepreneurship and Technology / Berkeley

46. What to build?

47. understanding basics

48. lean
lean

49. Startup Company

50. lean startup?

51. Sales + Costs -
$

54. one example

56. Methodologies

57. Marshmallow
challenge

58. marshmellow
challenge

59. LESSONS LEARNED
TED talk

60. Customer
Development

61. Build
customers
first

63. 4 steps to ephifany

65. Customer
Problem
Solution
Product
Market
Company

67. Why is important
customer
perspective?

68. Mentores

69. customer is more
important than you!

70. how?

71. get out of the building

72. what is the
problem?

74. NO

75. Instructions
• Teams (3)
• As many NO´s as you can.
• Unknown people
• Record in video (1 x px)
• Send it to:

76. Validation Process

77. validation
comprobation

78. comprobar que

79. método científico
scientific method
1. Construct hypotheses
2. Test by doing an experiment
3. Validate or invalidate

80. most startups fail from a
lack of customer ($)
there is no process

81. hypotheses =
assumptions

82. experiments
experiments

83. metrics /
documentation

84. take decision
take decision
pivot

85. Types of pivot
• Zoom - in
• Zoom - out
• Customer
segment
• Customer need
• Platform
• Business
architecture
• Value capture
• Engine of
growth
• Channel

86. tools

88. are they important?

91. is a framework

92. Javelin Board

94. ideas
experiments

95. Brainstorm

96. Execution

97. Customers h1
Problems h1
Solution
Risks h1
h2
h2
h2
h2
h3
h3 h4

98. yeahhh, now what?

99. MVP?
minimum viable product

100. – Eric Ries
“The minimum amount of effort you have to do
to complete exactly one turn of the Build -
Measure - Lear feedback loop”

102. how?

103. 1. Exploration

105. observation
observation

106. story board
Story board

107. talk!

108. interviews

109. surveysNot now

110. record, evidence
record, evidence

111. 2. pitch!

112. cold email
cold email

113. cold call
cold call

114. fake ad

116. Walking into a
store and pitching
the owner

117. Meetings, user
groups, conferences
meetings, user groups, conferences
Hand out cards with invite to:

118. landing page

119. options
• launchrock
• unbounce
• checkthis.com
www.unbounce.com

120. www.launchrock.com

121. www.checkthis.com

122. don´t forget the
ACTION
“Singup to be notified when we launch”

123. one example

124. examples

126. demos

127. videos

128. dibujos
drawings

129. maquetas
model

131. real life simulation

132. extra: research

133. OK. Let´s do it.

134. Today
• Javelin Board & at least 2 iterations
• 10 interviews by team

135. Tomorrow
• Proposed MVP
• At least your landing page

136. how i can find people?
where are they?

137. get out of the building

138. ¿fin?

139. I did it!

140. next steps

141. Gracias!

142. contactolmalmanza.wordpress.com
about.me/luismiguelalmanza

143. Imágenes
• flickr.com
• slideshare.com