My talk to an MBA class at the University of Washington. It is for startup lessons from the trenches.

1. Bryan Starbuck
April 22nd, 2014
Startup Learnings from
the Trenches
The
counter-intuitive
@BryanStarbuck Bryan@TheStarbucks.com

2. • Serial Founder and CEO
• TalentSpring Founder & CEO. Acquired in 2010
B2B Enterprise SaaS company with Artificial Intelligence / Machine Learning
• SPARKON Founder & CEO.
B2C Online learning & Passion Discovery
• CTO at Crystal Commerce
About Me

3. • Big teams
• No cash-flow pressure to
fast-to-market
• Politics
• Big visibility & less hands on
execution
Bigco vs. Startup
BigCo Startup
• Miniscule team size
• Fast-to-market due to cash flow
• Validate deeply
• Better strategy/positioning
needed
• Better product needed

4. Timeline Segment #1:
Validate Strategy & fit
Stages – of a Lean Startup
Timeline Segment #2:
Build product
Timeline Segment #3:
Post-launch GROWTH
Product build Post-launch growth

5. • Initial idea
• Craft Strategy
• Validate HEAVILY with customers
Stage #1: Validate
Timeline Segment #1:
Validate Strategy & fit
Product build Post-launch growth

6. Validate by Pitch-Deck
" Force Planning in all
Critical Areas"
" Brief enough for
feedback from
Customers,
Employees, Advisors,
Investors, etc. "

7. Pitch Deck PAIN finds your blind spots
Complete ALL of your Pitch-Deck!
He says, “This specific Pitch-Deck SLIDE is PAINFUL”"
"
Response, “You found a Blind Spot in your ANALYSIS skills…
… or in your business”"

8. 10x Healthy Business Problem
10x!
SOLUTION!
10x!
PROBLEM!
1! 2!
Transactions
multiply to a Large
Market Size!
Great Single
Transaction
Economics!
3! 4!
“10-x” refers to the customer have a LARGE problem in their
life, not just another small issue in their life.!

9. " Do NOT use your friends"
" And do not use the startup community""
" Be willing to pay $25 to $50 for 60-minutes for B2C. $50-$100 for B2B professionals.
PayPal, Amazon, iTunes"
" lets you record the dial-in conference call and share the screen.
Cheaply"
Validating from Customers
People from"
Your Social Group are BAD"
" Early Adopters"
" White-Collar employees"
" College educated"
" A-Players or Type-A"
" Advocate change & disruption"
The US and your customers
are more like:"
" NOT Early Adopters"
" NOT A-Players or Type-A"
" NOT Advocating change & disruption"
" Have a budget already fully spent"
" Blue-Collar employees"
" High School only, Community College…"

10. Dating start:
Validate on craigslist
B2C - Dating & CraigsList

11. B2B buyers have a
budget in a spreadsheet
B2B buyers and their Budget Spreadsheet

12. Stages – of a Lean Startup
Timeline Segment #2:
Build product
Product build
80% =
• Perfect strategy & need
• Craft Product
• Fast product building
20% =
• Everything else: Branding, team building,
raising capital, etc.
Post-launch growth

13. Stages – of a Lean Startup
Product build Post-launch growth
Growth
=
Success vs Failure
Timeline Segment #3:
Post-launch GROWTH

14. Strategy

15. • Positioning is your top
strategic skill
• Positioning is the battle for
your mind
• See how…
Purple Cow

16. " BLOG: bryanstarbuck.typepad.com!16
Your Positioning and Uniqueness
Manual
Solution HIGH COST
Market
Leader
LOW COST
Market
Leader
Is Your Startup here or here
High Cost
Low Cost
Old generation New generation

17. Example of a problem
with strategy
Example in the Recruiting industry

18. • Branding is important … but LEAN means fast to market
• 80% in stage #2 is: a) validating strategy & direction, b) brilliant product
design, c) execute building product
• 20% = everything else. 5% of that is branding
Still branding is important. Get
branding done – well – and quickly.
Branding

19. How Do We Find Them?

20. " BLOG: bryanstarbuck.typepad.com!20
Dave McClure marketing Model

21. " BLOG: bryanstarbuck.typepad.com!21
Hotmail.com
GROWTH HACKINGTO: JimFriend@aol.com
From: Me@aol.com
Sent by hotmail.com

22. " BLOG: bryanstarbuck.typepad.com!22
AirBnB
Customer
Post to AirBnB
Post to
CraigsList
GROWTH HACKING

23. " BLOG: bryanstarbuck.typepad.com!23
Digg
Many Websites
Digg.com
GROWTH HACKING

24. " BLOG: bryanstarbuck.typepad.com!
“X Problem” can be solved better by
“Y Solution” which we rock at
24
Blogging
“INBOUND” OR
SEOMOZ STYLE
Facebook Articles
our unique
uniquely

25. Questions?
Bryan@TheStarbucks.com
@BryanStarbuck

26. " BLOG: bryanstarbuck.typepad.com!
Next Steps for Learning (1 of 3)
People often ask how to learn more. Here is the best way:"
ABSOLUTE Must Read! Strategic Thinking or Execution!
Other!
Innovator’s Dilemma On Amazon"
By: Clayton Christensen"
"
Crossing the Chasm On Amazon"
By: Geoffrey Moore"
"
Blue Ocean Strategy On Amazon"
By: W. Kim"
"
"
Good to Great On Amazon"
By: Jim Collins"
"
Maverick On Amazon"
By: Ricardo Semier"
"
"
The Four Steps to the Epiphany On Amazon"
By: Steven Blank"
"
Inspiring Excellence On Amazon"
By: Michael Schutzler"
The Ten-Day MBA On Amazon"
By: Steven Silbiger"
"
Founders at Work On Amazon"
By: Jessica Livingston"
"
"
"
ABSOLUTE Must Read"
Venture Deals On Amazon"
By: Brad Feld"
"
"
Art of the Start On Amazon"
By: Guy Kawasaki"
"
"
"
The Lean Startup On Amazon"
By: Eric Ries"
"

27. " BLOG: bryanstarbuck.typepad.com!
Next Steps for Learning (2 of 3)
People often ask how to learn more. Here is the best way:"
Marketing!
The 22 Immutable Laws of Branding On Amazon"
By: Al Ries"
"
"
Full Frontal PR On Amazon"
By: Richard Laermer"
"
"
Positioning: The Battle for your Mind On Amazon"
By: Jack Trout"
"
The Strategy and Tactics of Pricing On Amazon"
By: John Hogan"
"
"
Purple Cow On Amazon"
By: Seth Godin"
"
"
Other!
Founders at Work On Amazon"
By: Jessica Livingston"
"
"
Startup Weekend On Amazon"
By: Marc Nager"
"
Don’t Make Me Think On Amazon"
By: Steve Krug"
"
"
ABSOLUTE Must Read"

28. " BLOG: bryanstarbuck.typepad.com!
More Learning (3 of 3)
" (My) Bryan Starbuck’s Blog on Company Building:"
" http://bit.ly/StarbuckBlog"
" Dave McClure – Marketing Model for Startups: "
" http://500hats.typepad.com/500blogs/2007/06/internet-market.html"
" http://vimeo.com/26277733"
" http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version"
" http://www.slideshare.net/dmc500hats/startup-metrics-101-367863"
" More from Dave McClure:"
" http://www.slideshare.net/dmc500hats/why-not-to-do-a-startup"
" http://www.slideshare.net/dmc500hats/do-marketing-its-not-evil"
" Presenting to Investors:"
" http://www.slideshare.net/dmc500hats/how-to-pitch-a-vc-aka-startup-viagra-how-to-give-a-vc-a-hardon"
" Strategic economics of SaaS https://salesforce.adobeconnect.com/_a13852757/buildingasuccessfulsaasco/"
" Startup Marketing: http://howtolaunchastartup.com/2011/06/20/21-must-read-resources-for-start-up-marketing/"
" 57 Things I’ve Learned Founding 3 Tech Startups:
http://betashop.com/post/1417413108/57-things-ive-learned-founding-3-tech-companies"
ABSOLUTE Must Read"

29. The New Model for Startups