5. What Is A Startup?
• A startup is a human institution designed to
deliver a new product or service under
conditions of extreme uncertainty
• Nothing to do with size of company, sector
of the economy, or industry
9. Entrepreneurship is
• Goal is create an institution, not just a
• Traditional management practices fail
• Need practices & principles geared to the
startup context of extreme uncertainty
10. Achieving Failure
• If we are building something nobody wants,
what does it matter if we accomplish it:
• On Time?
• On Budget?
• With High Quality?
• With Beautiful Design?
• Achieving Failure = Successfully Executing A
11. The Lean Revolution
“The customer is the most important part of the production line.” - Deming
W. Edwards Deming
(1900 – 1993)
(1912 – 1990)
16. Lean Startup Myths
Lean means cheap. Lean startups try to spend
as little money as possible.
The Lean Startup method is not about cost.
It is about speed.
17. Lean Startup Myths
The Lean Startup is only for Web
2.0/Internet/Consumer software companies.
The Lean Startup applies to all companies that
face uncertainty about what customers will
18. Lean Startup Myths
Lean Startups are small bootstrapped startups.
Lean Startups are ambitious and are able to
deploy large amounts of capital.
19. Lean Startup Myths
Lean Startups replace vision with data or
Lean Startups are driven by a compelling vision
and are rigorous about testing each element of
20. Minimum Viable Product
• The minimum set of features needed to
learn from earlyvangelists
• Earlyvangelists – visionary early adopters
• Avoid building products that nobody wants
• Maximize the learning per amount of money spent
• Probably much more minimum than you
21. Minimum Viable Product
• Visionary customers can “fill in the gaps” on
missing features, if the product solves a real
• Allows us to achieve a big vision in small
increments without going in circles
• Requires a commitment to iteration
• False negative: customers would have liked
the full product, but the MVP sucks, so we
abandoned the vision
• Visionary complex: but customers don’t
know what they want
• Too busy to learn: it would be faster to just
build it right, all this measuring distracts
from delighting customers
23. The AAAs of Metrics
24. Innovation Accounting
1. Establish the baseline
• Build a minimum viable product (MVP)
• Measure how customers behave right now
1. Tune the engine
• Experiment to see if we can improve metrics
from the baseline towards the ideal
1. Pivot or Persevere
• When experiments reach diminishing returns,
it’s time to pivot
25. Five Whys
• A technique for continuous improvement of
• Ask “why” five times when something
• Behind every supposed technical problem is
usually a human problem
• Fix the cause, not just the symptom
A new movement that is transforming the way how new products are built and launched
Entrepreneur is commonly used to describe an individual who organizes and operates a business, taking on financial risk to do so. Intrapreneur - A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product by taking assertive risks and using innovation. What do entrepreneurs do that actually makes a difference? Which customers to listen to Which product/service features to prioritize How to hold people accountable (measure)?
SB – Silicon Valley serial entrepreneur and academician. He is recognized for developing the Customer development methodology which launched the Lean Startup movement. ER - Silicon Valley entrepreneur and author recognized for pioneering the lean startup movement, also a well known blogger within the technology entrepreneur community.
the term startup has been associated mostly with technological ventures designed for high-growth (fast) Operating under fundamental of extreme uncertainty: Who is your customer What product/service do they actually want How to build it into a sustainable business
As entrepreneur you have embarked on a different career. Forget what background you are from Test a hypothesis
Help us to stop waste people’s time
Why? We build things very efficiently that nobody wants. 2006-2009 failures Which companies succeeding in living up to the dreams, time, talent & energy of the founders, employees & investors
Unfortunately deceased men Deming – Everything we do should be gauged by whether the customer cares that we do it
Iterative process of trying to find out who your customer is
Movies are ridiculous
People taking credit when times are good People blaming when times are bad Cause and effect Make reports accessible and user friendly to understand Gain insights to understand why customers behave in a certain manner