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Scalable Start-Up Goal is to solve for: unknown customers & unknown features. Born to be Big
Scalable Start-Up August 2011 2,014,100 August 2009 January 2009 905,980 October 2007 400,980 +1530% 131,600 +688% +304% There are now 2,014,000 Facebook accounts active in Ireland, which means that 44pc of Ireland’s 4.5m population is on Facebook Source:http://www.siliconrepublic.com/new- media/item/23292-now-2m-facebook-accounts-in/ Exit Criteria Search Execute Scalable Business model found Large Total Available Market > €300m Company Startup Can grow to €50/year
Entrepreneurship is Management Entrepreneurship is an institution, not just a product, and so it requires a new kind of management specifically geared to its context of extreme uncertainty.
Validated Learning “search for a repeatable scaleable business model” Startups exist to learn how to build a sustainable business. This learning can be validated scientifically by running frequent experiments that allow entrepreneurs to test each element of their vision.
Build-Measure-Learn The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or preserve. All successful startup processes should be geared to accelerate that feedback loop.
Innovation Accounting To improve entrepreneurial outcomes and hold entrepreneurs accountable, how to measure progress, how to set up milestones & how to prioritize work.
Problem 1 1st problem is caused by the allure of a good plan, a solid strategy, and No business plan survives thorough market research. Startups first customer contact operate with too much uncertainty. Startups do no know yet who their customer is or what their product should be. Pic Source:http://businesswheel.com/
Problem 2 2nd problem is that after seeing traditional management fail to solve this problem, some entrepreneurs and investors have thrown up their hands and adopted the “just do it” school of startups.
Solution = Lean Startup Taiichi Ohno Shigeo Shingo Lean Startup takes its name from the lean manufacturing revolution that Taiichi Ohno and Shigeo Shingo are credited with developing at Toyota.
Traditional Product Development Waterfall Requirements Specifications Design Problem: known Solution: known Implementation Unit of progress: Verification Advance to the next stage Maintenance
Agile Product Development “Product Owner” or in-house customer Problem: known Solution: unknown Unit of progress: A line of working code
Lean Start-up Pivot Customer Development Hypotheses, Experiments, Problem: unknown Insights Solution: unknown Data, Feedback, Insights Agile Development Unit of progress: Customer Validated learning Development: My Model Requires about customers you to get out of the building ($$$)