Lean Canvas &
Experiment Board:
Startup Validation
@vishnugopal

Why?

Because a lot of things
you do in a startup is not
“intuitively” right.

“Gut feel” is wrong a
lot.

1 + 2 + 3 + 4 + 5 + … ∞ =
?
∞

1 + 2 + 3 + 4 + 5 + … ∞ =
- 1/12

“Gut feel” is wrong a
lot.

One way to validate is
to experiment cheaply.

Experiment cheaply =
test as early as possible

1st Tool:
Experiment Board

My Gut Feel Idea:
“A fast search engine to
find cars”

Start here. Brainstorm with stickies, pull it over to the right to start your experiment. Experiments
Customer
Problem
Solution
Riskiest
Assumption
Method &
Success
Criterion
Result &
Decision
Learning
1 2 3 4 5
>OVPZ`VYJZ[VTLY)LHZZWLJPÄJHZWVZZPISL Time Limit: 5 Min
What is the problem? Phrase it from your customer’s perspective. Time Limit: 5 Min
+LÄUL[OLZVS[PVUVUS`HM[LY`VOH]L]HSPKH[LKHWYVISLT^VY[OZVS]PUNTime Limit: 5 Min
List the assumptions that must hold true, for your hypothesis to be true. Time Limit: 10 Min
Need help? Use these sentences to help construct your experiment.
To form a Customer/Problem Hypothesis:
I believe my customer has a
problem achieving this goal.
To form your Assumptions:
0UVYKLYMVY̸hypothesis to be
true, assumption needs to
be true.
Determine how you will test it:
The least expensive way to
test my assumption is...
To form a Problem/Solution Hypothesis:
I believe this solution will result
in XHU[PÄHISLV[JVTL.
To identify your Riskiest Assumption:
The assumption with the least
amount of data, and core to the
viability of my hypothesis is...
Determine what success looks like:
I will run experiment with # of
customers and expect a strong
signal from # of customers.
Project Name: Team Leader Name:
GET OUT OF THE BUILDING!
Download Experiment Board and watch case studies at www.javelin.com © 2014 Javelin. You are free to use it and earn money with it as an entrepreneur, consultant, or executive, as long as you are not a software company (the latter need to license it from us).

Start here. Brainstorm with stickies, pull it over to the right to start your experiment. OVPZ`VYJZ[VTLY)LHZZWLJPÄJHZWVZZPISL Time Limit: 5 Min
What is the problem? Phrase it from your customer’s perspective. Time Limit: 5 Min
+LÄUL[OLZVS[PVUVUS`HM[LY`VOH]L]HSPKH[LKHWYVISLT^VY[OZVS]PUNTime Limit: 5 Min
List the assumptions that must hold true, for your hypothesis to be true. Time Limit: 10 Min
Need help? Use these sentences to help construct your experiment.

Start here. Brainstorm with stickies, pull it over to the right to start your experiment. OVPZ`VYJZ[VTLY)LHZZWLJPÄJHZWVZZPISL Time Limit: 5 Min
First time
car buyers
People
with little
knowhow
about cars
Car selling
showrooms
What is the problem? Phrase it from your customer’s perspective. Time Limit: 5 Min
+LÄUL[OLZVS[PVUVUS`HM[LY`VOH]L]HSPKH[LKHWYVISLT^VY[OZVS]PUNTime Limit: 5 Min
List the assumptions that must hold true, for your hypothesis to be true. Time Limit: 10 Min
Need help? Use these sentences to help construct your experiment.

Start here. Brainstorm with stickies, pull it over to the right to start your experiment. OVPZ`VYJZ[VTLY)LHZZWLJPÄJHZWVZZPISL Time Limit: 5 Min
First time
car buyers
People
with little
knowhow
about cars
Car selling
showrooms
What is the problem? Phrase it from your customer’s perspective. Time Limit: 5 Min
Too many
choices for
cars
Searching
for cars is
slow
They don’t
get reviews
from friends
+LÄUL[OLZVS[PVUVUS`HM[LY`VOH]L]HSPKH[LKHWYVISLT^VY[OZVS]PUNTime Limit: 5 Min
List the assumptions that must hold true, for your hypothesis to be true. Time Limit: 10 Min
Need help? Use these sentences to help construct your experiment.

Start here. Brainstorm with stickies, pull it over to the right to start your experiment. OVPZ`VYJZ[VTLY)LHZZWLJPÄJHZWVZZPISL Time Limit: 5 Min
First time
car buyers
People
with little
knowhow
about cars
Car selling
showrooms
What is the problem? Phrase it from your customer’s perspective. Time Limit: 5 Min
Too many
choices for
cars
Searching
for cars is
slow
They don’t
get reviews
from friends
+LÄUL[OLZVS[PVUVUS`HM[LY`VOH]L]HSPKH[LKHWYVISLT^VY[OZVS]PUNTime Limit: 5 Min
Customers are
only interested
in cost, fuel
efficiency,
List the assumptions that must hold true, for your hypothesis to be true. Time Limit: 10 Min
Terms like
Bhp, Cc is
too
technical
looks
Customers
trust reviews
from friends
Need help? Use these sentences to help construct your experiment.

Start here. Brainstorm with stickies, pull it over to the right to start your experiment. Experiments
Customer
Problem
Solution
Riskiest
Assumption
Method
Success
Criterion
Result
Decision
Learning
1 2 3 4 5
OVPZ`VYJZ[VTLY)LHZZWLJPÄJHZWVZZPISL Time Limit: 5 Min
What is the problem? Phrase it from your customer’s perspective. Time Limit: 5 Min
+LÄUL[OLZVS[PVUVUS`HM[LY`VOH]L]HSPKH[LKHWYVISLT^VY[OZVS]PUNTime Limit: 5 Min
List the assumptions that must hold true, for your hypothesis to be true. Time Limit: 10 Min
Need help? Use these sentences to help construct your experiment.
To form a Customer/Problem Hypothesis:
I believe my customer has a
problem achieving this goal.
To form your Assumptions:
0UVYKLYMVY̸hypothesis to be
true, assumption needs to
be true.
Determine how you will test it:
The least expensive way to
test my assumption is...
To form a Problem/Solution Hypothesis:
I believe this solution will result
in XHU[PÄHISLV[JVTL.
To identify your Riskiest Assumption:
The assumption with the least
amount of data, and core to the
viability of my hypothesis is...
Determine what success looks like:
I will run experiment with # of
customers and expect a strong
signal from # of customers.
Project Name: Team Leader Name:
GET OUT OF THE BUILDING!
Download Experiment Board and watch case studies at www.javelin.com © 2014 Javelin. You are free to use it and earn money with it as an entrepreneur, consultant, or executive, as long as you are not a software company (the latter need to license it from us).

Experiments
Customer
Problem
Solution
Riskiest
Assumption
1 2 3 4

Start here. Brainstorm with stickies, pull it over to the right to start your experiment. OVPZ`VYJZ[VTLY)LHZZWLJPÄJHZWVZZPISL Time Limit: 5 Min
First time
car buyers
People
with little
knowhow
about cars
Car selling
showrooms
What is the problem? Phrase it from your customer’s perspective. Time Limit: 5 Min
Too many
choices for
cars
Searching
for cars is
slow
They don’t
get reviews
from friends
+LÄUL[OLZVS[PVUVUS`HM[LY`VOH]L]HSPKH[LKHWYVISLT^VY[OZVS]PUNTime Limit: 5 Min
Customers are
only interested
in cost, fuel
efficiency,
List the assumptions that must hold true, for your hypothesis to be true. Time Limit: 10 Min
Terms like
Bhp, Cc is
too
technical
looks
Customers
trust reviews
from friends
Need help? Use these sentences to help construct your experiment.

it over to the right to start your experiment. Experiments
Customer
Problem
Solution
Riskiest
Assumption
Method
Success
Criterion
Result
Decision
Learning
1 2 3 4 5
OVPZ`VYJZ[VTLY)LHZZWLJPÄJHZWVZZPISL Time Limit: 5 Min
your customer’s perspective. Time Limit: 5 Min
+LÄUL[OLZVS[PVUVUS`HM[LY`VOH]L]HSPKH[LKHWYVISLT^VY[OZVS]PUNTime Limit: 5 Min
true, for your hypothesis to be true. Time Limit: 10 Min
construct your experiment.
To form a Problem/Solution Hypothesis:
I believe this solution will result
in XHU[PÄHISLV[JVTL.
To identify your Riskiest Assumption:
The assumption with the least
amount of data, and core to the
viability of my hypothesis is...
Determine what success looks like:
I will run experiment with # of
customers and expect a strong
signal from # of customers.
Project Name: Team Leader Name:
First time
car buyers
Too many
choices for
cars
Customers are
only interested
in cost, fuel
efficiency,
looks
Inter view:
More than 80%
GET OUT OF THE BUILDING!
© 2014 Javelin. You are free to use it and earn money with it as an entrepreneur, consultant, or executive, as long as you are not a software company (the latter need to license it from us).

The biggest learning
from the experiment
board?

Get out of the
building!

Don’t build until you know
it’s something that people
want ( can pay for)

2nd Tool:
Brainstorming Tool

Lean Canvas

Business Model
Canvas

Unfair
Advantage
4 5
3 2
8 9
Revenue Streams
LEAN CANVAS
Channels
Customer Segments
Unique Value
Proposition
Problem Solution
Top 3 problems
1
7 6
product market
Customer Acquisition Costs
Distributing Costs
Hosting
People, etc.
Revenue Model
Lifetime Value
Revenue
Gross Margin
Top 3 features
Single, clear, compelling message that states
why you are different and worth buying
Can’t be easily copied or bought
Target Customers
Path to customers
Key
Metrics
Key activities you measure
Cost Structure
Designed by: Date: / / Project: Version #:
This work is adapted from Lean Canvas (http://leancanvas.com/) and is licensed
under the Creative Commons Attribution-Share Alike 3.0 Un-ported License.

Problem Solution
Top 3 problems
1
4 Top 3 features
Key
Metrics
Key activities you measure
Project: !
Problem:
Top 3 Problems
!
What are the
problems you are
trying to solve?
First time car buyers
have too many choices
and no simple way to
pick cars
People want to know only
a few facts about cars:
looks, mileage, cost, not
technical terms
There is no easy way to
get reviews from friends
about cars

Customer Segments
2
Target Customers
Date: / / Version #:
!
Customer
Segments:
Target Customers
!
Who has these
problems?
First time car buyers
People with less technical
knowhow about cars
Car showroom owners

Unfair
Advantage
Channels
Unique Value
Proposition
Solution
3 4 Top 3 features
Single, clear, compelling message that states
why you are different and worth buying
Can’t be easily copied or bought
Path to customers
Key
Metrics
Key activities you measure
!
Unique Value
Proposition
!
USP. Why is your
product different
from competitors
and worth
buying?
I have a team of experts
ready to review cars
I can poll social media
opinion about cars come
up with a comprehensive
sentiment score
I have a unique
recommendation system
for cars from friends

Unique Value
Proposition
Problem Solution
problems
1
4 Top 3 features
Single, clear, compelling message why you are different and worth Key
Metrics
Key activities you measure
Project: !
Solution
!
Top 3 key features
of your solution.
A simple curated list for
cars. e.g: “Best car if
you are starting a
family”
View curated reviews
about cars from Facebook,
Twitter, etc.
Once you select a car,
easily post a survey to
Twitter/Facebook to ask
friends about it

Designed by: Date: / / Version #:
My sentiment analysis
engine is awesome and
hard to replicate
Unfair
Advantage
Customer Segments
Value
Proposition
I have a team of experts
whose sole job is to go
through cars and pick only
5
message that states
worth buying
Can’t be easily copied or bought
Target Customers
!
Unfair Advantage
!
Can competitors
easily copy your
solution? If not,
why?
the best
I have tied up with a lot of
car dealers to promote my
site
3 2

Revenue Streams
Revenue Model
Lifetime Value
Revenue
Gross Margin
LEAN CANVAS
6
market
This work is adapted from Lean Canvas (http://under the Creative Commons Attribution-!
Revenue Streams
!
How do you make
money? What is
the revenue
model?
!
What is the
lifetime value of a
customer?
!
What is the
projected
revenue?
!
What is the
possible gross
margin?
Advertising Revenue
Customers can opt for
insurance through my
site, I get a cut
Advertising
Projections: 10L in Y1
Insurance Projections:
20L in Y1
Gross Margin is High:
~80%

7 product Cost Structure
Customer Acquisition Costs
Distributing Costs
Hosting
People, etc.
!
Cost Structure
!
What are possible
expenses?
!
Customer
Acquisition Costs
(like marketing)
!
Distributing costs
(30% of revenue
in case of App
Store)
!
Hosting
!
People
Marketing Costs: 30L
in Y1
No distribution costs
Minimal hosting costs
Good payment to
experts review
writers: 10L in Y1

1
7 3 8 Acquisition Costs
Key
Metrics
Key activities you measure
Structure
!
Key Metrics
!
What will you
measure for
product success?
!
Measure your USP.
Site visits
Conversions through
site
Insurance purchases
through site

3 2
Channels
Revenue Streams
9
6
Revenue Model
Lifetime Value
Revenue
Gross Margin
Path to customers
!
Channels
!
How will you
distribute to
customers?
!
Channels should
be simple to
understand, low
friction.
Online advertising
App on App Store/Play
Store
Displays in dealer
showrooms

Lean Canvas is to
make you think.

If you are going to spend 3+ years
of your life on a startup,
spending 2 hours exploring it is
not bad :)

Plus, it helps you
write a business plan

Or a product deck

Startup Village is going to
increasingly conduct Fundraising
pitches.
Being prepared is half the journey.

Finis. Questions?