cheatsheets/the-lean-startup.org

Intro

learn, build, measure feedback loop

A lean startup promotes a minimal viable product. It create a science of entrepreneurship. It consists of three stages: learn, build, measure. It operates between two extremes

learn

build

measure

everything is an experiment

observe, DO NOT ask

|-----------------------------------+---------------------+-----------------------------------| | build it perfectly then sell | build,learn,measure | Just do it | |-----------------------------------+---------------------+-----------------------------------| | What if you build a great product | Do people want your | Don't waste time planning. | | that no one wants? | product? | Put on your shoes and do it. | | Is spending 6 months and lots of | | The problem here is that | | $ to build something that no | build it | you are just operating in | | one wants worth it? | | chaos. With no plan, you have | | | measure | a hard time measuring success. | | | | This is very stressful. it is | | | | running in circles trying to fly. | | | | | |-----------------------------------+---------------------+-----------------------------------| Figure out what customers want. Make a hypothesis. Now build a SIMPLE product. With just features enough that the customer wants.

Show a product and gage interest?

Ask myself? Do I need to build anything at all?

Does anyone want this thing?

Minimum viable product

I could simple make a page and say, I am going to make this thing. I am discovering interest. Do you want it?

Lean production says waste is anything that doesn't create value for the customer.

The lean startup says waste is that which doesn't lead to validated learning.

what is waste? and validated learning?

If you are embarrassed to release the product, then you are probably releasing an minimum viable product.

Any effort that does not help you to understand what a customer wants, is waste. Eliminate it.

Validated learning is what is minimally necessary to discover what customers want.

How do you gage what customers want? Are your metrics changing? Do you have more subscribers? Do you have more downloads? Do you have more sign ups? Are you getting more emails? Are you making more money? Pick some things to measure.

A startup's goals is to synthesize a vision and the needs of your customers.

A good startup is running hundreds of experiments to discover the needs of the customer every month.

3 types of MVP

video mvp dropbox showed a video that showed a easy to use file

sharing tool. But the video was fake. The product didn't even exist.

concierge mvp

I focus my product on a few individual customers. I see their interest. Do they want to use this thing? Then I can expand from there.

The Wizard of Oz

the 3 engines of growth

You pretend that you have invented a fancy technical solution, and you have customers use the product. What the customer doesn't know, is that humans are providing the solution. If customers like the product, then you can create the fancy technical solution.

Startups don't fail, they drown. A successful startup defines, what they DO NOT do. They avoid feature creap.

Sticky engine

These businesses attract customers for life. We track the customer acquisition rate and the rate at which customers leave.

The viral engine

gillette

For each customer that signs up, that customer brings a new customer. To be a success, ideally each customer needs to attrack at least 1.1 new customer. Anything below 0.5 is probably not so great.

the paid engine

social networks

CPA cost per acquisition

LTV life time value

pivot or persevere

ecommerce businesses.

Should I keep using my strategy? Or should I change my strategy.

establish a baseline with build measure feedback

attempt to tune the strategy to be more successful. You can say something like, we are currently at 500 customers, and each are paying $3 per month. In 3 months, we expect to see 800 customers each paying $3 per month. If you are slowly getting there, then keep moving.

types of pivots

Change your selling strategy

3 months later...pivot or persevere?

charge for the product

use adds and give the product away for free.