Presentation to Masters of Entrepreneurship Students in Lux
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Genna Elvin gives a presentation on starting a startup using the Lean methodology. She discusses how her company Tadaweb initially pursued many different markets and product ideas without finding product-market fit. Through iterative testing and pivoting, they discovered their technology was best suited for B2B and government users. She encourages entrepreneurs to test marketing ideas before building, develop an MVP to validate metrics with early adopters, measure the right metrics, and be willing to pivot quickly if those metrics don't look promising. The Lean methodology focuses on short development cycles, customer validation, and data-driven decision making to reduce risks and failures.
Presentation to Masters of Entrepreneurship Students in Lux
- 1. Lux University Masters of Entrepreneurship Presentation 2016
- 2. Hi! I¡¯m Genna Co-Founder of Tadaweb @gennaelvin gelvintw.tumblr.com
- 3. Luxembourg based, growth stage technology company founded in 2011 and now made up of a team of 22 and PIONEERING THE FIELD OF SMALL DATA
- 4. Firstly¡ I am no Startup Queen, Business legend or social Impact God¡ Yet¡
- 5. Rather, I want to use this lecture as a guide on some of the things I wish I had learnt when I was starting out.
- 6. Today I will discuss ? Starting a startup ? The Lean Methodology ? Product Market Fit ? Testing
- 7. Ok¡ So you want to start something awesome?
- 8. You dreaming of how awesome it will be¡
- 9. After all, you are already planning out your o?ce decor¡.
- 10. Reality can hit hard and fast in the beginning.. Innovation hub, startup HQ
- 11. I don¡¯t wanna burst your bubble¡
- 12. 90% of startups ´Ú²¹¾±±ô¡
- 14. You could stop there, get a job, have ?nancial security, work 9-5 and vacation time¡
- 15. You could stop there, get a job, have ?nancial security, work 9-5 and vacation time¡ and spend the rest of your life regret never trying¡
- 16. Or you could say to those stats - stick ¡®em
- 17. But words aren¡¯t actions¡ So how can you be the startup in the 10%?
- 18. Let me introduce you to this guy¡ (you may know him, and if you do, great - 10 points)
- 19. Eric Ries - God behind the Lean Startup Model
- 20. But what is the lean startup and why is this approach so fricken awesome?
- 21. The Lean model is methodology that aims to shorten product development cycles by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and validated learning. The central hypothesis of the lean startup methodology is that if startup companies invest their time into iteratively building products or services to meet the needs of early customers, they can reduce the market risks and sidestep the need for large amounts of initial project funding and expensive product launches and failures
- 22. AKA
- 23. LEARN AKA
- 24. LEARN BUILDAKA
- 27. Before you go thinking that this can only happen once you have built your product, you would be mistaken¡
- 28. The Lean methodology can be used early on even in the ?rst critical step for any company.
- 29. PRODUCT
- 30. PRODUCT MARKET
- 32. Is there a su?cient demand in a clearly de?ned marketplace for my product that can also ensure scalability? AKA
- 33. Let me take you on a personal journey with the lean approach and product market ?t my company
- 34. Before we even incorporated we showed our technology to a lot of people¡ friends, investors, colleagues¡
- 35. They were all pretty impressed and excited¡
- 36. BUT
- 37. Almost every single person had a di?erent (and supposedly amazing) view on what our technology could be used for¡ Including¡
- 40. Global Media Source Flow Analytics
- 41. Web Data Usage Analytics
- 42. The Pinterest of Web Data
- 43. Stock Flow Sentiment Detection
- 45. FOR
- 46. B2B
- 47. B2C
- 48. B2G
- 49. B2B2C
- 50. B2B2B
- 54. What Happened?
- 55. 5000 users¡
- 57. 5000 users¡ Seed Investment¡ AND - an article in TechCrunch
- 58. 5000 users¡ Seed Investment¡ AND - an article in TechCrunch
- 59. Awesome, huh?
- 61. ¡°Vanity metrics make you feel good, but they don¡¯t o?er clear guidance for what to do¡± - Eric Ries
- 62. The 5000 users were from multiple di?erent segments, all using the technology in di?erent ways with no clear pattern or insight¡.
- 63. And the article was amazing validation for our technology, not to mention great publicity, but it caused yet another saw in users that caused even more confusion and even more arti?cial growth¡
- 65. So what did we do?
- 66. We stopped ?ring a machine gun into a bunch of pigeons and decided we needed to tighten up our product market ?t¡
- 67. We need to break things down into smaller pieces and think like a sniper
- 68. We selected on key market, with one key user case and we tested, tested, tested¡
- 69. When we didn¡¯t see true progress based on real metrics (aka, not vanity metrics) we PIVOTED
- 70. A pivot is a "structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth."
- 71. Steve Blank states that it¡¯s about changing the plan, not the execution.
- 73. After lot¡¯s and lot¡¯s of testing, we discovered that our technology was too complicated for typical B2C consumers. The learning curve required extensive training and suited the demands of B2B and B2G.
- 74. So this is great¡ but how does it e?ect you guys?
- 75. 1. You have a great idea
- 77. 2. Before building, you test the market
- 78. Google Adwords, or Facebook ads are great for this. You can test ads across multiple di?erent pro?les before building anything, in order to measure the best results
- 79. 2. You build an MVP
- 80. There needs to be strong emphasis on the ¡°minimum.¡± There is no point building something people won¡¯t use, even if it has bugs, ship it to early adopters.
- 81. 2. Measure (the metrics that really matter)
- 82. For example, at Tadaweb we found the rate of new users was actually a VANITY METRIC. What really mattered was their return rate and interaction with our SDK
- 83. Make sure your metrics measure what is truly valuable to ?nding your product market ?t
- 84. 2. Build / React
- 85. If you are noticing that the key, real metrics are not good¡
- 86. ¶Ù°¿±·¡¯°Õ
- 87. ¶Ù°¿±·¡¯°Õ WAIT
- 89. ¶Ù°¿±·¡¯°Õ WAIT TOO LONG!
- 90. Another key to the unleashing the power of the lean model is ¡°speed¡±
- 91. It can be easy as the founder to DENY EVERYTHING
- 92. But this denial often only puts o? the inevitable
- 93. So go, ?nd an amazing idea. Before even building, test, test, test the market. Once validation of real metrics (NOT VANITY METRICS) starts to go well, build an MVP and get early adopters on board. Measure, measure, measure. Are they key metrics still performing? Yes? Awesome! No? Maybe you need to pivot? AND FAST
- 94. THANKS