lean entrepreneur

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A Disruptive Wave is Building

Volatility, Uncertainty,Opportunity.

Those whocontinuously create

new value for new customers.

Winners

Lean Entrepreneurs Surf Uncertainty

The culture around you

Your company culture

Old school startup

Lean Startup

Business plan

Business model

What is Lean?

• Elimination of waste in the production and delivery of value to customer

Value Stream

• Producing a known product (mini-van) for a known consumer (soccer mom)

• Value-add activities (assemble part)• Non value-add activities (forklift parts

across warehouse)

Lean Objective

• Lose waste:– Make value-add activities more efficient– Eliminate non value-add activities (if

possible)– Must maintain value to customer

Measurement of Waste

• Excess Inventory• Excess Labor • Unused or scrap raw material

What is Lean Startup?

• Don’t know value• Don’t know customer• Elimination of waste in

discovering value and customer

Lean Startup Value Stream

• If you don’t know what value, how do you know what activities are wasteful?

Lean Startup Measurement of Waste

• Validated Learning

How do you build something people need?

Customer Interaction & Segmentation

The Lean Entrepreneur

The Lean Entrepreneur

Data & Actionable Metrics

The Lean Entrepreneur

Innovation Spectrum

Optimize inside out

Passion

Activation

Funnel

Acquisition

Reach

Engagement

Market Segment & “Value Stream”

your market

• Product-Market ft is driven by nailing core value proposition for hyper segmented markets

• Growth is determined by pursuing multiple segments over time.

• Size of opportunity is determined by size & number of segments

Bowling Pin Strategy

market segmentation

• People who share the same pain and speak the same language.

segmentation clues• Different level pain or passion

• Seek to solve problem differently

• Require different marketing

• Require different distribution

• Require different sales

• Not necessarily demographic-based

• Not “verticals”

Segment MatrixCriteria \ Segment

Depth of Pain Budget Market

SizeTime to

MVP Reach Values

Sole Chef H M M H M H

Team ind. H H M H M H

Small Corp M H H M L M

Big Corp M H H L L L

Where do they“hang out?”

Pain or Passion

Impact ofaddressing

pain/passion

Who Influences

them?

Market Segment

CustomerCustomerSegmentSegment

AwareAware

IntriguedIntrigued

Convinced

Convinced

TrustingTrustingHopefulHopeful

SatisfedSatisfed

Passionate

Passionate

Value Stream Discovery

Business ModelAwareAwareIntriguedIntriguedConvince

dConvince

d TrustingTrustingHopefulHopefulSatisfedSatisfedPassionate

Passionate

GrowthEngine

MVP Conversion Funnel Acquisition

Why

Company Activity

DesiredBehavior

Metric

CustomerState

COMPANY:Over achieveson value prop;Offers referral

incentive

CUSTOMERBEHAVIOR:

Refers product;resubscribes

METRIC:Referrals;

MustHaveScoreLifetime value (LTV)

Passionate

CUSTOMER is passionate because:Own business grows

Having used the product for several months, the customer is seeing her own company grow. Your product has helped her achieve this. She is PASSIONATE about your product.

She resubscribes to your product AND takes you up on your offer to get a month free if she refers the product to others and they buy.

COMPANY:Provides

wizard, survey tool,

dashboard;“instruments”

product

RESULTINGBEHAVIOR:

Continues to use the product in a specifc way

over time

METRIC:Engagement -

Sends survey every 2 wks;Views dashboard daily

Satisfed

CUSTOMER is satisfedbecause: is able to see market signal for own

product

The customer is using the product on a regular basis and it is doing what was promised.

She is SATISFIED with your product.

She uses the assumption wizard, the survey tool, and the dashboard on a regular basis.

COMPANY:Overcome

‘blank slate’;Offers free

‘getting started’support

RESULTINGBEHAVIOR:Uses wizard,sends survey

METRIC:Activation

Creates and Sends survey

Hopeful

CUSTOMER is hopeful because: wants specifc

problem solved, egwants to track market signal

The customer has purchased. She is eager to get started, but also may have feelings of regret, wondering if it was the right decision.

She is HOPEFUL your product works as promised and addresses her need.

To test, she logs in, documents her assumptions, creates survey, and sends it out.

COMPANY:Allows customer

to use demofeatures;

FAQ allays lastminute fears;

Final phone call

RESULTINGBEHAVIOR:Purchases

METRIC:Pays

Convinced

CUSTOMER is convincedwhen:

Has demo’d the product and believes it is a good

ft

The customer successfully demo’d the product and believes the product will work for her.

She is CONVINCED your product will work.

She buys the product.

COMPANY:Inside Sales

calls customer;offers reference;

talks aboutdemo program

RESULTINGBEHAVIOR:Wants to try

product

METRIC:Signs up for trial

Trusting

CUSTOMER is trustingwhen:

Impressed with testimonials and reference

was glowing.

The customer reads testimonials and TRUSTS your business.

She wishes to demo the product.

COMPANY:Messaging/Positioning

Video

RESULTINGBEHAVIOR:

RequestsContact

METRIC:Sales Call

Intrigued

CUSTOMER is intriguedwhen:

Product sounds like it’spositioned for her;

Benefts sounds right

Having read the messaging that states that this will help her business grow, she believes the product might be a good ft.

She is INTRIGUED about the product.

She would like to speak with a sales person and talk to a reference.

COMPANY:Reach out to 3rd party

blogger

BEHAVIOR:Visits company

Web Site

METRIC:Unique Visitors by

referral

Aware

CUSTOMER:Reads frst learns product

reading about it on ablog.

Having discovered the product via a blogger she respects, she is INTRIGUED about the product.

She visits your web site to read more.

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Thank You!

• Twitter/Facebook/LinkedIn: @brantcooper• email: brant@marketbynumbers.com• Blog: Market By Numbers

• Book site: http://leanentrepreneur.co