bare essentials - a practical guide to building a lean startup - karthik ramanujam is currently...

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The Bare Essentials Of “A LEAN STARTUP” Karthik Ramanujam

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“Bare Essentials – A Practical Guide to Building a Lean Startup”, was followed with an extended Q & A session. Background: The 'Lean Startup' term was popularized by entrepreneur Eric Reis on his blog “Startup Lessons Learned” and in his 2011 best selling book - ”The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses”. From last week’s talk and discussion, here are the key Lounge47 takeaways: 1) Lean Startup philosophy prescribes “experimentation over elaborate planning, customer feedback over intuition, and iterative design over traditional upfront big design” 2) Rather than develop a conventional business plan, build a business model after executing key steps - a. Develop hypotheses b. Test hypotheses by getting feedback from potential users, purchasers and partners c. Develop product “iteratively and incrementally with minimum waste of resources”, including time. Basically, Build, Measure & Learn quickly 3) Lean Startup founders discuss their ideas and seek feedback rather than operate in secrecy or “stealth mode” 4) Popular terms - MVP (Minimum Viable Product): a minimum version of product that “cuts the fat, not the essence”; Pivot (a sudden shift in strategy) affecting any and all critical moving parts of the business. The Lean Startup is more a mindset and approach – there is no recipe book and founders have to make judgment calls for their Startups. The Q&A addressed such specific issues.

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Page 1: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

The Bare Essentials Of

“A LEAN STARTUP”

Karthik Ramanujam

Page 2: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

These are my personal opinions on the subject and in no way represent that of any of my past/current/future employer

Page 3: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

OriginThe Lean Methodology teaches you how to drive a company - how to steer,

when to turn, and when to persevere - and grow a business with maximum

acceleration. It is a principled approach to new product development.

It is based on the principles of lean production, a manufacturing methodology

that values a business' ability to change quickly

Page 4: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

So why do startups fail?

1. Building a wrong product

2. Run out of Cash?

3. Not being able to build the right team

4. Lack of unique value propositions – Get Out Competed!

5. Pricing/ Costing issues - “Go to Market Strategy”

Page 5: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

6. Poor Product

7. No Business Plan

8. Poor Marketing

9. Ignoring Customers

10. A Completely mis-timed product

Why do startups fail?

Page 6: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

..and a whole lotta other

reasons

11. Lack of persistence

12. Disharmony on the team/investors

13. Failing to pivot/change direction

14. No mentors or advisers

15. CEO / Founder(s) unable to make decisions

Page 7: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

Hang on. That's not all!

16. Out of control growth

17. Poor accounting controls

18. Not enough cash cushion

19. Operational ineptitude

20. Obscure or marginal niche

Page 8: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ
Page 9: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

Now try this

Validated learning as a measure of progress

Page 10: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

The Hypothesis

Page 11: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

What lean

startups do differently?

Page 12: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

You can’t argue with Validation!

Quotes:

Wait. That is an assumption. We need to validate that

Look at the board. Look at what we learned. You can't argue with validation.

Page 13: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

Define it!

1. Validated learning as a measure of progress, because it favors experimentation over elaborate planning, customer feedback over intuition, and iterative design over traditional “big design up front”development.

2. Although the methodology is just a few years old, its concepts—such as “minimum viable product” and “pivoting”—have quickly taken root in the start-up world, and business schools have already begun adapting their curricula to teach them.

Page 14: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ

Must ReadsRob Fitzpatrick

Page 15: Bare Essentials - A practical guide to building a lean Startup - Karthik Ramanujam is currently Digital Sales & MD, CricHQ