eng491 technology entrepreneurship building a lean, scalable startup fall 2011 – fall 2012 emre...

ENG491 Technology Entrepreneurship Building a Lean, Scalable Startup Fall 2011 Fall 2012 Emre Oto www.eng491bu.org Follow on Twitter: @eng491

Week 12 Executive Summary of ENG491 Technology entrepreneurship is a hard, human science that follows the scientific method Todays class: Final words of wisdom for aspiring entrepreneurs ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #1 Planning is guessing Refer to your business plans as business guesses, your financial plans as financial guesses, etc. Plans let the past drive the future They inhibit our ability to improvise You have the most information when you are doing something Make decisions not far in advance but right before you do something ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #2 Growing vs Expanding Premature scaling is the primary cause of death for startups All companies have a right size Grow slow and see what feels right Small does not have to be a stepping stone, it can be a destination itself ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #3 Start making something Stop contemplating, build a Minimum Viable Product, and start testing Build something that makes a dent in the universe, and something that you would need yourself Ideas are cheap and plentiful, what counts is how you execute == Validated Learning No time is no excuse, manage your time, start now ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #4 Outside money is Plan Z You need upfront investment only if you are building a factory or a restaurant Todays businesses are mostly IT based service economy You may need less than you think Get to basics, start building the MVP, and iterate Take on as little outside cash as possible ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #4 Outside money is Plan Z Risks of taking outside cash: You give up control Cashing out begins to trump building a quality business Spending other peoples money is addictive Its usually a bad deal You may become investor centric instead of customer centric Raising money is distracting == Spend time building the product instead ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #5 Less is a good thing Embrace your constraints Constraints kindle creativity and innovation Limited resources force you to make the most of what you have got You never have enough time/money/people/experience Throw less at a problem ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #6 The 80/20 Principle (Pareto Principle) Build a kick-ass half rather than a half-assed whole Start chopping, you cannot be building 10 things at the same time Focus on the epicenter If I took this away, would what I am selling today still exist? Make the best out of the epicenter Ignore the details early on ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #7 Do not delay decisions Decide based on validated learning and pivot Not deciding is not an option Make calls early and often to reduce batch size = Move with small decisions vs big decisions = Big decisions are harder to make Fail early, fail often, fail fast Long projects kill morale Make the call, make progress, get the product out the door while you still have the motivation and momentum ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #8 Launch Now In the Lean Startup, the product is the experiment You cannot learn from the customer unless they experience the product Build for the few, and not for the man Save bells and whistles for later Stop imagining what is going to work. Find out for real ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #8 Good enough is fine Find the solution that delivers maximum efficiency with minimum amount of effort Solve problems with simple, mundane solutions, its fine if it gets the job done You dont always need to demonstrate glamorous skills in each solution Dont waste your resources You are a resource too: Beware from sheer effort overload ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #9 Do not copy ideas Copying skips understanding how you grow You have to understand why something works If you copy you lose all the substance and understanding to base future decisions on If someone else has already done the bulk of the work you are copying ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #9 Do not copy ideas Copying skips understanding how you grow You have to understand why something works If you copy you lose all the substance and understanding to base future decisions on If someone else has already done the bulk of the work you are copying Two things protect you from copycats: Validated learning Pouring yourself into the product: Make yourself a part of it ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #10 Underdoing your competition New market disruption targets nonconsumers In new markets/resegmented markets, you cant compete by oneupping the competition Solve simple problems in a simple way Out of clutter, find simplicity (Albert Einstein) ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #11 Focus on yourself Do not obsess about competition or potential competition Focus on your own learning and discovery Focusing on the competition makes you reactive (rather than visionary) Obsessing about competition may dilute your own vision ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #12 Say no to customers Dont add bananas to your lasagna because a few customers wanted so Follow the masses Feel free to say no to customers ..but provide a solid justification why the answer is no You cant be everything to everyone Remember early adopters vs mainstream Keep solid positions in negotiations of all sorts otherwise customers will think you are playing with them ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #13 Laying low for a while is good Being obscure is a great initial position to be in Be happy you are in the shadows Start small Use your time to make mistakes without the whole world hearing about them You dont want everyone to watch you starting your business Use this early period to take risks and learn ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #14 Opinion Leadership Companies building new markets or niche markets enjoy one advantage: Opinion Leadership 1. Build an audience Speak, write, blog, tweet, make videos 2. Outteach (You can seldom/never out market, but you can always outteach) Earn loyalty by teaching, this is beyond marketing ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #15 Everything you do is marketing Perception is reality Marketing is not a department, everything you do is marketing Marketing is not a set of individual events, it is everything you do So be careful ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #16 Success does not happen overnight You will not be a big hit right away, you will not get rich quick Sustained growth takes time Start building your audience, start getting people interested in what you have to say, you will build a sustained Share of Voice ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #17 Human resource is everything Never delegate a task before you have performed it yourself or have strong expertise on how it must be done Hire slow, and hire when only absolutely necessary Capabilities are more important than resums or GPAs Pass on great people if necessary ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

Idea #18 Be honest to customers Own your bad news and own it sincerely Honestly be concerned about the fate of your customers Expectation management is incredibly important: State, in very clear terms, what you will deliver and when ENG491 Technology Entrepreneurship Week #12 Key Lessons Top 18

eng491 technology entrepreneurship building a lean, scalable startup fall 2011 – fall 2012 emre...

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