Running Lean: Iterate from Plan A to a Plan That Works

Description

Introduction A Tale of Two Entrepreneurs A Build-First or Investor-First Approach is Backwards 1 year ago… Off to the races… 6 months later… Catch-22 A Traction-first Approach is the New Way Forward What Determines Success Isn’t Differing Skill Sets But Differing Mindsets The stakes are much higher this time Speed of learning is the new unfair advantage. Succeeding in the new world requires new mindsets You Can’t Afford to Wait For An Idea Whose Time Has Come Steve learns about Minimum Viable Products Don’t Start With an MVP There is a Systematic Approach to Entrepreneurship About Me How This Book is Organized? PART 1: MODEL Part 2: PRIORITIZE Part 3: TEST Is This Book For You? Practice Trumps Theory I. Model 1. Deconstruct Your Idea into a Business Model Sketching Your First Lean Canvas Sketch a canvas in one sitting. Avoid group think. Know that it’s okay to leave boxes blank Follow the 1-page rule Think in the present Remember there is no right order for sketching a Lean Canvas Customer Segments Distinguish between customers and users. Model multiple perspectives Home in on early adopters Problem List the top one to three problems. List existing alternatives. Steve Tackles the Customer Segment/ Problem Quadrant Unique Value Proposition Connect to your customer’s #1 problem. Target early adopters. Focus on outcomes. Keep it short. Answer: what, who, and why. Create a high-concept pitch. Steve crafts his UVP Solution Steve defines a Solution Channels Steve outlines some possible paths to customers Revenue Streams and Cost Structure Revenue Streams Cost structure Steve thinks through his cost structure and revenue streams Key Metrics Happy customers get you paid. Steve aligns on his key metrics Unfair Advantage What do you do if you don’t have an unfair advantage on day one? Steve ponders his unfair advantage story Refine Your Lean Canvas So how do you avoid the Goldilocks problem? How do you know when to split your Lean Canvas? Steve Splits His Big Idea Canvas into Specific Variants Now It’s Your Turn 2. Stress Test Your Business Model Stress Testing Desirability The problem with problems The Innovator’s Gift Steve Realizes He Has a Hammer Problem Run the Innovator’s Gift Test on Your Idea Stress Testing Viability Up for some Excel magic? What is Traction? Don’t create a financial forecast. Start with a Fermi Estimate instead. 1. Set a Minimum Success Criteria Constraint 2. Test Your Business Model Against Your Minimum Success Criteria Constraint 3. Adjust Your Business Model Isn’t this just funny math? Run the Back-of-the-envelope Test on Your Idea Stress Testing Feasibility 3. Pitch Your Business Model The Different Worldviews of an Idea The Story We Tell Ourselves The Investor Story The Customer Story The Advisor Story The Competitor Story Start With An Elevator Pitch An elevator pitch is NOT about your solution An elevator pitch is the beginning of a good story It’s time to craft your elevator pitch Outline Your Origin Story Craft a 5-minute Business Model Story Pitch Get Feedback on Your Business Model Story Pitch Steve Reviews His Business Model Story Pitch With Mary