Switch from startup to

company building Minimum Viable Product

mode, transitioning
from development
Summarize these in a
Iterate
teams searching for Build demand by business model canvas,
answers to functional ramping up marketing which is a diagram of how Key terms
departments that can and sales and scaling you will create value for Pivoting
execute a model. up the business.
you and for your A startup is "a temporary Fail fast + continually learn

Once a model is
customers.
organisation designed to
Agile Development
proven, begin to search for a repeatable
execute. 1. You start with only and scalable business Business Model Canvas
untested hypotheses.
And again.
model." Key books 2003 - The Four Steps to the Epiphany (Blank)

2. Get out of the building! 2010 - Business Model Generation (Osterwalder

And again. Once you've learned
Ask potential users, purchasers, and Pigneur)
from your tests, make
small changes -- iterate partners for feedback on every
Do this fast, by
-- or larger ones -- pivot developing " Minimum element of the business model, 2011 - The Lean Startup (Eric Ries)
-- and then test again. Viable Products " and including service features, pricing,
using those to get distribution channels, customer
feedback. acquisition strategies. 2012 - The Startup Owner's Manua (Blank and Dorf)

Key Principles Describes size of

Hire for learning,
Lean Startup opportunity, problem to be Startups are
solved, and the solution.
nimbleness, and
speed
3. Practice Agile Includes 5-year forecast for LOOKING FOR a
Development income, profits, cash flow
Assumes it's possible to
business model, not
Constant feedback
yields better results Customer Feedback matters
predict these things
before executing the idea
EXECUTING a pre-
than staged more than secrecy. The
death of "stealth mode ."
This is critical at a time
when the traditional
Probably why 75% of designed one
unveilings. startups fail
economy is shedding jobs. 1. Business Plans rarely survive first contact with
People need a new way of customers
New realities engaging in the economy - Traditional
Data must be Key metrics are:
make lean - fewer workers, more
entrepreneurs! Business 2. 5-year plans are usually fiction - almost always a
startups possible waste of time
good enough, customer acquisition cost Planning
lifetime customer value
not necessarily churn
3. Startups are not like large companies with master
plans. Success is due to adapting, iterating, improving
complete! viralness
NOT:
Could launch initial ideas as they learn from customers

income statement
balance sheet "a new, more
Service developers invest thousands of
cash flow statement
Principles would entrepreneurial hours to get business ready for launch,
often with little or no customer feedback!
increase growth
and efficiency of economy." --> Only after months or years of
development do entrepreneurs learn that
cheap, open-source software (ex> GitHub) Business schools are all small customers may not need or want much of
"abandoning the businesses. what they're offering!
Cloud services (ex> Amazon web services) business plan as the
template for
entrepreneurial
education."
Ease of accessing off-shore manufacturers Large companies EX> GE's investment in battery technology since 2010
Business plan may reap the biggest
Super-angel funds make smaller investments competitions are being Corporations need to gains from Lean
possible (ex> Y Combinator, TechStars) replaced by business keep inventing new Startup principles
model competitions. business models to
be competitive high cost of getting first customer
Crowdfunding (ex> Kickstarter)
Start-up growth
long tech development cycles
constrained by:
Instant availability of innformation/advice online few people have appetite for the risks of
founding or working at a start-up
venture capital industry structure means
there are just a few firms, though they are
often willing to invest big sums
most expertise is concentrated in a few
parts of the world