Lean LaunchPad e@UBC Lessons Learned presented at iHub Nairobi 2014.08.12

Lessons Learned

Lean LaunchPad (LLP) Accelerator Program

@iainveriginAugust 2014

I’m in Kenya with

UBC Sauder Social Entrepreneurship

@UBC_SSEestablished 2006

Kibera, Mathare, and Mathare

Who Are You?

• iHub Startups• UBC SSE Kids• Local Entrepreneurs• Local University Students • Mentors• iHub Staff

LLP & Customer Development @ UBC

• 2008 - 12 MBA Customer Development, Iain Verigin

• 2012 Q2 LLP pilot, 5 Teams, Iain Verigin

• 2012 Q3 LLP educator workshop 2012, Paul Cubbon

• 2013 Q1 large scale LLP, 10 teams, Iain & Paul

• 2013 Q2 LLP Genomics, 5 Teams, Iain

• 2013 Q4 LLP, 10 teams, Paul + Blair Simonite

• 2014 1Q LLP Genomics, 5 teams, Iain

• 2014 1Q LLP, 10 Teams, Paul & Blair

• 2014 2Q LLP Genomics, 5 Teams, Iain

• 2014 2Q LLP, 10 Teams, Blair & Liz Newton8 LLP Workshops

What is LLP allAbout?

“A Startup is a temporary organization in search of a scaleable, repeatable,

and profitable business model” – Steve Blank

Most Startups fail from lack of customers … not lack of

product– Steve Blank

LLP is a rigorous search for customers and business models

(it requires the Primary Investigator(s) to be directly involved )http://vimeo.com/79755368

To Create a Customer

Drucker says …

“There is only one valid definition of business purpose: …”

Page 20 “The Essential Drucker”

How Does LLP Fit With Traditional Business School

Curriculum?

It is “Complementary”which means “It’s totally different”

source: Steve Blank

More Detailwrt/

Lean LaunchPad

May 2013 HBR

http://steveblank.com/2013/05/06/free-reprints-of-why-the-lean-startup-changes-everything/

LLP Life Sciences 2013(Steve Blank)

• Introduction — Reinventing Life Science Startups– 2013/08/19 Therapeutics and Diagnostics

– 2013/08/20 Medical Devices and Digital Health

– 2013/08/21 Evidence-based Entrepreneurship

• Lessons Learned - LLP for Life Science– 2013/10/11 This Will Save Us Years

– 2013/11/04 Value Proposition and Customers• Insights Video - Customer Segments - differences between Therapeutics, Digital Health, Medical Devices, & Diagnositics.

– 2013/11/13 Well They “Should” be Our Customers

– 2013/11/11 Distribution Channels• Insights Video - Channels

– 2013/11/18 Revenue Streams• Insights Video - Revenue Streams

– 2013/12/02 When Customers Make You Smarter

All links are from www.steveblank.com

What Does Search Look Like?

Execution Looks Like This

Bill Buxton, “Sketching User Experience”

Search Looks Like This

Bill Buxton, “Sketching User Experience”

What Are We “Really” Gonna

Do?

What Are We “Really” Gonna Do?

• In Class– 8 * “Iain” Presentations

• Process, Theory, Personal Skills

– 4 * “You” Project Update Presentations

• TAM/SAM, Canvas, Experiments, #Calls

How the Class Works

- The “Real Work” is outside the class.- Class is ~25% of time required.

What is Under the Hood?

Theory & Models

Customer Development

Steve Blank

The Business Model Canvas

Design & Test

CustomerDiscovery

CustomerValidation

CustomerCreation

ScaleCompany

Customer Discovery

• Stop selling, start listening– There are no facts inside your building, so get outside

• Test your hypotheses – Two are fundamental: problem and product concept– Problem Hypothesis & Solution Hypothesis

Customer Discovery: Rules

• Rule 1: Facts are outside the building, opinions are inside.

• Rule 2: Solve a problem that customers say is important and valuable

• Rule 3: Does the product concept solve that

problem?

Customer Discovery: Exit Criteria

• What are your customers top problems? – How much will they pay to solve them

• Does your product concept solve them? – Do customers agree?

– How much will they pay

• Can you draw a day-in-the-life of a customer – before & after your product

• Can you draw the org chart of users & buyers

Your Work?

In a Nutshell

• Sketch -- What You Know.

• Determine What You Need to Learn About.

• Design “People” Experiments to help you learn.

• Test -- Do the Experiments.

• Synthesize

• Repeat…. Repeat … Repeat

TEAM NAME HERE

Who are our most important

customers?

What are their archetypes?

What Job do they want us to get done for them?

What Key Activities do we

require?Manufacturing?

Software? Supply chain?

Which of our customer’s

problems are we helping to solve?

Which customer needs are we

satisfying

What are the Key Features of our

product that match customers

problem/need?

Who are our Key Partners?

Who are our key suppliers?

What are we getting from them? Giving

them?

What are the most important costs inherent in our business model? Fixed? Variable? How do we make money? What’s the revenue

model? Pricing tactics?

Through which Channels do our

Customer Segments want to be reached?

What Key Resources we

require?Financial,

physical, IP, HR?

Sketch out your hypotheses

1

3

4 2How will we Get, Keep and Grow

Customers?

5

6 7

8

9

:Service Journey V0.1:

test

:Score Card: ( Hypothesis Summary)

Guess GuessGuess Guess Guess

GuessGuess

Guess Guess

Test & Synthesize – Outside Class

• Interview & Experiment on Customers & Prospects (10-15 / wk)

• Blog Your Progress

• Develop a Storyline (Narrative)

• Synthesize Your Results

• Revise Canvas & Plan – Repeat Steps

Keep Track

Week n

Week 1

Week 2

ProgramDetails?

What’s In It For You?

What you get• Guidance to tried and tested resources• Trained, experience instructors (coaches)• An industry mentor• Administrative support in the program• Opportunity to move towards being investor ready• Access to other e@ubc resources and support

What you commit to give (or……consequences….!)• Your time and commitment as a team to the process for 2 months• To read and prepare as directed• To get out of the building and undertake primary customer research• Commitment to blog progress regularly• A willingness to be open-minded!

is an entrepreneurial connected community

Examples&

Past Participants

Program Marketing

• Genomics UBC– Genomics Homepage

– Genomics Media Room

• Aspect (3D Bio Printing)– e@ubc - Aspect Biosystems

• General– What is Lean LaunchPad? (From Experience of Past Participants)

Lessons Learned &

Future Work

Lessons Learned

Teams that finish are much better prepared for the

startup journey

Lessons Learned

It’s way hardercomplicated,& different

than you thought

Lessons Learned

Source Austin Kleon

Lessons Learned

Source Austin Kleon YC’s Startup Curve is a Good Reminder, too

Lessons Learned

A third of the teams do NOT finish.

( Let them die. )

Lessons Learned - Synthesis

• We need Pre-LLP training– Most teams are not prepared for rigour and discipline of LLP

(never mind becoming a company)

• We need Post-LLP followup– startups take years not months.

• Startup Skills are different than Big Company – Most teams do not have personal skills required to perform

Customer Discovery

– Most mentors can’t help here (they are big company)

Solutions Being Tested

• Pre LLP– Office Hours Bi-Weekly ( industry Mentors )– e101 available for all UBC students– “Startup Weekend” at UBC Fall and Winter

Term• Post LLP

– “Informal Board” led by Team ( e@UBC )– Government Funding. – Office Hours Bi-Weekly

Solutions - Post LLP -- Informal Board & Mentoring

• Brad Feld’s Startup Boards is a great resource• Focus on non-financial mentors in early days

• The team needs to take charge and select it’s own mentors and informal board.

Solutions - Personal Skills Required

• Communicate• Listen• Help ( How to be of Service)

• Don’t Be an Asshole!• Be Remarkable!

-- I have a full presentation on this <smile>Dating Skills for Engineers

The End