The Lean Startup
Third Presentation and by far the most insightful was by Jerome Engel, Entrepreneurship Teacher at UC BERKELEY.
Jerrry and Steve Blank have developed a model called the “Lean Startup”. I read an article about it in Niza a few weeks ago in the Harvard Business Review. Everything he talked about yesterday validated my thoughts about this model.
Lean Startup Launch PAD
Research funding at UC Berkeley is 1.7 Billion a year. This money goes directly to creating new knowledge for the world. Entrepreneurs and the Government work in unison to stimulate innovation for a better planet.
This presentation is for MBA students and usually takes around 5 hours. He gave a intense summary of it in 30 minutes. Innovation comes from Individuals
Berkeley’s motto is Leading through innovation
Innovation is Discovery + Application
The tool of every entrepreneur is innovation. Entrepreneurs need change. Big companies are constantly searching for incremental change they can manage. However A “Disruptive Techology” is the the surprise to the BIG COMPANIES. Entrepreneurs know hot to capitalize on the surprise and exit.
Basically, the internet we know of in the wall is completely moving into the cloud. Everything will be mobile internet. Barcelona is going to become the mobile capital of the world. Spain has the most smartphone users in Europe. The internet is literally going to be everywhere.
This is my chance is to build something that a big enterprise sees as scalable. They are three types of entrepreneurs:
- there are knowledge creator’s and researchers,
- there are business creators,
- and then there are business harvesters.
It all comes down to three things when we are talking feasibility:
Collaborate with others, apply your resources and capitalize on opportunity.
Starts with investigation, then Market Penetration which is where your need for seed $ exist.
Adapt the vision for the future based on market demand.
First, I am going to define the process of the new startup.
I am taking what I know now which is basically that another 2-3 billion people entering the smartphone community they are going to need WiFi, bandwidth and some awesome integrations to city applications.
There are a couple different types of startups there are:
- lifestyle start ups
- social startups: solving a social problem
- small biz:known target, known product
The goal is basically to create a highly scaleable model that solves for: a unknown customer and unknown features. The perception before even knowing. A scalable startup is born to be big but its all about the search process.
It is about the discovery of the most efficient and effective business model. THAT IS IT.
It used to be that startups are small versions of a one day very Large Company. THIS IS NOT THE CASE ANYMORE.
Startups are the search. No first business plan will ever survive. It cannot possibly. Everything is changing on a daily basis. The first contact with customers has to be a failure. You need to disect exactly where the model failed and adapt.
Be nimble and gather as much research to create a scalable model and you will also reduce your cost in time & money. It’s all about the search. Startups are just temporary known experiments designed for a scaleable and workable business model. Startups need unique tools. It is the business model and a hypothesis of how it will change based on market demand.
Every startup needs to to talk to its customer. Understand exactly where the need is and adapt the product or service. The hypotheses, the design experiments the test and the adapt with your insight. The team is the most important and the best. The startup is nimble. The PIVOT in the right direction with your experiment is key.
Test the model at all times. It will work in cities around the world and be scalable. You can get an opinion at all times in this global world.
This is just an except but what if you paid people at all times to take surveys around a business and then you had a 24 hour feed back system for your startup specified by geo-graphical market. I digress, you have to know the global customer problem and then take the logistics and apply it to the glocal solution. Know the value of your technology and know exactly what need it fulfills.
The example Jerry gave yesterday was: “100 face to face in 10 weeks is the minimum”. Why not turn that into 100 a day with my “X”.
Maybe I will pay people to give feedback to Start-ups. Once again I digress.
You have your customer development team and then you have your strategy the your process and the WHOLE OBJECTIVE IS BASICALLY:
- Discover the model,
- TEST it with your customer development
- PIVOT with the assessment of your agile team
Basically respond to the results. That’s why every app has the “rate us now popup”.The search process is the key of it all and Persistence!