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turning products
to new businesses
!
salim@foundercentric.com
@SaintSal
foundercentric.com
@foundercentric
Evolving Products Into New Businesses - International Institute Of Business Analysis
– Lean Startup London, 2009
“I wish I knew that sooner.”
slow decisions
kill startups.
Evolving Products Into New Businesses - International Institute Of Business Analysis
what startups can teach us
about product spinouts
3 Principles that founders apply
Different thinking hats for learning
How to decide what to learn.
the birthday paradox
Evolving Products Into New Businesses - International Institute Of Business Analysis
Title TextFIT or SPEC?
Options
Detail
Evolving Products Into New Businesses - International Institute Of Business Analysis
you don’t know which
pieces will be the right
combo. yet.
DISCOVER VALIDATE
A STARTUP RIDDLE
A customer wakes up, logs into a new
product which they’ve been trying for 2
weeks… and they love it!
The trial is over. They don’t buy. 
Why?
LEARN CONFIRM
COLLECT ANALYSE
OBSERVE EXPERIMENT
DISCOVER VALIDATE
LEARN CONFIRM
INFO
COST
ACTIONABLE INFO
COST
ACTIONABLE INFO
AFFORDABLE LOSS
Look in Affordable Loss by
searching for Effectuation
Evolving Products Into New Businesses - International Institute Of Business Analysis
learning
Evolving Products Into New Businesses - International Institute Of Business Analysis
Evolving Products Into New Businesses - International Institute Of Business Analysis
Evolving Products Into New Businesses - International Institute Of Business Analysis
BUILD
LEARN
MEASURE
Learning Loop 
- Eric Ries
Evolving Products Into New Businesses - International Institute Of Business Analysis
How do we start?
We’re building a
community of street
artists and connecting
them to brands.
@robfitz
What do we build?
We want to
make a better
television.
How do we compete?
We’re building a word
processor and don’t
want to get squashed
by MS Word.
Do you commit the cash?
You have a crazy
product idea but the
manufacturing
setup is expensive.
Paul Graham
Launch fast and iterate.
You haven’t really
started working on it
till you’ve launched.
Evolving Products Into New Businesses - International Institute Of Business Analysis
Don’t try to figure
out whether the idea
is “good” or “bad”.
That’s impossible...
Roger Martin (paraphrased)
Instead, ask what
would have to be
true in order for it to
be a huge success.
Roger Martin (paraphrased)
Where do we start?
We want to launch a
support programme for
the developing world but
we don’t have any
contacts.
Evolving Products Into New Businesses - International Institute Of Business Analysis
Evolving Products Into New Businesses - International Institute Of Business Analysis
How do you fund it?
You want to use tech to
modernize a stagnant
service industry, but
have no runway.
Evolving Products Into New Businesses - International Institute Of Business Analysis
How do we get critical mass?
We want to grow a
marketplace, but we
have no inventory,
and no team.
Evolving Products Into New Businesses - International Institute Of Business Analysis
How do we start
a better airline?
!
(with no support or money)
Let’s think bigger.
Evolving Products Into New Businesses - International Institute Of Business Analysis
Evolving Products Into New Businesses - International Institute Of Business Analysis
Evolving Products Into New Businesses - International Institute Of Business Analysis
Evolving Products Into New Businesses - International Institute Of Business Analysis
testing the
useful thing.
SPOT GAPS
UNDERSTAND OPTIONS
BALANCE FOCUS & OPPORTUNITY
SPOT GAPS
UNDERSTAND OPTIONS
BALANCE FOCUS & OPPORTUNITY
CUSTOMERS
REVENUE MODELS
VALUE PROPOSITIONS
AWARENESS TRIGGER
RELATIONSHIP
ACTION TRIGGER
CUSTOMERS REVENUE VALUE
AWARENESS RELATIONSHIP ACTION
Evolving Products Into New Businesses - International Institute Of Business Analysis
LONDONERS
LONDON RETAILERS
CHARGE FOR THE GIFT
REAL GIFT,
INSTANTLY REDEEMABLE
GETTING A GIFT
MOBILE
RUNNING LATE,
MISSED BIRTHDAYS,
GOOD NEWS
LET’s Go.
We’re setting ourselves up to find product/market fit.
We’re making ourselves aware of opportunities and
options.
Who will our next 10 customers be?
What goals do they have?
What are they trying to do?
What needs do your customers have?
How can we help?
To multiply my customer base by 10, I can attract
them through _____________ .
What are the different ways we can make money?
CONGRUENCY
They need to make sense together.
do companies
need personal contact?
IS THE BUYING DECISION
TOO COMPLICATED?
do pop-ups work
for email products?
How are customers used to paying for what they
buy now?
When customers have this problem, or are
tackling this task, where do they seek help and
advice?
Which customers have different expectations
about service levels or relationship?
Are there customers at the low-end who would
pay less for lower performance?
How could we increase switching costs?
THE BIGGEST RISK FALLACY
Evolving Products Into New Businesses - International Institute Of Business Analysis
Will people think of sending a gift from their
phone when there’s a gift-giving opportunity?
Who will trust GiftCannon?
Will people receive a gift over their mobile?
THE FASTEST LEARNING
!
!
!
THE BIGGEST RISK
or
Will people receive a gift over their text
message?
Will people receive a gift over their Facebook?
Send a gift with a link over email or Facebook.
Will recipients redeem their gift?
Will shops work with us to redeem gifts?
Will gift recipients stick around and start
sending gifts themselves?
ACTIONABLE INFO
AFFORDABLE LOSS
it’s tough to get critical mass in london.
so jordan moved the business to oxford to learn.
But will this work beyond students?
invest in info.
decide fast.
adapt frequently.
Founder
Centric
HERE TO HELP!
Salim Virani
salim@foundercentric.com
@SaintSal
!

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