Dr. Sean Wise, BA LLB MBA PhD

About me

About me Founded my first startup at 13 Been in venture capital business for 18 years Heard more than 20,000 startup pitches Spent 5 seasons on DRAGONS’ DEN Have invested in 23 startups over the last 20 months 2014 Startup Mentor of the Year

Today’s Agenda Introduction to the course Starting Startups The Lean Startup The 6 Key Questions / Themes The 7 Habits of highly successful entrepreneurs Finding your Hedgehog Picking a Problem to Solve Building Extraordinary Founder Teams

INTRODUCTION

In this module you will learn: Introduction to the course Why start a startup What is a: Startup? Entrepreneur? Opportunity? The Lean Startup Key Questions / Themes

Core Curriculum Module 0: Getting Started Module 1: Ideation & Opportunity Evaluation Module 3: Finding your UVP Module 4: Preselling Module 5: Finding your Business Model Module 6: Designing the MVP Module 7: Scaling and Sustaining the Business Module 8: Raising Seed Money

Why Start a Startup? I can decide what the work is like. What I get to do. And that's the mecca for me. I want to avoid the daily grind that comes along with a career that isn't self-sustaining. I want to be able to call my own shots, be in charge of my destiny, and have the ability to set my own life. I want to fix a problem, change the world, make life better. I want my actions to have a direct impact on the outcome of the business. I want job security, I’m driven by the sense of security that comes along with being in full control of their work. I have to escape the Dysfunctional Workplaces. I want Unlimited earning possibilities. I want to work on something that I am passionate about.

Why Start a Startup? (now) You Have The Power To Create Something From Nothing Cloud Computing And Web Apps Make It Cheap To Start A World Of Knowledge Is Available There Are More Customer Acquisition Channels Than Ever Before The Capital To Grow Is Widely Available If You Need It Finding Out Whether You Are Right Takes Far Less Risk A Traditional "Job" Isn't Much More Secure In The Long Run What took $5,000,000 to launch in 1995, not costs less than $25,000 to launch today

Starting Startups

Introduction In 100 days, if you follow this approach I’m teaching you, YOU will have a REVENUE generating Startup

100 Days? It is possible to get to revenue in 100 days, but keep in mind: All on you, not on the system Days are 10 hours (so 1000 hours in total must be invested) Revenue will be nominal and serve as proof of concept Days don’t have to be consecutive, but there must be 100, 10 hour days This requires you to nail it (e.g. Product, Market, etc.) on the first try

What’s a Startup? A startup is an organization formed to search for a repeatable and scalable business model. A startup is NOT a small version of a big company The goal of your early business model can be revenue, or profits, or users, or click-throughs – whatever you and your investors have agreed upon. Customer and Agile Development is the way for startups to quickly iterate and test their hypotheses about their business model Most startups change their business model multiple times. This is often called: Pivoting

When is a Venture a Startup?

Product Market Fit Scale now Startup Lifecycle Product Market Fit Scale now (LTV > COCA) Problem Solution Fit

What’s an Entrepreneur? Schumpeter An entrepreneur is the person who destroys the existing economic order by introducing new products and services, by introducing new methods of production, by creating new forms of organization, or by exploiting new raw materials. Creative Destruction. Simpler An entrepreneur is the person who perceives an opportunity and creates an organization to pursue it.

Entrepreneurial Traits Internal Locus of Control High Adversity Quotient Understands failure is part of the game Tolerance of ambiguity Actions lead to creative destruction Found 10x Solutions Focused on their Hedgehog Post Facto Success / Had huge $$$$ exit

Entrepreneurial DNA

What’s an Opporutnity? opportunity exists when customers struggle to get a job done. Indeed, addressing those unmet needs is the key to success.  Unmet market need Focus on customers needs Explore with customers: What is the biggest challenge you are facing in your business? Why is it important that you find a solution to this challenge now? How hard have you worked to try to solve this challenge in the past? What about this challenge makes it so hard to solve or answer? How hard has it been to find an answer to your challenge?

Opporutnities are Subjective Not all opportunities are suited for all founders Not all opportunities are worth pursuing Not all opportunities are startup worth building

The Opportunity Focus Obesssed 10X

9 elements of a Good Lean Startup Opportunity Enjoyable daily tasks Product / founder fit Can become a scalable business model Can operate profitably without the founder Can become an asset you can sell Large market potential They tap into pain or pleasure differentiators Unique lead generation advantage Ability to launch quickly

Before you quit your dayjob

The Changing Process 20th Century 21st Century Build in Secret Go to customers early and often Only focus group in Secret Share, share, share Only have 1 chance to make a first impression of customers Name it BETA and let customers shape it Engineering Driven Customer Driven Business Plans Lean Canvas

The Lean Startup Ready Aim Fire Ready Fire Aim 20th Century vs 21st Century Customer Development Lean Startup Method Business Plans vs. Business Model Canvas The Business Model Canvas vs the Lean Canvas Ready Fire Aim

Customer Development Methodology

Lean Startup Methodology

Lean Startup Methodology

Lean Startup Stages

The 6 Key Questions Who is your Customer? What can you do for your Customer? How does a Customer acquire your solution? How do you make money off your solution? How do you design and build your product? How do you scale the venture?

The Business Model Canvas

The Lean Canvas

Hypothesis Driven Entrepreneurship

In this module we learned about: Introduction to the course Why now is great time to start a startup What is a: Startup? Entrepreneur? Opportunity? The Lean Startup Key Questions / Themes

End of module 1

FOUNDERS & FOUNDING TEAMS

In this module you will learn: The habits of highly successful entrepreneurs How to find your Hedgehog How to find a problem worth solving That starting a startup is a team sport Finding Co Founders The components of startup teams About the Talent Triangle

The 7 Habits of highly successful entrepreneurs They set explicit goals quarterly and milestones according to the "80-20 Rule“, visualize daily, and track such with KPIs They Share Often They Fail Faster They know when to say "no“ They Turn Obstacles Into Assets They put their Customers First and use data based decision making They are focused on their Hedgehog A habit is a choice repeated for more than 21 days.

Finding your Hedgehog

THE HEDGEHOG CONCEPT

The Fox and the Hedgehog "a fox knows many things, but a hedgehog one important thing“ an ancient fable, with both Eastern and Western analogues involving different animals, that addresses the difference between resourceful expediency and a master stratagem In the basic story a hedgehog and a fox discuss how many tricks and dodges they have. The fox boasts that he has many; the hedgehog confesses to having only one. When hunters arrive with their dogs, the hedgehog balls up and the dogs ignore him, but the fox is chased and eventually caught by the hounds.  Hedgehogs view the world through the lens of a single defining idea  Foxes draw on a wide variety of experiences and for whom the world cannot be boiled down to a single idea

The Fox and the Hedgehog Are you a fox or a hedgehog? The fox knows many things but the hedgehog knows one big thing. Can you take a complex world and simplify it. The three circles  What are you best at?  What can make you money?  What are you passionate about

3 Questions to Find your Hedgehog THE HEDGEHOG CONCEPT

Picking your Problem to Solve Access to Customers 10X advantage Domain Knowledge Your Opportunity

FOUNDING TEAMS

Building Extraordinary Founder Teams Passion 10x Adv Access To users

7 Reasons to Hire a Cofounder 7 advantages of a team 7 Reasons to Hire a Cofounder Feedback Increased skill set Moral support Capacity innovation Extended network Higher social level of support

What is a well rounded Management Team?

In this module you learned: The habits of highly successful entrepreneurs How to find your Hedgehog How to find a problem worth solving That starting a startup is a team sport Finding Co Founders The components of startup teams About the Talent Triangle

End of module 2