Running Lean: Iterate from Plan A to a Plan That Works

Introduction
	A Tale of Two Entrepreneurs
	A Build-First or Investor-First Approach is Backwards
		1 year ago…
		Off to the races…
		6 months later…
		Catch-22
	A Traction-first Approach is the New Way Forward
	What Determines Success Isn’t Differing Skill Sets But Differing Mindsets
		The stakes are much higher this time
		Speed of learning is the new unfair advantage.
		Succeeding in the new world requires new mindsets
	You Can’t Afford to Wait For An Idea Whose Time Has Come
		Steve learns about Minimum Viable Products
	Don’t Start With an MVP
	There is a Systematic Approach to Entrepreneurship
	About Me
	How This Book is Organized?
		PART 1: MODEL
		Part 2: PRIORITIZE
		Part 3: TEST
	Is This Book For You?
	Practice Trumps Theory
I. Model
1. Deconstruct Your Idea into a Business Model
	Sketching Your First Lean Canvas
		Sketch a canvas in one sitting.
		Avoid group think.
		Know that it’s okay to leave boxes blank
		Follow the 1-page rule
		Think in the present
		Remember there is no right order for sketching a Lean Canvas
	Customer Segments
		Distinguish between customers and users.
		Model multiple perspectives
		Home in on early adopters
	Problem
		List the top one to three problems.
		List existing alternatives.
		Steve Tackles the Customer Segment/ Problem Quadrant
	Unique Value Proposition
		Connect to your customer’s #1 problem.
		Target early adopters.
		Focus on outcomes.
		Keep it short.
		Answer: what, who, and why.
		Create a high-concept pitch.
		Steve crafts his UVP
	Solution
		Steve defines a Solution
	Channels
		Steve outlines some possible paths to customers
	Revenue Streams and Cost Structure
		Revenue Streams
		Cost structure
		Steve thinks through his cost structure and revenue streams
	Key Metrics
		Happy customers get you paid.
		Steve aligns on his key metrics
	Unfair Advantage
		What do you do if you don’t have an unfair advantage on day one?
		Steve ponders his unfair advantage story
	Refine Your Lean Canvas
		So how do you avoid the Goldilocks problem?
		How do you know when to split your Lean Canvas?
		Steve Splits His Big Idea Canvas into Specific Variants
	Now It’s Your Turn
2. Stress Test Your Business Model
	Stress Testing Desirability
		The problem with problems
		The Innovator’s Gift
		Steve Realizes He Has a Hammer Problem
		Run the Innovator’s Gift Test on Your Idea
	Stress Testing Viability
		Up for some Excel magic?
		What is Traction?
	Don’t create a financial forecast. Start with a Fermi Estimate instead.
		1. Set a Minimum Success Criteria Constraint
		2. Test Your Business Model Against Your Minimum Success Criteria Constraint
		3. Adjust Your Business Model
		Isn’t this just funny math?
		Run the Back-of-the-envelope Test on Your Idea
	Stress Testing Feasibility
3. Pitch Your Business Model
	The Different Worldviews of an Idea
		The Story We Tell Ourselves
		The Investor Story
		The Customer Story
		The Advisor Story
		The Competitor Story
	Start With An Elevator Pitch
		An elevator pitch is NOT about your solution
		An elevator pitch is the beginning of a good story
		It’s time to craft your elevator pitch
		Outline Your Origin Story
		Craft a 5-minute Business Model Story Pitch
		Get Feedback on Your Business Model Story Pitch
	Steve Reviews His Business Model Story Pitch With Mary