Going into the Lean Startup Machine, I didn’t know really what to expect. My knowledge of lean principles was limited to a handful of Lean Startup Circle Meetups (highly recommended) as well as various blog posts, articles, and videos; I hadn’t worked on a startup before, let alone ‘run’ a ‘business’. And I certainly had never really engaged in customer development. That being said, LSM ended up being one of the most thoroughly exciting, productive, and exhausting weekends I can remember.
Though I came into the weekend with a team and idea, that shouldn’t discourage anyone from attending—most teams formed on Friday night (with some of the best ideas, in my opinion, being thought up right on the spot!). Yet, despite having had some ideas already in the works, the general where-do-I-even-begin sentiment aptly characterizes the start of the weekend. Luckily, LSM’s methodology was there to simplify, quantify, and clarify the entire process of going from idea to business in just a few days. Broadly speaking, the process works as follows: outline your assumptions, test the riskiest ones, pivot accordingly, and iterate. After a few cycles of this, you’re left with a clearer vision of the problem you’re trying to solve, the market you’re serving, and the product that you hope to build. And so we began with our assumptions…
The idea my team worked on was for a crowd sourced lending platform for local businesses (see more: www.clovest.com). In our case, the riskiest assumption to test was the need for financing. We got out of the building early on Saturday going to local businesses and doing some problem interviews. All these interviews followed roughly the same lines—“What sorts of financing issues do you encounter? What kinds of projects need financing? How are projects funded if you don’t get financing?”. Some businesses were more willing to talk than others, but through the process we learned some really valuable lessons. For example, our target market was not who we assumed it would be. Additionally, access to financing wasn’t as much of an issue as the high cost and hassle of obtaining it. After about five or six interviews, I finally understood the importance and value of a key lean strategy: the pivot.
Pivots, I had previously assumed were these large 180-degree shifts in the product or business. As we went through these interviews, however, I realized that we were constantly pivoting. After invalidating our initial assumptions of the target market and financing needs, we altered our approach for the rest of the weekend; the businesses we targeted, the questions we asked, the tone of our pitch— everything was slightly different. In doing so, we ended up with significantly improved results, connected better with customers, and even signed letters of intent. Through customer development, I discovered that a driving force of progress in a lean startup is, in fact, the pivot. Lean startups are powerful precisely because they are able to constantly evolve given the changing needs of customers and the market. And while we didn’t finish testing all of our assumptions, learning the nature and ubiquity of the pivot has really clarified our agenda for our next round of customer development: pivot early and pivot often.
I highly recommend LSM not only to those interested in pursuing their own startup ideas, but to anyone who wants a glimpse into the process of building a business. Reading about lean principles is one thing, but practicing customer development yourself is quite another. While we only went home with the “no yuppies” award (that’s another story), we did collect LOIs from three businesses in under 24 hours. If that doesn’t entice you, the two days of unlimited access to a set of seasoned mentors who provide invaluable advice and are genuinely dedicated to helping your team succeed, should. Not to mention, there are crash courses in all things metric, whether it’s how to leverage AdWords or create a launch page and convert users. All in all, it was probably the best spent weekend (time + money) I’ve had in quite a while. Looking forward to future lean events and what comes of all the impressive customer development work put in by all the LSM DC teams. Big thanks to all the organizers, mentors, and participants for making a truly memorable and enjoyable weekend.



