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Active: 663 users

Creating an eSports company w/Lean Startup methods

Blogs > moge
Post a Reply
1 2 Next All
moge
Profile Blog Joined January 2011
United States124 Posts
Last Edited: 2012-05-23 16:29:17
May 23 2012 16:13 GMT
#1


Last night I gave a presentation about how I created iHearteSports.com using the Lean Startup Methodology. I was only allocated 5 minutes so I had to talk fast!

Lean Startup methodology was created by a guy names Eric Reis. His theory builds upon the programming methodology of 'Agile'; Lean is to business what Agile is to programming.

Agile development is all about cycles, or iterations; make a small change, push that change to your site; make another small change, and on and on it goes. Do tiny things just do a LOT of them. Agile is basically chunking your work but each chunk should be, essentially, a finished product.

[image loading]

Lean Methodology

Lean methodology is this Agile system placed into a business framework. Traditionally, business have huge lead-in time before they launch or open for business. They have business plans, finacials, projections, marketing materials, press releases, and websites that have to be pixel perfect before they are opened to the public. Their needs to be alpha releases and beta testers and, oh, did I mention the NDA's you need to sign just to hear what my business does? Lean methodology puts all the traditional business crap right where it belongs; in the trash!

[image loading]

Lean is all about the MVP. What is the Minimum Viable Product that I can launch with? What is the absolute minimum I can do to 'go live' with my site? We don't do this because we are lazy, we do this because we want to get to the data as fast as possible.

Richard Feynman said that science relies on experimentation. If your hypothesis isn't supported by your experimentation then your hypotheses is wrong. Period. Full stop. Lean Methodology wants to get to that experimentation phase as soon as possible. Why spend 6 months building and nurturing a project based on the hypotheses that people will actually want/need/buy/use something just to find out after thousands of dollars and months of work that your theory was flawed? This is silly. Building an MVP product gets you to the data, fast! Be willing to fail fast because in business, like science, failing just means it's time for another hypotheses.

Build Measure Learn

iHearteSports started with the hypotheses that people wanted to buy eSports related products. To test that assumption I followed the simple cycle of Build, Measure, Lean. My MVP was 4 stickers. So I Built (made) 4 stickers. I then sold those stickers and Measured the success of those sales. Based on the data of sales I Learned that, yes, people want eSports related products. In just 5 weeks and a few hundred dollars I proved my original hypotheses enough to encourage me to continue developing new products and expanding beyond just selling stickers.

[image loading]

By using an MVP (stickers) and the Build, Measure, Lean cycle I saved myself a huge amount of time, energy and money.

In the video I go into more detail of our MVP and how we have expanded from 4 stickers to 40 and, soon, into a vast array of eSports related products all using the MVP and Build Measure Learn cycle.

Hope you dig it!


GG,

Jason
follow me @JasonTugman

****
gentle lover of esports - Product Manager for http://iHearteSports.com
Kukaracha
Profile Blog Joined February 2011
France1954 Posts
May 23 2012 16:28 GMT
#2
Haha, I believe that this was the methodology used in France by a certain Mr. Breton to save France Telecom. It also led to many employees diving down the depths of depression and some of them suiciding.

It could be unrelated, but it's the first thing that popped to my mind
Le long pour l'un pour l'autre est court (le mot-à-mot du mot "amour").
mOnion
Profile Blog Joined August 2009
United States5657 Posts
Last Edited: 2012-05-23 16:37:08
May 23 2012 16:35 GMT
#3
this is pretty interesting stuff, unfortunately I can see this type of business startup working much better in programming than it would in a typical entrepreneurial venture since there are generally much larger capital investments. that's why the large startup times are needed, because you can't just invest millions of dollars on an idea without crunching a shitton of number. so basically the 1k you set aside for buying stickers is less of a real business, more of a hobby that makes money, for now!

that being said, very excited with what you're doing, hope it works out!

edit: you might actually want to hybrid, and do the small startup thing for now, and later when you want to expand and do mice, keyboards, w/e, then go to a lender and say "hey look at this thing, its already working, gimme some money and we'll make it very work". just a thought. at that point a legitimate business plan would be necessary though.
☆★☆ 7486!!! Join the Ban mOnion Anti-Trolling Initiative! - Caller | "on a scale of machine to 10, how bad is that Zerg?" - LZgamer | you are the new tl.net bonjwa monion, congrats - Rekrul | "Cheeseburgers dynamite lilacs" - Chill
Torte de Lini
Profile Blog Joined September 2010
Germany38463 Posts
May 23 2012 16:49 GMT
#4
Awesome stuff :B
https://twitter.com/#!/TorteDeLini (@TorteDeLini)
OrD_SC2
Profile Joined February 2012
United States247 Posts
May 23 2012 16:53 GMT
#5
Nice post/presentation. How do you feel about designing and producing promo type products for (small/online) SC2 tournaments?
Baldie disapproved of my last status, TT
Dahkar
Profile Joined May 2011
United States13 Posts
May 23 2012 17:06 GMT
#6
Love it. Especially coming from a start up background I've seen this in action day in and day out. This video feels necessary!
cmen15
Profile Blog Joined December 2010
United States1519 Posts
May 23 2012 17:34 GMT
#7
I really love when people bring up macro or micro in a business conversation, I just cant stop myself from laughing. Very nice write up sir!
Greed leads to just about all losses.
TheRealNanMan
Profile Blog Joined November 2010
United States1471 Posts
May 23 2012 18:07 GMT
#8
Awesome post! I really enjoy reading how you used and continue to use these concepts!
Sc2 Caster | Host of Sc2 Up & Coming | The Godfather of Team LXG | Sc2 Historian | Youtube.com/NanMan | Twitch.tv/TheRealNanMan | Twitter.com/TheRealNanMan |
felisconcolori
Profile Blog Joined October 2011
United States6168 Posts
May 23 2012 19:57 GMT
#9
Would this be in any way related to Lean Six Sigma?

Just wondering. It seems like a pretty basic, common sense way to start a business without a lot of capital - assuming one doesn't overemphasize any part of the cycle. For example, don't think so much that you can't actually develop your MVP. Don't measure so much that the avalanche of data prevents you from learning the important parts. And, of course, don't try to build more than you sustain too quickly.

I am familiar with government operations, which very quickly can get stuck measuring everything to death, continuously trying for perfection on everything the first time every time and doing everything at the same time, and ballooning out of all proportion to the actual need.
Yes, I email sponsors... to thank them. Don't post drunk, kids. My king, what has become of you?
moge
Profile Blog Joined January 2011
United States124 Posts
May 23 2012 21:02 GMT
#10
@OrD_SC2 we don't really do event specific stuff right now but PM me with what you are doing and I'll see if we can't help you out somehow.

@Dahkar That video is awesome!

@felisconcolori yep, exactly. Sigma Six, as you know, is a thing unto itself. Lean Sigma is based on the ideas of Lean Methodology. Totally agree about the avalanche. One bit I left out is that as you build, and as you measure you have clear goals of what you are going to build and what you are going to measure. Otherwise, yes, you end up with a government program

The ideas of Lean have been around for a long time but Eric was just the guy who formalized a lot of the thinking into a book and has really championed the ideas with the startup community -- which is a prime candidate for Lean as we often have little to no money as we bootstrap pre-investors.
gentle lover of esports - Product Manager for http://iHearteSports.com
Mawi
Profile Joined August 2010
Sweden4365 Posts
May 23 2012 21:50 GMT
#11
allways love your videos and that micro sticker is seriously siiiiick, amazing writeup!
Forever Mirin Zyzz Son of Zeus Brother of Hercules Father of the Aesthetics
LuckyFool
Profile Blog Joined June 2007
United States9015 Posts
May 23 2012 23:50 GMT
#12
Jason you rock! Great talk/info.
Sumahi
Profile Blog Joined January 2012
Guam5609 Posts
May 24 2012 00:37 GMT
#13
Love the stickers!
Startale <3, ST_July <3, HongUn <3, Savior <3, Gretorp <3, Nada <3, Rainbow <3, Ret <3, Squirtle <3, Bomber <3
Marou
Profile Blog Joined April 2010
Germany1371 Posts
May 24 2012 01:39 GMT
#14
Nice presentation and solid advice ! The tungman always delivers.
twitter@RickyMarou
MightyAtom
Profile Blog Joined June 2004
Korea (South)1897 Posts
May 24 2012 02:30 GMT
#15
Very cool!
Administrator-I am the universe- Morihei Ueshiba
fabiano
Profile Blog Joined August 2009
Brazil4644 Posts
May 24 2012 03:34 GMT
#16
Really nice presentation man, seriously, that was really really good.

Congratulations, hope you succed even more
"When the geyser died, a probe came out" - SirJolt
HeavOnEarth
Profile Blog Joined March 2008
United States7087 Posts
Last Edited: 2012-05-24 05:15:55
May 24 2012 05:15 GMT
#17
if you're purely into just esports and such, the IPL event at las vegas viewers actually had more from League of Legends.
since you mentioned the 3million unique viewers i had to laugh a bit if u truly believe that is purely starcraft

otherwise congrats to putting in the effort with a simple idea and for starting so quickly, with very minimum on expenses as well. a site for 200$? Fucking steal lol

i dont know why you are going into keyboards and mic and such though. there are many companies already that do that, unless you'll just be working for them, in which case best of luck.

But id probably do something like.. tshirts. Like at MLG anahiem, make a t shirt for that event, or IPL 5 etc, since you already have teams that you're working with, i would rather have a cheap tshirt .. over a sticker. (just saying)
cheap is important because barely anyone is gonna spend over 20$ on a tshirt, even if its one they really like.

"come korea next time... FXO house... 10 korean, 10 korean"
Jinsho
Profile Joined March 2011
United Kingdom3101 Posts
May 24 2012 08:58 GMT
#18
The buzzwords are strong with this one.
moge
Profile Blog Joined January 2011
United States124 Posts
May 24 2012 11:55 GMT
#19
@HeavOnEarth Yes, the numbers were LoL and SC2 however it was not worth explaining to a crowd that really has no clue - or care - about the RTS/Moba scene.

We will be working with existing manufacturers

gentle lover of esports - Product Manager for http://iHearteSports.com
haduken
Profile Blog Joined April 2003
Australia8267 Posts
May 24 2012 12:45 GMT
#20
Hey OP I want to buy your stickers. Any car stickers?

URL thanks.
Rillanon.au
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