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Active: 34602 users

Creating an eSports company w/Lean Startup methods

Blogs > moge
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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
StarStruck
Profile Blog Joined April 2010
25339 Posts
May 24 2012 12:49 GMT
#21
Businesss savvy.

I checked your website several months and I remember seeing the player cards.

Now we're getting mice and keyboards?

Keep it going Jason.
Zorkmid
Profile Joined November 2008
4410 Posts
May 24 2012 12:55 GMT
#22
I'm a Six Sigma bb. Was interesting to hear about Lean in the context of a startup. I've mostly used it to help re-design existing processes.
Athos
Profile Blog Joined February 2008
United States2484 Posts
May 24 2012 14:33 GMT
#23
Cool. Scrum and Agile development has really helped me and my friends stay organized when we're working together on programming projects.
MysteryMeat1
Profile Blog Joined June 2011
United States3291 Posts
May 24 2012 17:18 GMT
#24
how much have you grossed while following your business model.

sounds really cool.
"Cause ya know, Style before victory." -The greatest mafia player alive
Chargelot
Profile Blog Joined December 2010
2275 Posts
May 24 2012 17:52 GMT
#25
This sounds like EA's game production method. Except, you know, they're doing it because they're lazy.
if (post == "stupid") { document.getElementById('post').style.display = 'none'; }
Vivax
Profile Blog Joined April 2011
21959 Posts
May 24 2012 18:49 GMT
#26
Little by little.
Sure it's smart cause it limits the investments and risks of every step and lets you evaluate the outcome really fast.
You're obviously being successful with it and congratulations!
It looks like it's a very effective way to create a startup and i will definitely learn from what you've written here, i've never known about such a systematic method.

Not very effective for big companies cause of the high expectations though.
moge
Profile Blog Joined January 2011
United States124 Posts
May 24 2012 20:20 GMT
#27
On May 24 2012 21:45 haduken wrote:
Hey OP I want to buy your stickers. Any car stickers?

URL thanks.


I have the Good Game sticker on my car
Our site is iHearteSports com. I left it out because I didn't want to be spammy.
gentle lover of esports - Product Manager for http://iHearteSports.com
Ares[Effort] *
Profile Blog Joined February 2009
DEMACIA6550 Posts
May 24 2012 22:00 GMT
#28
Interesting stuff, thanks for posting
Moderatorgold coin
shindigs
Profile Blog Joined May 2009
United States4795 Posts
May 25 2012 07:28 GMT
#29
excited to see where your startup goes. i used to think the stickers were a bit silly way back when, but looks like you had an amazing long term plan and now I'm a fan!
Photographer@shindags || twitch.tv/shindigs
BlindKill
Profile Blog Joined July 2011
Australia1508 Posts
May 25 2012 09:48 GMT
#30
Is this a form of lean accounting? I've read about this method for small businesses but never really looked into it.
“Life is a grindstone, and whether it grinds a man down or polishes him up depends on the stuff he's made of.”
Dahkar
Profile Joined May 2011
United States13 Posts
May 25 2012 13:55 GMT
#31
On May 25 2012 05:20 moge wrote:
Show nested quote +
On May 24 2012 21:45 haduken wrote:
Hey OP I want to buy your stickers. Any car stickers?

URL thanks.


I have the Good Game sticker on my car
Our site is iHearteSports com. I left it out because I didn't want to be spammy.


Are you going to be able to make it to the Red bull Tournament in Austin this weekend?
moge
Profile Blog Joined January 2011
United States124 Posts
May 25 2012 15:52 GMT
#32
On May 25 2012 22:55 Dahkar wrote:
Show nested quote +
On May 25 2012 05:20 moge wrote:
On May 24 2012 21:45 haduken wrote:
Hey OP I want to buy your stickers. Any car stickers?

URL thanks.


I have the Good Game sticker on my car
Our site is iHearteSports com. I left it out because I didn't want to be spammy.


Are you going to be able to make it to the Red bull Tournament in Austin this weekend?


No, but you can buy online at our site.
gentle lover of esports - Product Manager for http://iHearteSports.com
MrShankly
Profile Blog Joined October 2009
United Kingdom371 Posts
May 25 2012 19:51 GMT
#33
Haha I just graduated as a game programmer, and I was thinking of making an iOS application/game but probably won't cause i dont have good application ideas, this was a pretty interesting read and would have been useful if i decided to do it!!
DONATE SC2 BETA KEY TO ME PLEASE
Lonyo
Profile Blog Joined December 2009
United Kingdom3884 Posts
May 26 2012 12:15 GMT
#34
On May 24 2012 01:35 mOnion wrote:
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.


Isn't that how a lot of businesses start out? A hobby that gets developed into a business.
I think that's maybe the whole point of the OP. You want to start a business. Instead of trying to start a massive business in one go, start small and develop.

There will be some things which can't develop in that way, but many things which can.
HOLY CHECK!
CPTBadAss
Profile Blog Joined March 2011
United States594 Posts
May 28 2012 03:19 GMT
#35
On May 24 2012 21:45 haduken wrote:
Hey OP I want to buy your stickers. Any car stickers?

URL thanks.


I believe the website is http://iheartesports.com/

They're not bumper stick sized but I'm pretty sure they could go on your car no problem.
I'll keep on struggling, 'cause that's the measure of a man | "That was the plan: To give him some hope, and then crush him" -Stephano
Kashll
Profile Blog Joined May 2008
United States1117 Posts
May 28 2012 04:05 GMT
#36
Our company is agile and lean with a focus on the long tail. Ok, our company is actually a polecat I found in my backyard.
"After silence, that which comes nearest to expressing the inexpressible is music." - Aldous Huxley
iseefor
Profile Joined September 2010
United States162 Posts
May 28 2012 04:42 GMT
#37
man i just want to say you are the person i want to be when i get out of Business school.. would you have any tips to someone just starting out?

thanks for the amazing content as always
.CJ.herO lifer.
O.Golden_ne
Profile Joined August 2010
Australia204 Posts
May 28 2012 10:34 GMT
#38
can you do the trading cards for ROOT?
i will buy so many
also, i will be buying a few of the micro/macro stickers this pay. they are very cool!
Like a baneling in a mineral line
Not_Computer
Profile Blog Joined January 2007
Canada2277 Posts
May 29 2012 03:55 GMT
#39
Awesome, I need to learn more of this.
"Jaedong hyung better be ready. I'm going to order the most expensive dinner in Korea."
moge
Profile Blog Joined January 2011
United States124 Posts
May 29 2012 14:03 GMT
#40
On May 28 2012 19:34 O.Golden_ne wrote:
can you do the trading cards for ROOT?
i will buy so many
also, i will be buying a few of the micro/macro stickers this pay. they are very cool!


Already working on it
gentle lover of esports - Product Manager for http://iHearteSports.com
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