State of the Lean Startup Circle, First Decisions

Since taking over operations of Lean Startup Circle SF and the global digital assets, we’ve been trying to figure out what to do with them.

There’s a lot that could be done, a lot that should be done, and a lot that I don’t really want to do. Community building is hard work and not for the faint of heart, or those with limited free time.

So here are the first four decisions we’ve made to help us focus:

  1. Lean Startup Circle is a startup and as such, we’ll run it as a lean startup.
  2. Lean Startup Circle management will be 100% transparent.
  3. Lean Startup Circle will charge for local events (we’re in charge of the SF chapter) but not the web assets.
  4. Decisions on Lean Startup Circle digital assets or other global issues will be deferred until later.

How can a Community be a Startup?

By saying Lean Startup Circle (LSC) is a startup, that’s not to make it a business (in the bad sense) or forget that it’s a community of people. We will treat it as a startup in order to insist on providing a Unique Value Proposition to our Community.

We will treat LSC as a startup in order to have actionable metrics regarding value creation. These must include Acquisition, Activation, Retention and so forth. We’ll treat LSC as a lean startup and try to make steady progress to improve the value by iterating steadily.

We’ll treat LSC as a startup so that we focus on the User Experience of our community members and how we can improve it.

How will decisions be made?

We are going to blog here about every big decision we make and the reasons for it. We’re also going to make any metrics we produce freely available (hopefully via a digital dashboard) so that everyone can understand how the community is developing and how the metrics effect decisions.

This is important because although LSC isn’t strictly non-profit, it is a community organization and making money has never been an organizational driver. So the community should be able to easily understand what’s going on and have input on the process.

So if taking sponsorship money or charging for events doesn’t provide value to the community, then the community has a right to know about it and be heard.

If LSC is a startup, our business model needs to be closely aligned with the community needs.

Otherwise the vision fails and we should shut it down.

Should We Charge for Local Community Event?

There are a few decision factors here. Frist, the obvious financials.

LSC has always charged $25 for local speaker events, with the proceeds of ~$1000 going to the organizers. While nobody is going to get rich off of throwing events, it’s nice to cover costs and we want to be able to invest the time and resources to make it a great event, rather than put in the minimal amount of effort.

Second, and more importantly, money is a proxy for value created.

If the events we throw aren’t worth paying for, they’re probably not worth throwing. If an event is like a feature of Lean Startup Circle, then if no one is willing to pay for the feature, we shouldn’t build it.

We should test out each speaker series, each new format or workshop, and quickly determine if the community finds it valuable. If not, we can pivot or persevere.

Perhaps a new feature, perhaps a new target customer!

What Should We Do with the Digital Assets?

As part of the LSC package we’ve inherited from Rich are a number of loosely coupled digital assets used worldwide. There are also a huge number of meetup groups with little to no connection between them and no global organization.

While it would be great to figure out a way to tie everything together, it makes no sense to do that until we know how to run the local organization efficiently. So for now, we’ll make no attempt to tie groups together, get sponsorship for the global assets, or otherwise make any big moves that would effect everyone.

The only thing I have personally started doing is simply tying together a number of the digital assets in terms of infrastructure. For example, the RSS from the Google Group is tied into @LeanStartup which is tied into the Facebook page.

We will defer decisions until they must be taken so as to have the most information.

Any questions? Send ‘em over!

 State of the Lean Startup Circle, First Decisions

Tristan Kromer

Tristan Kromer pokes, prods, and questions startups. He's spent 10 years in the music industry, worked 5 years in IT security, lived in 5 different countries, studied philosophy and business (separately), and generally made a nuisance of himself for the past 3 years in Silicon Valley as a lean startup and customer development advocate.

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6 thoughts on “State of the Lean Startup Circle, First Decisions

  1. Thanks, Tristan for raising and addressing these important issues. I look forward to learning about your metrics, as I’m still working on ours for the Baltimore LS group. “Going where no Lean has gone before” is our motto, and I’ve been reaching out to sectors not traditionally associated with LS. We’re offering Meetup themes to engage in conversation and invite to attend; ex: Lean Startup for the non-startup, Lean healthcare/science. Btw, love the dashboard idea. Sarge @bmorelean

  2. It is great you are blogging about your process. I think it is completely fair for organizers to be compensated for making events happen if it helps allocate time and energy to do so, but I challenge that “money is a proxy for value” applies in this context. To elaborate on my tweeted feedback… I think the events are worth more than $25, but agree that as a startup founder that’s the edge of what I’ll pay for a casual event. At RailsBridge, we make the events free, because we think they are priceless and targeted at an audience that may not value what we’re teaching until after they have learned it. We find it generates enthusiastic volunteers and have effectively created a “pay it forward” model. We also find that teaching helps people learn, so it furthers our mission.

    From the google group, it seems your mission is: “Lean Startup Circle is dedicated to applying lean startup thinking and building lean startup leadership.” How do these decisions lead you to your goal? What are your actionable metrics?

    Also, who is “we” when you talk about the management team?

    Thanks,
    Sarah Allen
    @ultrasaurus
    http://ultrasaurus.com/about

    • Team: http://leanstartupcircle.com/team

      These decisions are really pragmatic in nature and set the scope of what is feasible to work on, not the vision in and of itself.

      The only actionable metric I’m interested in right now is the retention rate on a core group of volunteers and team members. It is a community and lives or dies with the people involved. Not how many people click on a signup button.

      Related: I am setting up cross domain google analytics but I don’t expect to focus on those metrics right now. It’s just to collect a baseline of data and try to determine if we can cut or should improve any features (such as the wiki). This should help us determine whether or not people are actually using it.

  3. Tristan, here are the actionable metrics we’ve set up for the Baltimore LS group (Jun 2012 – Jun 2013):

    - 11 Meetups (Dec off)
    - 6 Workshops (separate, skill-building exercises)
    - 4 Venues (promote 4 diff’t venues around town)
    - Recruit speakers from 12 industries (use LinkedIn industry on profile)
    - Recruit members from 12 industries (same as above)

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