CIPUTRAWAY TUMBLR

Customer Development Explained by none other than the Jedi master himself, Steve Blank. :)

Personal Notes:

» Types of Startups:

Lifestyle Startup

Small business startup (self employed, not scalable)

Scalable startups (Billion$ vision, attracts VCs, [Build]->[Search]->[Execute])

Buyable Startups (intention is selling to another company)

Social Entrepreneurship

» Start Up definition according to Steve Blank: “A startup is a temporary organization used to search for repeatable and scalable business model"

» Large Company Innovation (happens around the core business with proven business model and existing customer base)

» Disruptive Innovation @ Large Companies: by partnering/acquiring/building. [New Division]->[Transition]->[Large Company]->[New Division] (loop)

» Each require different skills.

» Startups aren’t small companies

» 150 employees, it becomes a company.

» Only thing a startup need to worry about: 1. Burning/month, 2. When will team run out of money

» Metrics:

Customer Acquisition Cost

Viral Co-efficient

Avg selling price

Monthly burn rate etc

» Sales:

Selling to early adopters

Pricing

[couldn’t see]

One-off (unique)

Done by founders

» Product Development

Hypothesis development

[will add remaining after checking out the slides from slide share]

» Engineering

Agile Development

Continuous Deployment

Continuous Learning

Minimum feature set

[…]

» Startup Plans

Unknown customer need, to be identified

Unknown feature set

Unknown business model

Model found by iteration

» “No Business Plan survive the first contact with customers"

» “Search for a Business Model"

» Business Model has 9 building blocks:

Customer Segment

Value Proposition

Channels (sales)

Customer Relationship

Revenue Streams (for multi-sided market, extra investigation needed)

Key Resources

Key Activities

Key Partners

Cost structure

» Business Model Canvas by Oswald

» Customer Development: The founder gets out of the building and search for a Business model.

» Customer Development Process Steps:

Customer Discovery (CD)

Customer Validation (CV)

Customer Creation (CC)

Company Building (CB)

» [CD] (<—Pivot)—> [CV] —> [CC] —> [CB]

» Btw steps 1 & 2: Develop only the smallest set that gives you the most orders, learning, feedback, failures etc.

» Pivot Definition: When you change one or more components in your Business Model Canvas, then you have pivoted.

» Pivot Cycle Time matters.

» [BD Canvas] —> [Hypotheses/Guess] —> [Test Problem] —> [Test Solution] —> [Pivot]   } => Customer Development

» Customer Development of 2nd Decade => All products fit in the Product (Web x Virtual) x Channel (Web x Virtual) 4x4 matrix