2010, Customer Development and Early Stage

Times Square Strategy Session – Web Startups and Customer Development

Steve Blank

NOVEMBER 16, 2009

I was in New York last week with my class at Columbia University and several events made me realize that the Customer Development model needs to better describe its fit with web-based businesses. And without revenue how do we know if we achieved product/market fit to exit Customer Validation?” It’s an impressive portfolio.

Customer Development

Customer Development Web Developer Customer

The Customer Development Manifesto: The Startup Death Spiral (part.

Steve Blank

SEPTEMBER 7, 2009

This post describes how following the traditional product development can lead to a “startup death spiral.&# In the next posts that follow, I’ll describe how this model’s failures led to the Customer Development Model – offering a new way to approach startup sales and marketing activities.

Customer Development

Customer Development Developer Customer Silicon Valley

Customer Development Fireside Chat

Steve Blank

JULY 7, 2009

luck… and as one of Steve Blank’s posts today mentioned, you can’t test hypotheses from within your building.

Customer Development

Customer Development Developer Silicon Valley Customer

Tune In, Turn On, Drop Out – The Startup Genome Project

Steve Blank

MAY 29, 2011

In April 2010 I received an email that said, “I’m an incoming Stanford student in the fall and working on a project that a number of people suggested I get in touch with you about.&#. Max and his partners interviewed and analyzed over 650 early-stage Internet startups. Ok, I get a lot of these. better user growth.

Technical Cofounder

Technical Cofounder Early Stage Startup Silicon Valley

Nokia as “He Who Must Not Be Named” and the Helsinki Spring

Steve Blank

OCTOBER 10, 2011

In 2010 it got worse with an Act in parliament about the Monitoring of Foreigners’ Corporate Acquisitions. You find early stage employees expecting to work normal hours, to get paid a regular salary, and not asking or expecting equity. Instead the business press dumped on the founders for “selling out.”

Finland

Finland Naming Russia Government

“Speed and Tempo” – Fearless Decision Making for Startups « Steve.

Steve Blank

APRIL 10, 2009

Customer Development ) to help you quickly recognize and reverse any incorrect decisions. Customer Development) to help you quickly recognize and reverse any incorrect decisions.&# Reply Why Startups are Agile and Opportunistic -- Pivoting the Business Model , on April 14, 2010 at 6:32 am Said: [.]

Silicon Valley

Silicon Valley RSS Startup Agile

Am I a Founder? The Adventure of a Lifetime. « Steve Blank

Steve Blank

JUNE 11, 2009

Yet for every founder there are 10-20 other employees who take the near-equivalent risks in joining an early-stage company. If you’re not a founder (by choice, timing or temperament,) you may be an early employee or a later stage startup employee. This means you still need to have a resilient personality, and be agile.

Cofounder

Cofounder Founder Silicon Valley Technical Cofounder

supermac War Story 1: Joining supermac

Steve Blank

MARCH 19, 2009

They had no model of who their own customers were and what it would take to make those customers bang down their doors to buy their products. Nothing I couldn’t fix. I took the job.

Silicon Valley

Silicon Valley Software Review Technical Review RSS

Customer Development Manifesto: The Path of Warriors and Winners.

Steve Blank

SEPTEMBER 17, 2009

This post describes a solution – the Customer Development Model. In future posts I’ll describe how Eric Ries and the Lean Startup concept provide the equivalent model for product development activities inside the building and neatly integrates customer and agile development.

Customer Development

Customer Development Developer Customer Silicon Valley

Raising Money Using Customer Development

Steve Blank

NOVEMBER 5, 2009

Unfortunately in early stage startups the drive for financing hijacks the corporate DNA and becomes the raison d’etre of the company. Unfortunately in early stage startups the drive for financing hijacks the corporate DNA and becomes the raison d’etre of the company. What are Early Stage VC’s Really Asking?

Customer Development

Customer Development Developer Customer Silicon Valley

Out of the Ashes - Something Isn't Quite Right

Steve Blank

FEBRUARY 23, 2009

I was between my 7th and 8th and final startup; licking my wounds from Rocket Science, the company I had cratered as my first and last attempt as a startup CEO. Yet when I talked to my venture capital friends, they said, “Well, that’s just how startups work. We’ve managed startups like this forever; there is no other way to manage them.”

Silicon Valley

Silicon Valley RSS Venture Capital Customer Development

Touching the Hot Stove – Experiential versus Theoretical Learning.

Steve Blank

AUGUST 13, 2009

Customer Development/Lean Startups In hindsight startups and the venture capital community left out the most important first step any startup ought to be doing – hypothesis testing in front of customers- from day one. It’s what my textbook on Customer Development describes. I was an idiot. Berkeley and at Stanford.

Silicon Valley

Silicon Valley RSS Technical Review Lean

Blowing up the Business Plan at U.C. Berkeley Haas Business School

Steve Blank

MARCH 3, 2015

Berkeley in 2010 to run the Lester Center for Entrepreneurship in the Haas School of Business we were teaching entrepreneurship the same way as when I was a student back in 1995. Over my career as a serial entrepreneur I observed that since the late 1990s, no early-stage Silicon Valley investor had used business plans to screen investments.

Business Plan

Business Plan Silicon Valley Saudi Arabia Lean

Vertical Markets 2: Customer/Market Risk versus Invention Risk.

Steve Blank

MAY 28, 2009

But then, because there might be entrenched competitors and your concept is radically new, you still need to invest in the customer development process to learn how to get design wins from companies who may be happy with their existing vendors. In contrast, customer acquisition, brand, reputation, etc.

Vertical

Vertical Silicon Valley Marketing Customer

Convergent Technologies: War Story 1 – Selling with Sports Scores.

Steve Blank

JUNE 25, 2009

The answer depends on your answer to two questions: which step in the Customer Development process are you on? Customer Development and Selling Strategy If you’ve just started your company you are in customer discovery. Hiring a VP of Sales in customer discovery typically sets a startup back.

Technology

Technology Silicon Valley Fractional VPE Part-Time VPE

Ardent 1: Supercomputers Get Personal

Steve Blank

OCTOBER 5, 2009

Reply Karma in the Lean Startup Era , on January 28, 2010 at 5:26 pm Said: [.] Not a trivial job considering our computer was one of the first parallel architectures, and our compiler required specific knowledge of our [.] The cheapest way to get promotion is getting colleagues to [.]

North Carolina

North Carolina Silicon Valley Fractional VPE Part-Time VPE

Create Structure out of the Gate and You’ll Thank Yourself Later

Feld Thoughts

NOVEMBER 18, 2013

His most recent company, Filtrbox, participated in the inaugural Techstars class (Techstars Boulder 2007) and was a win for all parties involved; Filtrbox was acquired in 2010 by Jive Software (NASDAQ: JIVE). Following is his advice to early stage entrepreneurs for creating structure in their company.

Burn Rate

Burn Rate Equity Software Review Early Stage

Building a new startup hub

Startup Lessons Learned

AUGUST 26, 2009

The companies I spoke to all agreed that the community there was extremely supportive, especially in the critical ulta-early-stage. Then, create an encouraging environment for early-stage companies. Provide early seed capital, and be the ones to make those introductions. And do your customer development.

San Francisco

San Francisco Silicon Valley Startup Continuous Deployment

How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

FEBRUARY 2, 2011

A lot of my time is spent helping early-stage companies get to proof points so that they can raise capital. They might have some seed money and are thinking or raising a Series A based on success of an early release (MVP). Bill Payne is an expert on how early-stage investors should look at valuation.

Valuation

Valuation Revenue Pre-Money Valuation Early Stage

Lessons Learned: Validated learning about customers

Startup Lessons Learned

APRIL 14, 2009

In an early-stage startup especially, revenue is not an important goal in and of itself. This may sound crazy, coming as it does from an advocate of c harging customers for your product from day one. Let’s start with a simple question: why do early-stage startups want revenue? But all things are never equal.

Customer

Customer San Francisco Lean Hockey Stick

Lessons Learned: The four kinds of work, and how to get them done.

Startup Lessons Learned

NOVEMBER 17, 2008

Lessons Learned by Eric Ries Monday, November 17, 2008 The four kinds of work, and how to get them done: part one Ive written before about some of the advantages startups have when they are very small, like the benefits of having a pathetically small number of customers. Tell your Startup Visa story Speaking 2010: Webstock, GDC, Web 2.0,

San Francisco

San Francisco Lean Continuous Deployment DC

Going to Trade Shows Like it Matters – Part 2

Steve Blank

MAY 22, 2009

Write it down and keep it in a tradeshow handbook for those who will follow. Go to trade shows like it matters.

Silicon Valley

Silicon Valley RSS California Customer Development

How to listen to customers, and not just the loud people

Startup Lessons Learned

SEPTEMBER 14, 2008

The people who are the lifeblood of an early-stage startup are earlyvangelists. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup? Tell your Startup Visa story Speaking 2010: Webstock, GDC, Web 2.0, They just dont need another authority figure in their life.

San Francisco

San Francisco Customer Lean Continuous Deployment

Techstars brings The Lean Startup to Boulder

Startup Lessons Learned

JULY 30, 2009

A discounted price is available for early stage entrepreneurs and students. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup? Tell your Startup Visa story Speaking 2010: Webstock, GDC, Web 2.0, April 23, 2010 in San Francisco. Bring your questions.

Lean

Lean San Francisco Continuous Deployment DC

The Product Development Model « Steve Blank

Steve Blank

FEBRUARY 23, 2009

This product development diagram had become part of the DNA of Silicon Valley. And even more importantly, was there any way to reduce risk in early stage ventures? familiar with Customer Development you should be. It’s very different than the traditional product development model.

Product Development

Product Development Developer Silicon Valley Product

Lessons Learned on Mashable today

Startup Lessons Learned

JANUARY 2, 2009

Unfortunately, they are disinterested in doing the hard work to help early stage entrepreneurs and companies. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup? Tell your Startup Visa story Speaking 2010: Webstock, GDC, Web 2.0, April 23, 2010 in San Francisco.

San Francisco

San Francisco Tampa Continuous Deployment Lean

Coffee With Startups

Steve Blank

AUGUST 20, 2009

Resegmentation means these startups are trying to lure some of the current or potential customers away from incumbents by either offering a lower cost product, or by offering features that appealed to a specific niche or subset of the existing users. Do you know the archetype of their customers? Me – “Have you used Company x’s product?

Silicon Valley

Silicon Valley Startup RSS Customer Development

The Lean Startup Tokyo edition

Startup Lessons Learned

JUNE 9, 2009

Many founders dont like to hear that visionary customers are as smart, maybe even more so, than they are. Startups need to spend time with these customers. In fact, early stage companies shouldnt be able to get time from anyone else - who else would be crazy enough to try an truly innovative new product?

Lean

Lean San Francisco Japan Continuous Deployment

Faith-Based versus Fact-Based Decision Making « Steve Blank

Steve Blank

JUNE 5, 2009

Customer Development This strategy of starting on faith, and quickly turning them into facts is the core of the Customer Development process. Employ customer development. Because at times facts may create cognitive dissonance with the beliefs that got you started and funded.

Silicon Valley

Silicon Valley RSS Vertical California

Revisiting the Software Design Manifesto (and what's changed since.

Startup Lessons Learned

AUGUST 8, 2009

When it becomes possible to build products "live" with customers, the cycle time changes and design becomes a much more dynamic process. We still struggle to create Firm software that is defect-free, and it still requires customer insight (and maybe some customer development) to discover what will Delight.

Software Review

Software Review Design Software San Francisco

Retirement and Redemption « Steve Blank

Steve Blank

FEBRUARY 23, 2009

Reply steveblank , on March 8, 2010 at 4:29 pm Said: Thanks! steve Leave a Reply Click here to cancel reply. Order Here. To Order Outside of the U.S. Now In Print! Steve Blanks 30 years of Silicon Valley startup advice.

Redemption

Redemption Silicon Valley RSS California

Vertical Markets 3: Reducing Risk in Startups « Steve Blank

Steve Blank

JUNE 3, 2009

Reducing Risk – Simulation versus Customer Development If you remember the first part of this discussion, startups face two types of risk; invention risk and/or customer/market risk. The Customer Development Process I teach and write about is designed to do just that. However, for the Web 2.0

Vertical

Vertical Silicon Valley Marketing RSS

The Leading Cause of Startup Death – Part 1: The Product.

Steve Blank

AUGUST 27, 2009

Thirty years later we now realize that its one the causes of early startup failure. This series of posts is a brief explanation of how we’ve evolved from Product Development to Customer Development to the Lean Startup. Coming next Part 2: What’s Wrong with Product Development as a Model?

Silicon Valley

Silicon Valley Product Startup Product Development

There's a Pattern Here « Steve Blank

Steve Blank

FEBRUARY 23, 2009

Yet the processes that early-stage companies were using were identical to that of large corporations. It’s a process that doesn’t exist in large companies with existing customers and markets. The “Customer Development” model is a paradox because it is followed by successful startups, yet articulated by no one.

Silicon Valley

Silicon Valley RSS Venture Capital California

It's a startup, not a spreadsheet

Startup Lessons Learned

JUNE 5, 2009

In other words, we want to use the spreadsheet to quantify our progress using the most important unit: validated learning about customers. One way to conceive of our goal in an early-stage venture is to incrementally “fill in the blanks&# for the business model that we think will one day power our startup.

San Francisco

San Francisco Lean Continuous Deployment Startup

Preparing for Chaos – the Life of a Startup « Steve Blank

Steve Blank

APRIL 29, 2009

Every potential startup founder should think about their level of comfort operating in chaos and uncertainty. It may not be for you.

Silicon Valley

Silicon Valley Iraq RSS Vietnam

Going to Trade Shows Like it Matters – Part 1 « Steve Blank

Steve Blank

MAY 21, 2009

Did this help them to understand your company/product Part 2 of the memo, to be posted tomorrow: using a trade show to generate leads. Plus tips on overall trade show strategy.

Silicon Valley

Silicon Valley RSS California Customer Development

Supermac War Story 8: Cats and Dogs - Admitting a Mistake

Steve Blank

APRIL 23, 2009

Filed under: Customer Development , SuperMac | Tagged: Steve Blank , Entrepreneurs , Early Stage Startup « Killing Innovation with Corner Cases and Consensus The Secret History of Silicon Valley Part VI: Every World War II Movie was Wrong » 7 Responses David , on April 23, 2009 at 8:58 am Said: Excellent!

Silicon Valley

Silicon Valley RSS California Customer Development

Lean Startups aren't Cheap Startups

Steve Blank

NOVEMBER 2, 2009

For those of you who have been following the discussion, a Lean Startup is Eric Ries ’s description of the intersection of Customer Development , Agile Development and if available, open platforms and open source. The Customer Development process (and the Lean Startup) is one way to do that.

Lean

Lean Silicon Valley Startup RSS

Elephants Can Dance – Reinventing HP « Steve Blank

Steve Blank

JUNE 22, 2009

Reply Sujoy Neogi , on August 14, 2010 at 10:12 pm Said: Good one, but i feel you need to listen to Steve Blank more if you are a startup. ?domiausias Reply Hans , on June 15, 2010 at 4:40 pm Said: Excellent observation. Steven Blank: Managers need to be more entrepreneurial. Me: You got to listen to them BOTH.

Silicon Valley

Silicon Valley RSS California Agile

Lo, my 2295 subscribers, who are you?

Startup Lessons Learned

MARCH 4, 2009

Ill mention one last thing about knowing what channels of communication your customers engage with. This is important, especially if you are a very early stage company. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup? April 23, 2010 in San Francisco.

San Francisco

San Francisco Lean Continuous Deployment DC

The Lean Entrepreneur is here

Startup Lessons Learned

FEBRUARY 7, 2013

BetaBrand building apparel MVPs and testing them quickly with targeted customer communities. Telecom O2 learning to move at the speed of the internet 500 Startups and their accelerated feedback loops on what works, and what doesn't work in early-stage investing. The result: a new idea I called The Lean Startup. It's a big tent.

Lean

Lean Entrepreneur Agile San Francisco

Rocket Science 3: Hollywood Meets Silicon Valley « Steve Blank

Steve Blank

JULY 9, 2009

Don’t confuse your passion for your tools with why your customers will buy your product.

Silicon Valley

Silicon Valley RSS California Video

Times Square Strategy Session – Web Startups and Customer Development

The Customer Development Manifesto: The Startup Death Spiral (part.

Trending Sources

Customer Development Fireside Chat

Tune In, Turn On, Drop Out – The Startup Genome Project

Nokia as “He Who Must Not Be Named” and the Helsinki Spring

“Speed and Tempo” – Fearless Decision Making for Startups « Steve.

Am I a Founder? The Adventure of a Lifetime. « Steve Blank

supermac War Story 1: Joining supermac

Customer Development Manifesto: The Path of Warriors and Winners.

Raising Money Using Customer Development

Out of the Ashes - Something Isn't Quite Right

Touching the Hot Stove – Experiential versus Theoretical Learning.

Blowing up the Business Plan at U.C. Berkeley Haas Business School

Vertical Markets 2: Customer/Market Risk versus Invention Risk.

Convergent Technologies: War Story 1 – Selling with Sports Scores.

Ardent 1: Supercomputers Get Personal

Create Structure out of the Gate and You’ll Thank Yourself Later

Building a new startup hub

How Investors Think About Valuation of Pre-Revenue Startups

Lessons Learned: Validated learning about customers

Top 40 Startup Posts for August 2010

Lessons Learned: The four kinds of work, and how to get them done.

Going to Trade Shows Like it Matters – Part 2

How to listen to customers, and not just the loud people

Techstars brings The Lean Startup to Boulder

The Product Development Model « Steve Blank

Lessons Learned on Mashable today

Coffee With Startups

The Lean Startup Tokyo edition

Faith-Based versus Fact-Based Decision Making « Steve Blank

Revisiting the Software Design Manifesto (and what's changed since.

Retirement and Redemption « Steve Blank

Vertical Markets 3: Reducing Risk in Startups « Steve Blank

The Leading Cause of Startup Death – Part 1: The Product.

There's a Pattern Here « Steve Blank

It's a startup, not a spreadsheet

Preparing for Chaos – the Life of a Startup « Steve Blank

Going to Trade Shows Like it Matters – Part 1 « Steve Blank

Supermac War Story 8: Cats and Dogs - Admitting a Mistake

Lean Startups aren't Cheap Startups

Elephants Can Dance – Reinventing HP « Steve Blank

Lo, my 2295 subscribers, who are you?

The Lean Entrepreneur is here

Rocket Science 3: Hollywood Meets Silicon Valley « Steve Blank

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