Steve Blank

MARCH 26, 2019

The class was unique in that it was 1) team-based, 2) experiential, 3) lean-driven (hypothesis testing/business model/customer development/agile engineering). When we started this class, the concept of Lean (business models, customer development, agile, pivots, mvp’s) was new to everyone. Class Velocity/Depth.

Lean 248

Lean Business Model Balance Sheet Video 248

Steve Blank

FEBRUARY 26, 2020

What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. For a Series A round you want to prove you have built a repeatable and scalable sales/revenue model and understand all parts of the business model. Business Model. Expenses?

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Steve Blank

FEBRUARY 23, 2016

As we prepared for the new Hacking for Defense class at Stanford, we had to stop and ask ourselves: How do we use the Business Model Canvas if the primary goal is not to earn money, but to fulfill a mission? In other words, how can we adapt the Business Model Canvas when the metrics of success for an organization is not revenue?

Business Model 120

Business Model Revenue Channel Community 120

Steve Blank

JANUARY 22, 2014

Few entrepreneurs find this scalable and repeatable business model because it’s not easy. Startups still need capital to scale once they find good product-market fit and a repeatable-scalable business model.). The cloud , open-source development tools and web 2.0

Early Stage 286

Early Stage Silicon Valley Oregon Technical Review 286

Steve Blank

JUNE 26, 2015

The first, the notion of the “ ambidextrous organization ” from O’Reilly and Tushman , posits that companies that want to do continuous innovation need to execute their core business model while innovating in parallel. Horizon 1 activities support existing business models. Horizon 1 is the company’s core business.

Lean 120

Lean Management Business Model Customer Development 120

Steve Blank

MARCH 3, 2015

It taught lean theory ( business model design , customer development and agile engineering) and practice. The irony is that once you’ve gone through the lean cycle, you have all the information that goes in a business plan: customers, sales strategy, product features, and financial metrics. The Business Plan is Dead.

Business Plan 120

Business Plan Silicon Valley Saudi Arabia Lean 120

Steve Blank

OCTOBER 24, 2017

— all great things when you are executing and scaling a known business model. Because the new CEO had built a team capable of and comfortable with executing an existing business model, the company would fail or get acquired. Board Control. For three decades (1978-2008), investors controlled the board. The founders.

Founder 245

Founder Technical Review CTO Hire IPO 245

Steve Blank

MARCH 4, 2010

In the Customer Development model, the premise is that a very small group of early visionary customers will guide your product features until you find a profitable business model. If you’re selling to a business, your Earlyvangelists will end up using your slides and metrics to help sell your product inside their own company!

Customer Development 304

Customer Development Business Model Developer Search 304

Steve Blank

MARCH 4, 2014

The Enterprise: Business Model Execution We know that a startup is a temporary organization designed to search for a repeatable and scalable business model. The corollary for an enterprise is: A company is a permanent organization designed to execute a repeatable and scalable business model.

IRR 335

IRR Startup Business Model Agile 335

Steve Blank

AUGUST 21, 2013

What we found is that during the class almost all of them pivoted - making substantive changes to one or more of their business model canvas components. Quite a few of the teams were building biotech, devices or digital health products.

SBIR 314

SBIR Technical Review Lean Startup 314

Steve Blank

DECEMBER 17, 2009

Web startups are at real disadvantage here as founders may confuse web metrics, A/B testing and on-line surveys as the entirety of first-hand knowledge – for most web business models they are not. In fact, this mistake can be a “going out of business” strategy. Metrics tell you that something is happening.

Metrics 239

Metrics Customer Customer Development Lean 239

Steve Blank

JULY 13, 2021

Founders of startups (and new ventures inside existing companies) are searching for product/market fit and a repeatable and scalable business model. At the start of the 21st century, after two decades and 8 startups, I retired and had time to think about how VCs directed their startups using business plans. experiential.

Lean 433

Lean Agile Business Model Business Plan 433

Steve Blank

MARCH 17, 2020

But next the question is, ‘What happens to my business?”. The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? What does your new business model look like? What does my business model look like now? What are the new financial metrics? How do you know?

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Steve Blank

APRIL 21, 2011

Their week 6 business model now looked like this: . Last week we challenged the team that unless they developed hardware which could tell the difference between a weed and a plant, their business model would be just another set of PowerPoint slides. Relationships and trust are important. All that we expected.

Channel 215

Channel Artificial Inteligence San Francisco Business Model 215

Steve Blank

NOVEMBER 25, 2013

Investors sitting through Incubator or Accelerator demo days have three metrics to judge fledgling startups – 1) great looking product demos, 2) compelling PowerPoint slides, and 3) a world-class team. Teams can prove their competence and validate their ideas by showing investors evidence that there’s a repeatable and scalable business model.

Oakland 326

Oakland Incubator Lean Metrics 326

Steve Blank

AUGUST 3, 2012

Long before there was the Lean Startup, Business Model Canvas or Customer Development there was a guy in Santa Barbara California who had already figured it out. That earned us the right to ask questions of fact about their department’s mission, goals, operations, volumes, tools, methods, and success metrics.

San Jose 256

San Jose Technical Review Customer Development Software Review 256

Steve Blank

FEBRUARY 25, 2014

Over 10 weeks each team gets out of the building talking to 100 customers to test their hypotheses across all 9 boxes in the business model canvas. We track each team’s progress as they test their business model hypotheses. The Investment Readiness Level provides a “how are we doing” set of metrics.

Incubator 310

Incubator Intellectual Property Startup Lean 310

Steve Blank

JUNE 23, 2016

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. These metrics make it difficult for a company that wants to invest in long-term innovation. These resulting business models made them look incredibly profitable.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Steve Blank

JUNE 1, 2011

Reinventing the board meeting may offer venture-backed startups a more efficient, productive way to direct and measure their search for a profitable business model. Yet boards of large companies exist to monitor efficient strategy and execution of a known business model. The Wrong Metrics. The Wrong Discussion s.

Silicon Valley 290

Silicon Valley Venture Capital Business Model Balance Sheet 290

Steve Blank

JANUARY 28, 2014

0:43: Business Plans versus Business Models. 2:21: Accounting Metrics in a Large Company vs. Metrics that Matter in a Startup. 6:07: Engineering: Waterfall Development in a Large Company vs. Metrics that Matter in a Startup. 1:28: Using the Business Model Canvas. 1:53: Types of Startups.

Founder 327

Founder Intellectual Property Lean Customer Development 327

Steve Blank

JUNE 1, 2011

Reinventing the board meeting may offer venture-backed startups a more efficient, productive way to direct and measure their search for a profitable business model. Yet boards of large companies exist to monitor efficient strategy and execution of a known business model. The Wrong Metrics. The Wrong Discussion s.

Silicon Valley 258

Silicon Valley Business Model Venture Capital Balance Sheet 258

Steve Blank

FEBRUARY 22, 2010

Startups that are searching for a business model need to keep score differently than large companies that are executing a known business model. Yet most entrepreneurs and their VC’s make startups use financial models and spreadsheets that actually hinder their success. Managing the Business. Startup Metrics.

Balance Sheet 298

Balance Sheet Startup Burn Rate Metrics 298

Steve Blank

OCTOBER 11, 2016

And not keep investors informed about changes to your business model can have serious consequences. We did three iterations of the product in less than 12 months, each one progressively going off of different consumer metrics that we found and then partner feedback.

Columbus 245

Columbus Entrepreneur Ohio Cofounder 245

Steve Blank

MARCH 11, 2015

And worse, even if someone does manage to start something new, our management structure has so many financial, legal and HR hurdles that every initiative needs to match our existing business financial metrics, processes and procedures. That means in their core business, large companies have a series of knowns. Lessons Learned.

Widget 120

Widget Lean Business Model Metrics 120

Steve Blank

MARCH 29, 2012

for A Repeatable and Scalable Business Model. Failure is an Integral Part of the Search for the Business Model. No Business Plan Survives First Contact with Customers. Startup Metrics are Different from Existing Companies. There Are No Facts Inside Your Building, So Get Outside. Not All Startups Are Alike.

Customer Development 328

Customer Development Developer Customer Agile 328

Steve Blank

NOVEMBER 21, 2015

Corporations focused on financial metrics like Return On Net Assets and Internal Rate of Return to reap the benefits of the last technology cycle. As a result, corporate R&D organizations have been producing sustaining innovations that protect and prolong the life of existing business models and their products and revenue streams.

Silicon Valley 120

Silicon Valley Venture Capital United States Technical Review 120

Steve Blank

JUNE 21, 2017

8:05 Business Model Canvas – Alexander Osterwalder. 32:05 No Innovation Pipeline, Guidance or Metrics. Or just parts of the interview: 1:20 Failure and Lessons Learned. 2:35 The origins of the Lean Startup. 3:35 Startups are not smaller versions of a larger company. 6:22 What’s Customer Development.

Silicon Valley 222

Silicon Valley Lean Government Boston 222

Steve Blank

FEBRUARY 9, 2012

Integrates Alexander Osterwalders “Business Model Canvas” as the front-end and “scorecard” for the customer discovery process. and finally it teaches a “new math” for startups: “metrics that matter.”. and finally it teaches a “new math” for startups: “metrics that matter.”.

Entrepreneur 289

Entrepreneur Lean Business Model Customer Development 289

Steve Blank

MAY 14, 2012

Any dispassionate observer would recognize that on Day One, a start-up has no customers, and unless the founder is a true domain expert, he or she can only guess about the customer, problem, and business model. Financial progress is tracked using metrics like income statement, balance sheet, and cash flow.

Balance Sheet 335

Balance Sheet Business Model Customer Development Metrics 335

Steve Blank

JUNE 5, 2018

We describe their efforts as “heroic” because all the established procedures and processes in a large company are primarily designed to execute and support the current business model. Some examples of innovation tools are Customer Development, Design Thinking, User-Centric Design, Business Model Canvas, Storytelling, etc.

Programming 320

Programming Incubator Leadership Silicon Valley 320

Steve Blank

DECEMBER 7, 2010

Business schools teach aspiring executives a variety of courses around the execution of known business models, (accounting, organizational behavior, managerial skills, marketing, operations, etc.). In contrast, startups search for a business model. (Or to optimize this search. to optimize this search.

Wiki 311

Wiki Lean Management Business Model 311

Steve Blank

NOVEMBER 8, 2013

In this case the basis of competition on the X/Y axes are metrics defined by the users in the existing market. The Petal Diagram drives your business model canvas. The X/Y axis competitive analysis slide is a used by existing companies who plan to enter into an existing market.

Venture Capital 335

Venture Capital Customer Development Business Model Lean 335

Steve Blank

MARCH 17, 2015

His organization ran a corporate incubator for disruptive ( horizon 3 ) experiments and provided innovation support for the divisions for process and business model innovations ( Horizon 1 and 2.) Roberto’s innovation teams are temporary organizations designed to search for a repeatable and scalable business model.

Lean 120

Lean Metrics Business Model Distribution 120

Steve Blank

JULY 1, 2014

Investors sitting through Incubator or Accelerator demo days have three metrics to judge fledgling startups – 1) great looking product demos, 2) compelling PowerPoint slides, and 3) a world-class team. a language corporate innovation groups can use to communicate to business units and finance. No ambiguity. Clarity is good.

Framework 306

Framework Sacramento Customer Development Lean 306

Steve Blank

JANUARY 25, 2010

In this post we’re going to offer a new definition of why startups exist : a startup is an organization formed to search for a repeatable and scalable business model. A Business Model. Ok, but what is a business model ? A business model describes how your company creates, delivers and captures value.

Agile 335

Agile Startup Silicon Valley Business Model 335

Steve Blank

APRIL 15, 2014

Teams apply by filling out both a business model canvas and a “ competitive petal slide.” First it forces the students to read and understand “ what’s a business model canvas ” before they even come to class. Team Application: Business Model Canvas. Having the teams do this accomplishes three things.

Lean 268

Lean Due Diligence Business Model Video 268

Steve Blank

NOVEMBER 7, 2013

For most big, established companies like us, our business models were developed years—even decades ago. We’ve built up strength in executing our business model, not creating new ones. It didn’t take us very long to connect the dots between exponential growth, business model innovation and the “Lean Startup” movement.

Lean 326

Lean Nepal Cofounder Customer Development 326