Steve Blank

AUGUST 18, 2010

Here’s his story of when Customer Development failed. We were lucky to learn about Customer Development early on in the life of our startup. It made more sense than our 60 page business plan predicated on a B-school class and a supernatural ability to predict the future. Focus on revenue from day one.

Customer Development 230

Customer Development Developer Customer California 230

Steve Blank

AUGUST 29, 2011

93% of startups that scale prematurely never break the $100k revenue per month threshold. Filed under: Big Companies versus Startups: Durant versus Sloan , Business Model versus Business Plan , Customer Development , Market Types. Turns out his birthday is in a week, September 7th. Happy birthday Max.

Software Review 292

Software Review Early Stage Technical Review Startup 292

Steve Blank

MARCH 8, 2011

It was designed to bring together many of the new approaches to building a successful startup – customer development, agile development, business model generation and pivots. We were positing that 20 years of teaching “how to write a business plan” might be obsolete. Would we signs of success early?

Lean 298

Lean Business Model Customer Development Guinea 298

Steve Blank

SEPTEMBER 3, 2009

This post describes how the traditional product development model distorts startup sales, marketing and business development. This post describes how the traditional product development model distorts startup sales, marketing and business development. What plan says that?

Customer Development 215

Customer Development Developer Customer Silicon Valley 215

Steve Blank

FEBRUARY 16, 2010

You would think that would be enough to get wrong, but entrepreneurs and investors compound this problem by assuming that all startups grow and scale by executing the Revenue Plan. All discussion focused on “missing the revenue plan.”. Revenue Plan Needs to Match Market Type. They don’t. What went wrong?

Revenue 230

Revenue Balance Sheet Hockey Stick Burn Rate 230

Steve Blank

MAY 6, 2015

They are: value proposition, product/service the company offers (along with its benefits to customers). customer segments, such as users and payers or moms or teens. distribution channels to reach customers and offer them the value proposition. customer relationships to create demand. The same is true in a Lean Startup.

Lean 120

Lean Agile Business Model Customer Development 120

Steve Blank

NOVEMBER 5, 2009

Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Entrepreneurs put together their funding presentation by extracting the key ideas from their business plan, putting them on PowerPoint/Keynote and pitching the company – until they get funded or exhausted.

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

Steve Blank

JANUARY 14, 2014

A pivot can change any of nine different things in your business model. A pivot may mean you changed your customer segment, your channel, revenue model/pricing, resources, activities, costs, partners, customer acquisition – lots of other things than just the product. A Pivot is not just changing the product.

Business Model 330

Business Model Lean Customer Development Channel 330

Steve Blank

APRIL 4, 2011

The Business Model Canvas is a great way to diagram it out. Each side of a market has it’s own Value Proposition, Customer Segment and Revenue Model.) They learned that one their core customer hypothesis about their buyers, “startups would want to buy computing capacity on a “spot market” was wrong.

Customer 234

Customer Business Model Nebraska Cloud 234

Steve Blank

FEBRUARY 16, 2012

The idea of a Business Model competition first emerged when I realized that Business Plan writing ought to be taught in English Departments – as they’re the best example of creative writing entrepreneurs will ever do. The Business Plan ?- And your revenue plan is something more than a hallucination.

Business Model 263

Business Model Customer Development Utah Business Plan 263

Steve Blank

NOVEMBER 18, 2010

For decades startups were managed by pretending the company would follow a predictable path (revenue plan, scale, etc.) In fact, for decades if you drew this diagram on day one of a startup VC’s would nod sagely and everyone would get to work heading to first customer ship. The Revenue Plan – The Third Fatal Assumption.

Burn Rate 247

Burn Rate Management Business Model Customer Development 247

YoungUpstarts

SEPTEMBER 4, 2016

Transportation partners play an enormous role in the supply chain as they bring products into distribution centers and sometimes directly to customers. Develop Relationships with Supply Chain Partners. Develop relationships with each of your supply chain partners and make communication a top priority.

Management 145

Management Forecast Los Angeles San Francisco 145

Steve Blank

OCTOBER 31, 2014

There’s nothing wrong with a business that supports you and perhaps an extended family. But if you want to build a scalable startup you need to be asking how you can you get enough customers/users/payers to build a business that can grow revenues past several $100M/year. With 317 million people the U.S.

Global 335

Global Australia Silicon Valley China 335

Steve Blank

MAY 14, 2012

The excerpts, which appeared first at Inc.com , highlight the Customer Development process, best practices, tips and instructions contained in our book. Therefore, focusing on execution and delivering a product or service based on those initial, untested hypotheses is a going-out-of-business strategy.

Balance Sheet 335

Balance Sheet Business Model Customer Development Metrics 335

Steve Blank

DECEMBER 7, 2010

Many entrepreneurship courses focus on teaching students “how to write a business plan.” If you’ve read any of my previous posts, you know I believe that: 1) a product is just a part of a startup, but understanding customers, channel, pricing, etc. This class is not about how to write a business plan.

Wiki 311

Wiki Lean Management Business Model 311

Steve Blank

JANUARY 22, 2013

Those who don’t make it into the class are offered a variety of on- and off-line tools, including government-funded translations of Steve’s nine-part Udacity.com Customer Development lectures , excerpts from the Startup Owner’s Manual in Spanish, and they’ve translated a long list of Code Academy courses and other tools as well.

Colombia 321

Colombia Lean Silicon Valley Coder 321

Steve Blank

MARCH 4, 2014

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. Big Companies versus Startups: Durant versus Sloan Business Model versus Business Plan'

IRR 335

IRR Startup Business Model Agile 335

Steve Blank

JANUARY 25, 2010

Your job as a founder is to quickly validate whether the model is correct by seeing if customers behave as your model predicts. Most of the time the darn customers don’t behave as you predicted. How Does Customer Development, Agile Development and Lean Startups Fit? Business Plan Versus Business Model.

Agile 335

Agile Startup Silicon Valley Business Model 335

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, 2013

Those who don’t make it into the class are offered a variety of on- and off-line tools, including government-funded translations of Steve’s nine-part Udacity.com Customer Development lectures , excerpts from the Startup Owner’s Manual in Spanish, and they’ve translated a long list of Code Academy courses and other tools as well.

Colombia 271

Colombia Lean Silicon Valley Coder 271

Steve Blank

MARCH 11, 2015

They’ve found product/market fit (what products customers want to buy). They’ve learned the best distribution channel to get the product from their company to the customer. They’ve figured out the revenue model (subscription, license, direct sale, etc.) and how to price the product.

Widget 120

Widget Lean Business Model Metrics 120

Steve Blank

DECEMBER 3, 2012

A business model for an existing company or division is not filled with hypotheses, it is filled with a series of facts. Operating divisions execute the known business model. Plans and processes are in place, and rules, job specifications, revenue, profit and margin goals have been set. We will propose some alternatives.

Business Model 333

Business Model Customer Development United States Operations 333

Steve Blank

MARCH 18, 2011

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. They taught you about customers, markets and profits. The Business Plan (Concept- Alpha-Beta - FCS ) became the playbook for startups. The New Exits.

Internet 334

Internet IPO Silicon Valley Agile 334

Steve Blank

MARCH 25, 2011

Week 3 of the class and our teams in our Stanford Lean LaunchPad class were hard at work using Customer Development to get out of the classroom and test the first key hypotheses of their business model: The Value Proposition. and report the results of face-to-face customer discovery. This post is part three.

Cloud 228

Cloud Intellectual Property Lean Customer Development 228

Startup Lessons Learned

JANUARY 2, 2009

We were even more embarrassed by the pathetically small number of customers we had, and the pathetically low amount of revenue we had earned so far. We’d always cringe as we admitted that, no, we really only had a few thousand customers and a few thousand dollars in monthly revenue. Retention cohort analysis.

San Francisco 60

San Francisco Tampa Continuous Deployment Lean 60

Steve Blank

JUNE 8, 2009

In the last three posts, we drew the relationship of market risk and invention risk with vertical markets and pointed out verticals where customer development would be useful. In contrast to simply executing your business plan, the Customer Development process is built on low-cost and continuous learning and iterating.

Vertical 122

Vertical Silicon Valley RSS Marketing 122

Steve Blank

MAY 3, 2011

Last week the teams tested their Revenue Models hypotheses: what are customers willing to pay for? Partners are the external companies whose product or service combines with your Value Proposition to create a complete customer solution or “whole product&# to satisfy customers. Week 8 of the class. Veritas turbines.

South Dakota 217

South Dakota Business Model Lean United States 217

Startup Lessons Learned

JUNE 5, 2009

And so the spreadsheet is built with conservative assumptions, including a final revenue target. No matter how low we make the revenue projections for this new product, it’s extremely unlikely that they are achievable. That’s because the model is based on assumptions about customers that are totally unproven.

San Francisco 102

San Francisco Lean Continuous Deployment Startup 102

Startup Lessons Learned

OCTOBER 23, 2013

In the Udemy course, Alistair and Ben expand these basics into a description of how to create empathy, stickiness, virality, revenue, and scale. Stickiness, Ben and Alistair say, is where people move on too quickly--they don’t make sure they really have a product that has the right features and functionality to meet their customers’ needs.

Analytics 167

Analytics Lean Widget Metrics 167

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. Lets see why.

Lean 244

Lean Silicon Valley Startup RSS 244

VC Cafe

JULY 26, 2020

In a capital scarce environment following the Dot Com crash, startups needed to do more with less and survive long enough to generate revenue. Most principles of Lean Startup remain true, as described by Steve Blank in The Lean Startup Changes Everything : Business Plans are dead: Startups a series of hypothesis that need to be tested.

Lean 214

Lean Seed Capital Startup Burn Rate 214

Steve Blank

JULY 28, 2011

From the point of view of scientists and engineers in a university lab, too often entrepreneurship in all its VC-driven glory – income statements, balance sheets, business plans, revenue models, 5-year forecasts, etc. And they’ll do this using the business model / customer development / agile development solution stack.

Engineer 278

Engineer Silicon Valley United States Intellectual Property 278

Steve Blank

AUGUST 27, 2009

This series of posts is a brief explanation of how we’ve evolved from Product Development to Customer Development to the Lean Startup. The Product Development Diagram Emerging early in the twentieth century, this product-centric model described a process that evolved in manufacturing industries.

Silicon Valley 260

Silicon Valley Product Startup Product Development 260

Steve Blank

NOVEMBER 1, 2010

With an out-of-this-world business plan. When it was spun out as a a separate company, Iridium’s 1990 business plan had assumptions about potential customers, their problems and the product needed to solve that problem. A Business Plan Frozen in Time. This business plan was a static document.

Business Plan 335

Business Plan Customer Business Model Customer Development 335

ReadWriteStart

AUGUST 1, 2011

From the point of view of scientists and engineers in a university lab, too often entrepreneurship in all its VC-driven glory - income statements, balance sheets, business plans, revenue models - seems like another planet. And they'll do this using the business model-customer development-agile development solution stack.

Silicon Valley 118

Silicon Valley Intellectual Property Balance Sheet Lean 118

Steve Blank

DECEMBER 10, 2014

We didn’t know it at the time, but with that investment we had paid for front-row VIP seats to witness the origins of Customer Development and the Lean Startup. Our initial business plan started with an incorrectly identified buyer, value propositions that were wrong, and guesses everywhere else.

Maryland 272

Maryland Lean DC Virginia 272

Up and Running

MAY 23, 2016

In fact, SaaS industry revenue is projected to grow from $49 billion in 2015 to $67 billion in 2018, a compound annual growth rate of approximately eight percent. Step 1: Start with a lean plan. Instead of sitting down to write a 40-page business plan, start with a one-page pitch. How to Write a Traditional Business Plan.

Software Review 74

Software Review Software Delaware Forecast 74