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 125

Customer Development Developer Silicon Valley Customer 125

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. HOF Capital uses some of the data-tracking services I list above for analyzing competitors and funding trends. But we’re doing it slowly.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Steve Blank

MAY 28, 2009

Customer/Market Risk Versus Invention Risk One day I was having lunch with a VC sharing what I learned from my students. Customer/Market Risk Versus Invention Risk One day I was having lunch with a VC sharing what I learned from my students. Steve,&# he said, “you’re missing the most interesting part of vertical markets.

Vertical 147

Vertical Silicon Valley Marketing Customer 147

Steve Blank

MAY 26, 2009

The time to product and scale of investment is radically different than other startup markets.&# Intellectual Property At the next class I said, “You all ought to get out and start talking to customers on day one, and get early feedback on your idea. You’re a startup, just get your product out the door.”

Vertical 151

Vertical Silicon Valley Intellectual Property RSS 151

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. And most startup code and features end up on the floor as customers never really wanted them.

Lean 250

Lean Silicon Valley Startup RSS 250

Steve Blank

OCTOBER 19, 2009

I set up an advisory board as a vehicle to get these industry experts engaged with the company and product. Other advisors provided marketing with industry-specific advice in our initial vertical markets (computational fluid dynamics, computational chemistry, finite element analysis, and petroleum engineering).

Engineer 205

Engineer Silicon Valley Part-Time VPE Advisory Board 205

Steve Blank

NOVEMBER 23, 2009

The Times Square Strategy discussion I had with Eric Ries , was still top of mind, so instead of my standard Customer Development lecture , I offered my thoughts on: the origin of Customer Development, where we are today, and where does Customer Development go, and how you can help get it there.

Customer Development 217

Customer Development Developer Silicon Valley Customer 217

Steve Blank

MARCH 19, 2009

While I was consulting for them, I got a call from a recruiter for a company called SuperMac, which made add-on products for the Macintosh. Now with a new infusion of $8 million dollars of venture capital, SuperMac had been resurrected from the dead and was attempting to restart.

Silicon Valley 150

Silicon Valley Software Review Technical Review RSS 150

Steve Blank

JULY 13, 2009

Yet we hadn’t shipped a single product. All this activity occurring before we actually shipped a product. Believing Your Own BS is Toxic Lots of noise and smoke before a product ships seems to be a toxic byproduct of enthusiastic entrepreneurs. Which at this stage of the company was marketing and financing.

Silicon Valley 122

Silicon Valley Product RSS California 122

Steve Blank

SEPTEMBER 3, 2009

This post describes how the traditional product development model distorts startup sales, marketing and business development. The meaning of alpha test , beta test, and first customer ship are pretty obvious to most engineers. Here’s what the product development diagram looks like from a sales perspective.

Customer Development 220

Customer Development Developer Customer Silicon Valley 220

Steve Blank

FEBRUARY 23, 2009

I was consulting for the two venture capital firms who between them put $12 million into my last failed startup. 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 126

Silicon Valley RSS Venture Capital Customer Development 126

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 246

Customer Development Developer Customer Silicon Valley 246

Steve Blank

AUGUST 13, 2009

The first few months of my startups were centered around building the founding team, prototyping the product and raising money. I’m convinced that starting a company without talking to customers is like throwing your time and money in the street (unless you’re already a domain expert). Fundraising isn’t the product.

Silicon Valley 185

Silicon Valley RSS Technical Review Lean 185

Steve Blank

JULY 2, 2009

To an entrepreneur, being asked to join a venture firm with an Entrepreneur-in-Residence title means you have been tapped on the shoulder by the VC gods. The CDROM content business in the early 1990’s was one of the many of the long line of venture capital fads. How could it go wrong? Little did I know.

Silicon Valley 120

Silicon Valley Technical Review RSS Software Review 120

Steve Blank

APRIL 10, 2009

An example of a reversible decision could be adding a product feature, a new algorithm in the code, targeting a specific set of customers, etc. An irreversible decision is firing an employee, launching your product, a five-year lease for an expensive new building, etc. These are usually difficult or impossible to reverse.

Silicon Valley 302

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Steve Blank

SEPTEMBER 10, 2009

In future posts I’ll describe how Eric Ries and the Lean Startup concept provided the equivalent model for product development activities inside the building and neatly integrates customer and agile development. They never understood Market Type. Why does Market Type matter? End result?

Customer Development 203

Customer Development Developer Customer Silicon Valley 203

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.

Vertical 130

Vertical Silicon Valley Marketing RSS 130

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 123

Vertical Silicon Valley RSS Marketing 123

Steve Blank

APRIL 20, 2009

Berkeley Haas Business School was courageous enough to give me a forum teach the Customer Development Methodology. And since there was no Venture Capital in the 1950′s/’60′s where was the money coming from? After I retired, Jerry Engel , director of the Lester Center on Entrepreneurship , at U.C.

Silicon Valley 279

Silicon Valley RSS San Francisco Technical Review 279

Steve Blank

SEPTEMBER 24, 2009

And while technically correct, and eventually the company ought to fire unprofitable customers, the result when done by impatient founders is most often less than optimal. While it is “just business,” many customers form emotional bonds sometimes with products, other times with the company itself. And they rarely come back.

Customer 201

Customer Silicon Valley RSS California 201

Steve Blank

JUNE 11, 2009

Can you recognize and capitalize on them? Passionate – is the company/product/customers the most important thing in your life? And you’ll still need to have a resilient and agile personality, as new customer and product opportunities will appear and change your work. But it won’t be happening daily.

Cofounder 223

Cofounder Founder Silicon Valley Technical Cofounder 223

Steve Blank

JUNE 25, 2009

Twenty eight years ago I was the bright, young, eager product marketing manager called out to the field to support sales by explaining the technical details of Convergent Technologies products to potential customers. So their management teams were insisting that they OEM (buy from someone else) these products.

Technology 139

Technology Silicon Valley Fractional VPE Part-Time VPE 139

Steve Blank

DECEMBER 7, 2009

Customer Development We were starting Epiphany, my last company. I was out and about in Silicon Valley doing what I would now call Customer Discovery trying to understand how marketing departments in large corporations worked. making use of non disclosure agreement is both expensive and counter productive.

Silicon Valley 232

Silicon Valley Non-disclosure Agreement NDA Startup 232

Steve Blank

OCTOBER 8, 2009

Lessons to Learn By the time I joined Ardent I thought I was an experienced marketer, but I’ll never forget my first real lesson in what it meant to understand customers and product/market fit. Customer development isn’t just for [.] understands and groks Customer Development.

Silicon Valley 275

Silicon Valley RSS Customer Development California 275

Steve Blank

OCTOBER 12, 2009

Ardent 3: Supercomputer Porn « Steve Blank steveblank.com/2009/10/12/ardent-3-supercomputer-porn – view page – cached + Customer Development Manifesto: The Path of Warriors and Winners (part 5) + Can You Trust Any VC’s Under 40? Reply links for 2009-10-13 « Blarney Fellow , on October 13, 2009 at 6:10 pm Said: [.]

Silicon Valley 151

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Steve Blank

MAY 7, 2009

I finally understood how valuable these contests can be for students in cities or countries without a venture capital or entrepreneurial infrastructure. And even if they did – customers don’t ask to see your business plan. Funny, but with their feedback, we changed several parts of the product. to compete.

Business Plan 143

Business Plan Silicon Valley RSS Venture Capital 143

Steve Blank

OCTOBER 5, 2009

A Phone Call After I left MIPS Computers I was in New York tagging along with a friend (a computer architect whose products at Apple a decade later would change the shape of personal computing) who was consulting for a voice recognition startup. It would be the company where I actually earned the title.

North Carolina 126

North Carolina Silicon Valley Fractional VPE Part-Time VPE 126

Steve Blank

JULY 30, 2009

As the (very junior) product marketing manager I got a call from our local salesman that someone at Apple wanted more technical information than just the spec sheets about our new (not yet shipping) chip. Your board nods sagely at your target customer list. Market Type But most startups aren’t in existing markets.

Silicon Valley 133

Silicon Valley RSS California Customer Development 133

Steve Blank

APRIL 9, 2009

The other departments in marketing gave the same answers; the product-marketing department said their job was to write data sheets. To do that we will create end-user demand and drive it into the sales channel, educate the channel and customers about why our products are superior, and help Engineering understand customer needs and desires.

Silicon Valley 263

Silicon Valley Technical Review RSS PR 263

Steve Blank

MARCH 25, 2009

Was SuperMac attempting to introduce radically new products and create a new market ? Was the company attempting to be a low cost provider by introducing cheaper products to an existing market? Was the company attempting to introduce faster and better products to an existing market? No, not really.

Silicon Valley 144

Silicon Valley Marketing RSS California 144

Steve Blank

MAY 11, 2009

But here was a $499 product that could let everyone use video.) Even though we won’t make a ton of money, it will be an ambassador for the rest of our product family. People who aren’t current customers of our graphics boards will get to know our company and brand. If we’re smart we’ll cross-sell them one of our other products.

Video 168

Video Silicon Valley RSS California 168

Steve Blank

JULY 16, 2009

Customer Development There was nothing wrong about Rocket Science having a vision radically different than the conventional wisdom. Customer Development says having a vision, faith and a set of hypotheses are a normal part of the startup experience. The mistake isn’t having a vision and taking risks.

Silicon Valley 212

Silicon Valley RSS Video San Diego 212

Steve Blank

APRIL 2, 2009

Metrics – Mine is Bigger Than Yours The first thing SuperMac needed to do was to change how our potential color desktop publishing customers viewed our products versus our competitors’ products. Over the years marketers have found that using numbers to compare yourself to other products works well.

Silicon Valley 124

Silicon Valley Technical Review RSS Software Review 124

Steve Blank

MARCH 19, 2009

So I asked the fatal question, “Has anyone ever looked at the customer registration cards? Has anyone ever spoken to a customer?” The one or two product mangers who should have known better glanced down at their shoes. Then someone asked, “Well, who do you think our customers are?” Ah, a leading question. If so, where?

Silicon Valley 192

Silicon Valley RSS Software Review Technical Review 192

Steve Blank

JULY 20, 2009

Burnout can turn productive employees into emotional zombies and destroy careers. But it can also force you to hit the pause button and perhaps take a moment to reevaluate your life and your choices. You created it and own it.

Silicon Valley 181

Silicon Valley Chad RSS San Francisco 181

Steve Blank

FEBRUARY 23, 2009

This product development diagram had become part of the DNA of Silicon Valley. Were startups failing because of product failures or was there some other failure mode? And even more importantly, was there any way to reduce risk in early stage ventures? a customer before you try and build a business.

Product Development 146

Product Development Developer Silicon Valley Product 146

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 263

Silicon Valley Product Startup Product Development 263