Steve Blank

SEPTEMBER 24, 2009

Pattern Recognition One of the great things about being an entrepreneur is that you are constantly running a pattern recognition algorithm against a continual collection of customer and market data. Let’s Fire Our Customers Part of the DNA of great entrepreneurs is a bias towards decisive and immediate action. Get it done, now.

Customer 214

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Steve Blank

AUGUST 31, 2009

The first hint lies in its name; this is a product development model, not a marketing model, not a sales hiring model, not a customer acquisition model, not even a financing model (and we’ll also find that in most cases it’s even a poor model to use to develop a product.) Where Are the Customers? Product Development Diagram 1.

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Steve Blank

OCTOBER 19, 2009

While the last post was titled “ You Know You’re Getting Close to Your Customers When They Offer You a Job “, this post should probably be titled, “You Know You’re Getting Close to Your Customers When You Offer Them a Job.&# Context here.)

Engineer 218

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Steve Blank

MARCH 20, 2009

Our first question was, did the total number of customers that had already bought products from our competitors and us represent a saturated market or the tip of the iceberg? Since I was heading a marketing department, not acting as an individual contributor, I needed to teach all of marketing the importance of customer data.

Silicon Valley 144

Silicon Valley Customer RSS Philippines 144

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 259

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Steve Blank

MARCH 19, 2009

They sold to a set of customers I knew nothing about. After talking to its resellers and customers I realized that SuperMac was the only company that could be described as “fifth in a group of three.” They had an existing distribution channel and their dealers and customers thought they knew who the company was and what it stood for.

Silicon Valley 161

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Steve Blank

JUNE 11, 2009

Passionate – is the company/product/customers the most important thing in your life? However, you will be dealing with almost daily change, (new customer feedback/insights from a Customer Development process and technical roadblocks ,) as the company searches for a repeatable and scalable business model.

Cofounder 229

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Steve Blank

APRIL 10, 2009

Since every situation is unique, there is no perfect solution to any engineering, customer or competitor problem, and you shouldn’t agonize over trying to find one. 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.

Silicon Valley 305

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Steve Blank

NOVEMBER 12, 2009

Rather than a traditional VC pitch I suggested that they do something unconventional and tell the story of their journey in Customer Discovery and Validation. The heart of the Cafepress presentation is the “ Lessons Learned from our Customers ” section. The VC firm delivered a term sheet for an 8-digit second round that afternoon.

Venture Capital 234

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Steve Blank

OCTOBER 12, 2009

Cray’s first customers were the U.S. At Ardent our hypothesis was that if we could build a desktop supercomputer powerful enough to run and display these numerical simulations there were enough customers to make this a big business. I concluded that my first job was to understand what Cray’s markets, customers and applications.

Silicon Valley 163

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Steve Blank

SEPTEMBER 14, 2009

In this time, building a successful business meant building a company that had paying customers quarter after quarter. It did not mean building a startup into a company to flip or hype on the market with no earnings or revenue, but building a company that had paying customers. They taught you about customers, markets and profits.

Silicon Valley 233

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Steve Blank

APRIL 20, 2009

Berkeley Haas Business School was courageous enough to give me a forum teach the Customer Development Methodology. The Man Who Shot Liberty Valance I always had been curious about how Silicon Valley, a place I had lived and worked in, came to be. After I retired, Jerry Engel , director of the Lester Center on Entrepreneurship , at U.C.

Silicon Valley 294

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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. He continued: “I’d like to convince my boss so our company can be your first customer.”

Silicon Valley 248

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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 200

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Steve Blank

NOVEMBER 26, 2009

So no post today on entrepreneurship, Secret History of Silicon Valley, Customer Development, Lean Startups, etc. After more customer interviews, we have shifted our market type hypothesis to- entering an existant market. Families gather from across the country to spend time with each other and feast on a traditional turkey dinner.

Silicon Valley 149

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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 129

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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. The conversation that day would become one of my professional watermarks. Silence descended across the conference table.

Silicon Valley 282

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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. These companies would take our computers and put their name on them and resell them to their customers.

Technology 142

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Steve Blank

OCTOBER 5, 2009

Oh, and since it was not code compatible with anything, we were going to have to port all the key scientific applications our customers needed (as soon as we figured out who they were.) Personal supercomputer s meant yet again learning something completely new; new computer architectures, new applications and customers, new markets.

North Carolina 129

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Steve Blank

JULY 16, 2009

But underlying the company’s existence was a fundamental hypothesis we refused to see or test - customers would care if we did. Our potential customers didn’t seem to be calling for Hollywood stories, characters and narrative. Our customers wanted to kill, shoot or hunt for something. That’s OK, because we knew better.

Silicon Valley 221

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Steve Blank

NOVEMBER 9, 2009

Oh, and we had no installed customer base. Entrepreneurs are Relentless Jim’s goal was to get other companies to put their software on an unfinished, buggy computer with no customers. Ernest Hemingway One of an entrepreneur’s greatest strengths is their relentless pursuit of a goal. This was my fault.

Silicon Valley 331

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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 135

Vertical Silicon Valley Marketing RSS 135

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 124

Vertical Silicon Valley RSS Marketing 124

Steve Blank

APRIL 9, 2009

Five Easy Pieces – The Marketing Mission After a few months of talking to customers , talking to our channel and working with sales we defined the marketing Mission (our job) was to: Help Sales deliver $25 million in sales with a 45% gross margin. Two paragraphs, Five bullets. It didn’t take more.

Silicon Valley 268

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Steve Blank

JULY 30, 2009

Your Customers are Not Who You Think For years I thought this “million unit chip sale by accident&# was a “one-off&# funny story. That is until I saw that in startup after startup customers come from places you don’t plan on. Your board nods sagely at your target customer list.

Silicon Valley 140

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Steve Blank

JULY 20, 2009

Luckily while I was teaching classes at headquarters, Zilog’s field application engineers (the technical engineers working alongside our salesmen) would work side-by-side with our large customers as they designed their systems with our chips. Customers The irony is that Zilog had no idea who would eventually become its largest customers.

Silicon Valley 195

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Steve Blank

MAY 11, 2009

And I got to experience a type of customer buying behavior I had never seen before – the Novelty Effect. People who aren’t current customers of our graphics boards will get to know our company and brand. All we had to do was tell customers they could get video into their computer – and not promise anything else.

Video 180

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Steve Blank

APRIL 2, 2009

The “strategy” of learning who SuperMac’s customers were, what solutions they needed and what our repositioning would be was a three month effort. it was the speed of the applications that customers were using to get their work done. So I was going to give our customers metrics neither they or anyone else had ever seen before.

Silicon Valley 126

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Steve Blank

MARCH 19, 2009

Or offer some real insights into our customers? It wasn’t a lack of competence or skill in her job; it was just that as far as she was concerned, her job had no connection to the rest of marketing, our customers or our ultimate success as a company. “We Was she going to propose a coherent communications strategy?

Silicon Valley 206

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Steve Blank

JUNE 29, 2009

Filed under: Customer Development , ESL , Technology | Tagged: Steve Blank , Entrepreneurs , ESL « Convergent Technologies: War Story 1 – Selling with Sports Scores A Wilderness of Mirrors » 17 Responses Michael F. You’re Hired, You’re Fired. To Order Outside of the U.S. Now In Print!

Agile 263

Agile Silicon Valley RSS California 263

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 226

Customer Development Developer Silicon Valley Customer 226

Steve Blank

JULY 2, 2009

Entrepreneur-in-Residence After SuperMac I had been approached by one of our venture investors to be an entrepreneur in residence (EIR), a Silicon Valley phrase which says one thing but means another. To Order Outside of the U.S. Now In Print! Steve Blanks 30 years of Silicon Valley startup advice.

Silicon Valley 120

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Steve Blank

JULY 27, 2009

We four instructors would grumble and complain to one another about our lack of leadership. I had been teaching Z8000 design to customers for the last year and a half. I also knew our customers. I even had time to find a girlfriend who was a contractor to the company.

Silicon Valley 120

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Steve Blank

MARCH 25, 2009

While we sometimes cut the price of graphics boards, it was only because we offered our customers no compelling reasons to buy one that was priced equivalently to the market share leaders. Was the company attempting to be a low cost provider by introducing cheaper products to an existing market? And we lost money when we did so.

Silicon Valley 153

Silicon Valley Marketing RSS California 153

Steve Blank

AUGUST 24, 2009

Dinner in a Strange Land When I was in my mid 20′s working at ESL, I was sent overseas to a customer site where the customers were our three-letter intelligence agencies. I think it is because in the end, customers count. No amount of paid publicity can achieve much if the product fails to make the customer happy.

Silicon Valley 206

Silicon Valley PR Technical Review RSS 206

Steve Blank

APRIL 6, 2009

If you are a practitioner of Customer Development, ESL was doing it before most us were born. By 1961 its customers now included our intelligence agencies. Two years out of the Air Force, serendipity (which would be my lifelong form of career planning) found me in Silicon Valley working for my first company: ESL.

Silicon Valley 190

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Steve Blank

MAY 22, 2009

While one could argue that a trade show is just another demand creation activity akin to advertising or PR, trade shows are the closest eyeball-to-eyeball contact you’re company is going to have with customers, competitors and partners. Strong pre-show promotion will let your customers and prospects know about your exhibit.

Silicon Valley 134

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