Entrepreneurship as a Science – The Business Model/Customer Development Stack

Steve Blank

It’s the combination of Business Model Design and Customer Development. Business Model Design Gets Dynamic, Customer Development Gets Strategic. One of the key tenets of Customer Development is that your business model is nothing more than a set of untested hypotheses.

Customer Development for Web Startups

Steve Blank

Customer Development is a technique startups use to quickly iterate and test each part of their business model. How you execute Customer Development varies, depending on your type of business. Customer Development In Context.

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The Art of the Customer Development Conversation

Market by Numbers

Market By Numbers on Twitter | Entries RSS | Comments RSS Market By Numbers High-Tech Marketing and Customer Development Home What is Customer Development? The key to effective conversations is in developing the conversation around your objectives for the discussion.

Hubris, Passion and Customer Development

Steve Blank

Filed under: Customer Development. Customer DevelopmentWhile I was teaching at Columbia in New York in November I was interviewed for the Shoshin Project by my friend Christian Jorg.

Raising Money Using Customer Development

Steve Blank

Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Are there customers for what you are building? No amount of learning how to get a VC meeting or improving your VC demo skills will fix the lack of concrete customer data.

Lessons Learned: What is customer development?

Startup Lessons Learned

Lessons Learned by Eric Ries Saturday, November 8, 2008 What is customer development? But too often when its time to think about customers, marketing, positioning, or PR, we delegate it to "marketroids" or "suits." They almost always fail for lack of customers.

B2B Customer Development

Market by Numbers

Market By Numbers on Twitter | Entries RSS | Comments RSS Market By Numbers High-Tech Marketing and Customer Development Home What is Customer Development? Post-Launch Customer Development These are tricky waters for the reasons described above.

Free Customer Development Help – Survey.io

Startup Marketing Blog

Startup Marketing Blog – By Sean Ellis Unlocking Startup Growth By Sean Ellis of 12in6 May 18th 09 Free Customer Development Help – Survey.io I’m excited to announce a project that I’ve been working on with KISSmetrics called Survey.io , which provides startups with a free and easy way to prepare, distribute and analyze an initial customer development survey. I strongly encourage you to setup and run your own customer development survey via Survey.io.

Job Titles That Can Sink Your Startup

Steve Blank

I’ve been running our company, cycling through Customer Discovery and Validation and the board suggested that I was running out of bandwidth and needed some help in closing our initial orders. a well-understood group of customers. Did he have a well understood group of customers? “No.”

Why Startups are Agile and Opportunistic – Pivoting the Business Model

Steve Blank

Each sale requires us to handhold the customer and takes way too long to close. Whether they’re using a formal process to search for a business model like Customer Development or just trial and error, startup founders are intuitively goal-seeking to optimize their business model.

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Perfection By Subtraction – The Minimum Feature Set

Steve Blank

One of the principles of Customer Development is to get out of the building and understand the smallest feature-set customers will pay for in the first release.). I can’t get more than one of ten potential customers to think that this is something they’d buy.”

Customer Development Manifesto: The Path of Warriors and Winners.

Steve Blank

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.

Solving the Innovator’s Dilemma – Customer Development in a Big Company

Steve Blank

At times I’ll do what I consider an extension of teaching; a two-day Customer Discovery/Validation intensive session with a large corporation serious about Customer Development at my ranch on the California Coast. We spent two days of analyzing and exploring their customer discovery visits just completed across South America, Africa and Asia. We used what they learned to plan their next steps for additional Discovery, and ultimately Customer Validation.

Updated Customer Development Image

Market by Numbers

Market By Numbers on Twitter | Entries RSS | Comments RSS Market By Numbers High-Tech Marketing and Customer Development Home What is Customer Development? ralxz's Blogs said: Updated Customer Development Image [link] [.]

No One Wins In Business Plan Competitions

Steve Blank

A business plan is the execution document that large companies write when planning product-line extensions where customer, market and product features are known. A simple way to think about it is that in a startup no business plan survives first contact with customers.

The Phantom Sales Forecast – Failing at Customer Validation

Steve Blank

Customer Validation needs to have the CEO actively involved. Customer Development Diagnostics over Lunch. He went through his product feature by feature and matched them to the customer problems. It certainly sounded like he had done a great job of Customer Discovery.

Customer Development Manifesto: Market Type (part 4) « Steve Blank

Steve Blank

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. The product development model treats all startups like they are in an Existing Market – an established market with known customers. Handspring’s customers understood what a Personal Digital Assistant was. Customers want to do a “job&#.

Top 120 Startup Posts for 2010

SoCal CTO

Some really great stuff in 2010 that aims to help startups around product, technology, business models, etc. 500 Hats , February 1, 2010 When to Use Facebook Connect – Twitter Oauth – Google Friend Connect for Authentication? Steve Blank , January 25, 2010 10 Tips for Adding Game Mechanics to a Non-Gaming Service - ReadWriteStart , September 21, 2010 Startups & VCs: Learn How to Design, Market, & Eat Your Own. -

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Customer Development Funnel Image v.4

Market by Numbers

Market By Numbers on Twitter | Entries RSS | Comments RSS Market By Numbers High-Tech Marketing and Customer Development Home What is Customer Development? Services Marketing Help Downloads Contact Log In Customer Development Funnel Image v.4

Why Pioneers Have Arrows In Their Backs

Steve Blank

First to develop or patent an idea. Implicit Customer Discovery and Validation in Fast Followers. First Movers tend to launch without really fully understanding customer problems or the product features that solve those problems.

Death By Competitive Analysis

Steve Blank

Trading emails with a startup CEO building an iPhone app, I asked him why potential customers would buy his product. Get to work and add all of these for first customer ship.”. Product development salutes and gets to work building the product. Where Are the Customers?

No Accounting For Startups

Steve Blank

As a founder you are testing a series of hypotheses about all the pieces of the business model: Who are the customers/users? For web startups, this is when the cost of customer acquisition is less than the lifetime value of that customer. Customer Acquisition.

The Manual-First Startup

Vinicius Vacanti

It was February 2010. Can really wow your potential customers. When you do things manually, you can try different things that really wow the customer and see which ones are worth trying to scale. Customer doesn’t know how your product works behind the scenes.

How Our Tech Startup Succeeded Without the Tech

Vinicius Vacanti

It was February 2010. Can really wow your potential customers. When you do things manually, you can try different things that really wow the customer and see which ones are worth trying to scale. Customer doesn’t know how your product works behind the scenes.

Hacking For Defense In Silicon Valley

Steve Blank

In a major break from the past, where the military designed all its own weapons, 10,000 scientists and engineers from academia worked in civilian-run weapons labs (most headquartered in universities) in an organization called the Office of Scientific Research and Development (OSRD).

Strategy is Not a To Do List

Steve Blank

They were deep into Customer Discovery and presented a ton of customer data on the validity of their initial hypothesis – target customers, pricing, stickiness, etc. Wait a minute, what about the rest of Customer Development ? Aren’t you going to validate your hypotheses by first getting some customers?”. Now I was confused, and I asked, “Well what do you guys believe – Customer Development or launch on a schedule?”

My experiments in lean pricing

Venture Hacks

If you’ve followed a customer development process, your MVP should address the top 3 problems customers have identified as important and it should do it well. Steve Blank bakes price exploration right into the initial customer interviews.

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What’s A Startup? First Principles.

Steve Blank

A business model diagram also shows how the product gets distributed to your customers and how money flows back into your company. Your job as a founder is to quickly validate whether the model is correct by seeing if customers behave as your model predicts.

Customer Development: Past, Present, Future

Steve Blank

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.

Entrepreneurs are Everywhere Show No. 35: Jessica Mah and Peggy Burke

Steve Blank

Jessica Mah started InDinero in 2010 to help entrepreneurs with their accounting and tax needs after going through the same challenges with her own businesses. I went to a customer’s office and I watched him use my software. Filed under: Customer Development , SiriusXM Radio Show.

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

Steve Blank

Berkeley were heavily funded to develop Cold War weapon systems. Starting in the 1950’s, Stanford’s engineering department became “outward facing” and developed a culture of spinouts and active faculty support and participation in the first wave of Silicon Valley startups. At the same time Berkeley was also developing Cold War weapons systems. Traction and evidence from customers were what investors were looking for – even in “slow” sectors like healthcare and energy.

Lessons Learned Launching a Lean Startup Accelerator

Instigator Blog

I believe it’s one of the first of its kind, with a very heavy focus on customer development and a rigorous Lean Startup process. I co-founded Year One Labs with three partners ( Raymond Luk , Alistair Croll and Ian Rae ) in April 2010 and launched officially in September of that year.

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Why Do Market Segments Matter?

Market by Numbers

Market By Numbers on Twitter | Entries RSS | Comments RSS Market By Numbers High-Tech Marketing and Customer Development Home What is Customer Development? By brantcooper , July 19, 2010 1:23 pm What are Market Segments Really?

Who Dares Wins – The 2nd Annual International Business Model Competition

Steve Blank

This makes sense in a company where your customers, channel and competition are known. Yet year after year, decade after decade, VC’s would watch as no startup business plan survived first contact with customers. Business Plan vs. Business Model + Customer Development.

No Business Plan Survives First Contact With A Customer – The 5.2 billion dollar mistake.

Steve Blank

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. No Business Plan Survives First Contact With A Customer.

You Can Outsource Customer Development, You Can't Outsource Learning

Market by Numbers

Market By Numbers on Twitter | Entries RSS | Comments RSS Market By Numbers High-Tech Marketing and Customer Development Home What is Customer Development? There are times when customers are going to tell you something that you don’t want to hear.

Lessons Learned: Customer Development Engineering

Startup Lessons Learned

Lessons Learned by Eric Ries Sunday, September 7, 2008 Customer Development Engineering Yesterday, I had the opportunity to guest lecture again in Steve Blank s entrepreneurship class at the Berkeley-Columbia executive MBA program. In addition to presenting the IMVU case, we tried for the first time to do an overview of a software engineering methodology that integrates practices from agile software development with Steves method of Customer Development.

The Customer Development Manifesto: Reasons for the Revolution.

Steve Blank

After 20 years of working in startups, I decided to take a step back and look at the product development model I had been following and see why it usually failed to provide useful guidance in activities outside the building – sales, marketing and business development. Every startup has some methodology for product development, launch and life-cycle management. So what’s wrong the product development model? Product Development Diagram 1.

Make No Little Plans – Defining the Scalable Startup

Steve Blank

Now with customers and early revenue, it was out raising its first round of venture money. They used Customer and Agile development to search for a scalable and repeatable business model to become a large company. And the founders must have a reality distortion field to convince investors their vision is not a hallucination and to hire employees and acquire early customers. Customer and Agile development to find the business model. Make no little plans.

It Must Be A Marketing Problem

Steve Blank

The Customer Development process is the way startups quickly iterate and test each element of their business model , reducing customer and market risk. The first step of Customer Development is called Customer Discovery. In Discovery startups take all their hypotheses about the business model: product, market, customers, channel, etc. outside the building and test them in front of customers.