Steve Blank

MARCH 25, 2009

We knew from back-of-the-envelope calculations that I would need 3 times the combined marketing and sales budgets of the incumbents for a head-on assault. (I The 3:1 Lanchester Laws said I would need $60M in marketing and sales spending to win. If we tried to match them on their playing field we’d never catch up.

Silicon Valley 141

Silicon Valley Marketing RSS California 141

The Equity Kicker

DECEMBER 17, 2015

In 1982 Victoria’s Secret was a four store chain headed for bankruptcy. Leslie Wexner bought the company and sales now top $7bn, with analysts seeing $20bn in global potential. In the speciality retail world they have market leading sales per square foot and profits.

Customer 60

Customer Bankruptcy Customer Development Global 60

Steve Blank

OCTOBER 1, 2009

Top management was trying to coordinate all of the operating details (sales, manufacturing, distribution and marketing,) across all the divisions and the company almost went bankrupt that year when poor planning led to excess inventory (with unsold cars piling up at dealers and the company running out of cash.)

Silicon Valley 156

Silicon Valley United States RSS Customer Development 156

Steve Blank

MAY 15, 2009

This happened to us at SuperMac when our sales skyrocketed. Lets Fix Everything that Was Broken At SuperMac we were excited to finally get out of the crummy tiltup we had occupied since the company emerged from bankruptcy. One of the signs of success is when you outgrow your last cramped quarters and can afford a “real” building.

Silicon Valley 205

Silicon Valley RSS Lean Agile 205

Steve Blank

NOVEMBER 1, 2010

But nine months after the first call was made in 1998, Iridium was in Chapter 11 bankruptcy. 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.

Business Plan 335

Business Plan Customer Business Model Customer Development 335

Steve Blank

APRIL 16, 2009

Some engineers were insulted that we were going to slow down their board and sales was convinced that within days of the board hitting the street we would have a black market in chips to speed up the $699 boards and turn them into $3,999 ones. This requires deep customer and competitive knowledge. No one believed it would work.

Silicon Valley 134

Silicon Valley Product RSS Engineer 134

grasshopperherder.com

SEPTEMBER 24, 2011

BTW: putting your staff into a separate corporate entity and then forcing bankruptcy is a time honored way of getting rid of undesirable employees without having to pay their severance packages.). Top 3 Ways to Fail at Customer Development. Personas for Customer Development. Customer Development (27).

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41