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Times Square Strategy Session – Web Startups and Customer Development

Steve Blank

In it, I got asked a question I often hear: “What if we have a web-based business that doesn’t have revenue or paying customers? What metrics do we use to see if we learned enough in Customer Discovery ? And without revenue how do we know if we achieved product/market fit to exit Customer Validation?”

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Can You Trust Any vc's Under 40?

Steve Blank

Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability. They taught you about customers, markets and profits.

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SuperMac War Story 6: Building The Killer Team – Mission, Intent.

Steve Blank

And it was going to mention the two words that SuperMac marketing needed to live and breathe: revenue and profit. And the results weren’t the traditional PR metrics of number of articles or inches of ink. We will reach 35% market share in year one of sales with a headcount of twenty people, spending less than $4,000,000.

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He's Only in Field Service

Steve Blank

Unfortunately most startups learn this by going through the “Fire the first Sales VP&# drill: You start your company with a list of potential customers reading like a “who’s who&# of whatever vertical market you’re in (or the Fortune 1000 list.) Your board nods sagely at your target customer list. What happened?

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SuperMac War Story 9: Sales, Not Awards « Steve Blank

Steve Blank

And the final lesson was that we were keeping score on our packaging with the wrong metrics – it wasn’t about awards, it was about sales in the retail channel. We had been outsourcing an important part of our demand creation strategy – packaging – to an outside agency without having the expertise to judge or manage the results.

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Killing Innovation with Corner Cases and Consensus « Steve Blank

Steve Blank

Corner Cases and Consensus are For Large Companies Carefully considering each and every possible outcome before you proceed with a decision is something large companies with large revenues, shareholders and employees need to do. Unlike large corporations, startup meetings are not about achieving consensus for every objection raised.

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Cracking The Code: Getting through the downturn: a few thoughts.

Cracking the Code

The fact that SaaS valuations are being more affected by the downturn than the Nasdaq can be surprising given the supposed resiliency of the SaaS model (recurring revenues) but it translates the public investors belief that SMB software spend is going to be hit very hard by this recession. Rethink vertical segmentation: Healthcare?