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CustomerDevelopment is all about gathering a list of what features customers want by talking to them, surveying them, or running “focus groups.” Gathering feature requests from customers is not what marketing should be doing in a startup. And it’s certainly not CustomerDevelopment.
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. For example, complex new semiconductor architectures, (i.e. How would that change my company strategy?
The relevant part starts about 4:30 into the video (wait for it to download.) luck… and as one of Steve Blank’s posts today mentioned, you can’t test hypotheses from within your building. luck… and as one of Steve Blank’s posts today mentioned, you can’t test hypotheses from within your building.
Verticals Are Different I began to realize that entrepreneurs (and their professors) act like every vertical market and industry has the same set of rules. So the first heuristic is: do not assume the startup rules are the same for all vertical markets. Just for discussion, the markets I chose were: Web 2.0,
Other advisors provided marketing with industry-specific advice in our initial vertical markets (computational fluid dynamics, computational chemistry, finite element analysis, and petroleum engineering). Some of these advisors from the academic community would work with our of VP of Engineering and help us solve specific technical problems.
For those of you who have been following the discussion, a Lean Startup is Eric Ries ’s description of the intersection of CustomerDevelopment , Agile Development and if available, open platforms and open source. The CustomerDevelopment process (and the Lean Startup) is one way to do that.
CustomerDevelopment ) to help you quickly recognize and reverse any incorrect decisions. CustomerDevelopment) to help you quickly recognize and reverse any incorrect decisions.&# My advice was to start a policy of making reversible decisions before anyone left his office or before a meeting ended.
CustomerDevelopment 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. See part one for the first time it happened. This time it was serious. Good stuff too.
Filed under: CustomerDevelopment , Venture Capital | Tagged: Entrepreneurs « CustomerDevelopment Manifesto: Market Type (part 4) CustomerDevelopment Manifesto: The Path of Warriors and Winners (part 5) » 16 Responses Jon Ziskind , on September 14, 2009 at 9:19 am Said: Steve – Great post and really great advice.
However, you will be dealing with almost daily change, (new customer feedback/insights from a CustomerDevelopment process and technical roadblocks ,) as the company searches for a repeatable and scalable business model. This means you still need to have a resilient personality, and be agile. You’re not joining a big company.
No internet, no blogs, no books on startups, no entrepreneurship departments in universities, etc. CustomerDevelopment/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.
I feel that I’ve derived as much value from this post as I would from reading 2 or 3 lengthy books on the topic. on April 10, 2009 at 6:58 am Said: Amazing blog. steve Joshua , on January 5, 2010 at 3:19 pm Said: Fantastic entry, thanks very much Steve. Reply Leave a Reply Click here to cancel reply. Order Here. Now In Print!
Lessons Learned No one will tell you to work fewer hours You need to be responsible for your own health and happiness Burnout sneaks up on you Burnout is self-induced. You created it and own it.
The answer depends on your answer to two questions: which step in the CustomerDevelopment process are you on? CustomerDevelopment and Selling Strategy If you’ve just started your company you are in customer discovery. Hiring a VP of Sales in customer discovery typically sets a startup back.
Filed under: CustomerDevelopment , Marketing , SuperMac , Technology | Tagged: Steve Blank , SuperMac « Love/Hate Business Plan Competitions Gravity Will be Turned Off » 17 Responses EricS , on May 11, 2009 at 11:05 am Said: I loved my Spigot. It was fun watching it happen.
Home Books for Startups Secret History-Bibliography Steve Blank Startup Resources Steve Blank Entries RSS | Comments RSS Categories Air Force (9) Ardent (9) Big Companies versus Startups: Durant versus Sloan (29) California Coastal Commission (3) Conservation (2) Convergent Technologies (1) CustomerDevelopment (98) CustomerDevelopment Manifesto (..)
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.”
So no post today on entrepreneurship, Secret History of Silicon Valley, CustomerDevelopment, Lean Startups, etc. Our friends who run the state park surrounding our ranch will join all of us for Thanksgiving dinner. Just a reflection on my family and hopes for our children.
Home Books for Startups Secret History-Bibliography Steve Blank Startup Resources Steve Blank Entries RSS | Comments RSS Categories Air Force (9) Ardent (9) Big Companies versus Startups: Durant versus Sloan (29) California Coastal Commission (3) Conservation (2) Convergent Technologies (1) CustomerDevelopment (98) CustomerDevelopment Manifesto (..)
thanks Reply Denis , on March 27, 2009 at 7:05 pm Said: Steve, is this blog in addition to the book or instead of it? What part of this blog should I read if I am also reading the book? mahmoud , on March 28, 2009 at 1:53 am Said: Steve, I want to buy your book but its not available on amazon.ca
It is pity that I can’t get hold of your book because it’s not available in a local bookstore (in the Philippines). Reply steveblank , on March 23, 2009 at 12:11 am Said: Alvin, you can buy the book online at [link] They ship to the Philippines. i have your book, but stopped at the 4th chapter.
The Times Square Strategy discussion I had with Eric Ries , was still top of mind, so instead of my standard CustomerDevelopment lecture , I offered my thoughts on: the origin of CustomerDevelopment, where we are today, and where does CustomerDevelopment go, and how you can help get it there.
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.
If you are a practitioner of CustomerDevelopment, ESL was doing it before most us were born. 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. If you’re an entrepreneur, ESL is the most important company you’ve never heard of.
This lack of information meant that every World War II movie or book that had airplanes on bombing missions in it was wrong. I just put Guerlac’s and Eckert/Schubert’s books in my “to read&# pile. Every one of them. (To To someone who had grown up with reruns of WWII war movies on TV, this was a shock.)
This post describes a solution – the CustomerDevelopment 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.
I’ve built my company using the CustomerDevelopment Model from Day One. I recently completed the Validation step (less the industry analyst presentations) and am ready to move on to Customer Creation. Reading a few of the basic books on selling and influence (just google for a list) 2. Asking is NOT easy, IMHO.
I shared in this post that our research agenda is tracking four large software and services markets – vertical “edge” applications, applications for fast-growing global economies, customdevelopment using low and no-code tools and Generative and other AI. The interest.
It’s a challenge to keep the play-book up-to-date as we are doing it. It made sense, but there does have to be a central road map the allows for evolution. I need to keep focused on driving the ball down the field. With all that said – startup is the best job in the world!! Thanks again.
Not being able to hear negative customer input is an extremely bad idea. Out of the Ashes A few of the key tenets of CustomerDevelopment , came from the ashes. era&# , but really interested in your take on these “free&# models through the prism of CustomerDevelopment.
The CustomerDevelopment talk can be seen here. That said I will be giving a CustomerDevelopment talk at TIECON , Saturday May 16th, 1:30 thanks for asking. steve CustomerDevelopment is Hard. Thanks to Dave McClure and Leonard Speiser for the opportunity to speak. Part 1 Part 2 Part 3 The slides are here.
I place them roughly in this order: Movies > Television > Books > Music > Magazines > Radio > Newspapers Each industry is watching the one in front of it sink into the quicksand. When I reviewed a recent product developmentbook, it immediately shot up to Amazon sales rank 300. My blog has over 14000 subscribers, for example.
Reducing Risk – Simulation versus CustomerDevelopment If you remember the first part of this discussion, startups face two types of risk; invention risk and/or customer/market risk. The CustomerDevelopment Process I teach and write about is designed to do just that.
In the last three posts, we drew the relationship of market risk and invention risk with vertical markets and pointed out verticals where customerdevelopment would be useful. Ultimately you want to see if you can find customers and a market for the product as specified – as early as possible.
Similarly, customer introductions are invaluable in the early days, but become less valuable once a company has a fully-formed go to market function.”. A well-organized library of best practices for founders in your vertical, which you can share as appropriate. Organize events in your vertical. CustomerDevelopment.
Back in 2016, I read a book called Sprint by Jake Knapp, founder of Google Ventures. As advocated in the book, I felt the idea of using restraint would help me quickly execute on new ideas. Choose to expand vertically or horizontally. And so, the concept for a digital PR service was born. There’s plenty of pie to go around.
Lean Methodology consists of three tools designed for entrepreneurs building new ventures: The Business Model Canvas – to write down all the hypotheses about a new business; CustomerDevelopment – a process for testing those hypotheses outside the building; Agile Engineering – to rapidly build minimal viable products to test product/market fit.
CustomerDevelopment This strategy of starting on faith, and quickly turning them into facts is the core of the CustomerDevelopment process. Employ customerdevelopment. Because at times facts may create cognitive dissonance with the beliefs that got you started and funded.
From the king of customerdevelopment, Steve Blank: [.] You don’t get grades for having resiliency, curiosity, agility, resourcefulness, pattern recognition and tenacity. You just get successful. Sometimes they just drop out and do their own thing. No one has to tell them to do that.
And you’d like me to do my talk on CustomerDevelopment and startups?” “No, we’re the other CIA.” On first glance it appears as if they are spending to much energy in the vertical portion of the jump, relative to the horizontal portion. Do you mean the Culinary Institute of America?
I was in New York last week with my class at Columbia University and several events made me realize that the CustomerDevelopment model needs to better describe its fit with web-based businesses. And without revenue how do we know if we achieved product/market fit to exit Customer Validation?” It’s an impressive portfolio.
As a contractor handling the “customer’s&# information, ESL went by the book with librarians inside the vaults and had strict document access and control procedures. In contrast, this site belonged to the “customer.&# They set their own rules about how documents were handled, and the safes were open to everyone.
Resegmentation means these startups are trying to lure some of the current or potential customers away from incumbents by either offering a lower cost product, or by offering features that appealed to a specific niche or subset of the existing users. Do you know the archetype of their customers? Me – “Have you used Company x’s product?
Filed under: CustomerDevelopment « Requiem For A Roommate 2 Responses steve , on October 21, 2010 at 7:05 am Said: what did Carl say at 1:12 ? BTW, the definition of entrepreneurship I describe at 2:50 into the video is described in detail in the post “ You’re Not a Real Entrepreneur.&#
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