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Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Product Development – Getting Funded as The Goal In a traditional product development model, entrepreneurs come up with an idea or concept, write a business plan and try to get funding to bring that idea to fruition.
This post describes how following the traditional product development can lead to a “startup death spiral.&# In the next posts that follow, I’ll describe how this model’s failures led to the CustomerDevelopment Model – offering a new way to approach startup sales and marketing activities.
Berkeley Haas Business School was courageous enough to give me a forum teach the CustomerDevelopment Methodology. There is a earlier phase *prior to Vacuum Tubes* in Santa Clara Valley tech history as well involving Federal Telegraph and “Federal-Poulsen Arc Converter&# radio transmitter. Who would have known?
Long before there was the Lean Startup, Business Model Canvas or CustomerDevelopment there was a guy in Santa Barbara California who had already figured it out. I want to tell you a story about how a team pivoted and succeeded by synchronizing product and customerdevelopment. Filed under: CustomerDevelopment.
Once he was on board, I sat down with him on a weekly basis to review our progress with our list of software vendors. Reply Daily Review #21 | The Queue Blog , on November 9, 2009 at 8:06 pm Said: [.] Think Different I still remember the day I discovered that I thought about progress differently than other people.
Posted on September 14, 2009 by steveblank Over the last 30 years Wall Street’s appetite for technology stocks have changed radically – swinging between unbridled enthusiasm to believing they’re all toxic. Tech acquisitions went crazy at the same time the IPO market did. 3) invest in and take equity stakes in exchange for capital.
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. Are These Your Slides?
I continue to collect great content that is the intersection of startups, products, online and technology. The United States is now a debtor nation to China and that the bill is about to come due. These are probably the two sites where I've posted the most reviews. One out of ten of Americans are out of work.
some came from our customer service, some were to improve performance / scalability from tech ops, some were bug fixes, etc.) They attended property management association meetings in Oregon outside of the technology echo chamber of California to get a sense for people’s daily problems. Back then it seemed foreign.
When I went through their financials as part of my duediligence I realized that if they ditched their low margin disk drive products, it wouldn’t take much to make them a profitable company. They had an existing distribution channel and their dealers and customers thought they knew who the company was and what it stood for.
Convergent Technologies When I was in my 20’s I worked at Convergent Technologies , a company that was proud to be known as the “Marine Corps of Silicon Valley.” I had thrown myself into a startup because work was an exciting technical challenge with a fixed set of end points and rewards. The Adventure of a Lifetime.
Zilog Zilog was my first Silicon Valley company where you could utter the customer’s name in public. Zilog produced one of the first 8-bit microprocessors , the Z-80 (competing at the time with Intel’s 8080 , Motorola 6800, and MOS Technology 6502.) The bill had come due. How did I miss that?
competitive analyses, channel and customer collateral (white papers, data sheets, product reviews), customer surveys, and market requirements documents. And our Director of Technical Marketing was superb at understanding customer needs and communicating them to engineering. It will cost you your job.” It became [.]
It took me 8 startups and 21 years to get it right, (and one can argue success was due to the Internet bubble rather then any brilliance.) This mantra of talking to customers and iterating the product is the basis of the Lean Startup Methodology that Eric Ries has been evangelizing and I’ve been teaching at U.C. I was an idiot.
The presentation didn’t have a single word about Lean Startups or CustomerDevelopment. Reply Dan Hodgins , on November 13, 2009 at 1:12 am Said: Hi Steve, Just listened to your “Retooling Early Stage Development&# for about the 10th time tonight as I was cleaning my room. Lesson learned, review how each action [.]
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. Their national technical means of verification made the world a safer place and hastened the end of the Soviet Union and the Cold War.)
Meanwhile our company was pouring an enormous amount of dollars into building tools and video compression technology, while also hiring a lot of high-priced Hollywood talent like art directors, and script and story editors. Was my response to stop development of the games? Bring in some outside professionals to review our progress?
What reviews did they trust? Yet our customers said they got their company and product information from only three publications: MacWorld, MacUser and MacWeek. They said the product reviews in these publications were by far the biggest influence on which card to buy. (This made our PR problem manageable and focused.
This class is built on conducting in-person of interviews with customers/ beneficiaries and stakeholders, but due to the pandemic, teams now had to do all their customer discovery via a computer screen. How would customer interviews work via video? This would seem to be a fatal stake through the heart of the class.
TLDR: Brant Cooper and Patrick Vlaskovits , authors of The Entrepreneur's Guide to CustomerDevelopment are back with a new book called The Lean Entrepreneur. It took the idea of CustomerDevelopment and made it accessible to a whole new audience. Illustrations by FAKEGRIMLOCK. You can pre-order it starting today.
We had thought really hard about “ market type ” and decided to reposition the company from a technology provider to a solutions provider. Tell Me How to Find You But having benchmarks in hand that showed us as the winner did us no good unless all our potential customers could see them.
As Peter began to speak extemporaneously our mouths slowly fell open as he described the video game market, its size, its demographics, the state of the technology, and the state of games. You’re in a “ hits-based &# entertainment business like movies or music rather than a product business like traditional high-tech. -
—————- The next piece of the Secret History of Silicon Valley puzzle came together when Tom Byers , Tina Selig and Mark Leslie invited me to teach entrepreneurship in the Stanford Technology Ventures Program ( STVP ) in Stanford’s School of Engineering. My office is in the Terman Engineering Building.
This year, with the kids grown, their choice was to fly up from Southern California and spend the holidays at our ranch. So no post today on entrepreneurship, Secret History of Silicon Valley, CustomerDevelopment, Lean Startups, etc. California, where even the rabbits are bigger than life!
In my last post I described my approach to one of the three classes I teach at Stanford in the engineering school: Fundamentals of Technology Entrepreneurship. A partner allows me the flexibility to miss a session or two (my job as a California Coastal Commissioner meets three days every month up and down the coast of California.)
It said, “teach us to number our days that we gain a heart of wisdom “ Since then I’ve had a series of interesting careers: technician in the Air Force, tech writer, marketer, entrepreneur, CEO and now educator and mentor. While most visionaries turn out to be hallucinating, the few who are right push the human race further along.
And the odds in your favor are even higher, as most of your peers wouldn’t even get into the game due to some unspoken belief that in a meritocracy, good things will come to those who wait. While MBA’s have a ton of useful skills, what they don’t have is what most marketing departments lack – customer insight.
Because then you’d miss out on: Whether it’s better experience to build a complete, tiny startup or to do more in-depth customerdevelopment for a meatier problem. Bob: We have a technical term for the person that was telling you this advice. And the technical term is, fool. It’s another trajectory.
Follow the Leader At the conference I attended a bunch of technical sessions, and got lost when the speaker got past, “My name is xxx.” Ardent 3: Supercomputer Porn « Steve Blank (tags: customer-development product-management startup) [.] Isn’t theory fun? Gracias for another great read Steve!
Stanford had a CustomerDevelopment loop going on inside their own lab. The discoveries in tube and circuit research suggested new electronic intelligence and countermeasure techniques and systems; in turn the needs of the Applied Lab pushed tube and circuit development. The future of the valley was clear – microwaves.
VC Cafe covers early stage Israeli and European tech & mobile startups. Every startup faces multiple choices and decisions when it comes to technology. Steve Blank on Lean CustomerDevelopment. Customer service. Girls in Tech. Ad Serving Technology. Analytics review â?? Seed Startups.
5 Lessons from 150 startup pitches - A Smart Bear: Startups and Marketing for Geeks , July 11, 2010 I just reviewed several hundred startup pitches for Capital Factory. California Milk Processor Board) – 1993. Between this blog and reviewing applications to Capital Factory I see hundreds of pitches a year. Customer Care Today.
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