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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.
Finally, I’ll write about 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. Three to six months after first customer ship, if Sales starts missing its numbers, the board gets concerned.
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. Over its lifetime a Lean Startup may spend less money than a traditional startup. Lets see why.
Lessons Learned by Eric Ries Saturday, November 8, 2008 What is customerdevelopment? But too often when its time to think about customers, marketing, positioning, or PR, we delegate it to "marketroids" or "suits." Many of us are not accustomed to thinking about markets or customers in a disciplined way. Heres the catch.
A startup is not just about the idea, it’s about testing and then implementing the idea. I was driving home from the BIO conference in San Diego last month and had lots of time for a phone call with Dave, an ex student and now a founder who wanted to update me on his Customer Discovery progress. In fact, it wasn’t even a startup.
Reading the NY Times article “ Jeffrey Katzenberg Raises $1 Billion for Short-Form Video Venture, ” I realized it was time for a new startup heuristic: the amount of customer discovery and product-market fit you need to find is inversely proportional to the amount and availability of risk capital. He just hired Meg Whitman.
I believe it is the best introduction to CustomerDevelopment you can buy. As all of you know, Steve Blank is the progenitor of CustomerDevelopment and author of The Four Steps to the Epiphany. Four Steps primarily centers its stories and case studies on B2B hardware and software startups.
How do you figure out what’s the right mix of skills for the co-founders of your startup? I was having breakfast with Radhika, an ex-grad student of mine who wanted to share her Customer Discovery progress for her consumer hardware startup. Who can I hire later? I told Radhika this is a perennial question for startups.
It’s your startup, so you can give early partners any title you want, but be aware of potential investor and peer implications. VCs and Angel investors like to see a startup that is running lean and mean, with no more than three or four of the conventional C-level or VP titles. Chief Sales Officer (VP Sales). Chief Brand Officer.
Most startups fail. The product or website (be it software, e-commerce, or a service) might be awesome , but if it puts itself in front of the wrong market, or packages itself so the right market can’t figure out why it’s awesome, the startup will fail. Same goes for e-commerce, SaaS or any startup really.
Oh, and we had no installed customer base. I had hired the VP of marketing from a potential software partner who was responsible to get all this 3 rd party software on our computer. In reality we hadn’t gotten any closer to our goal than the day we hired him. We had accomplished nothing – zero, zilch, nada.
He hired an operating exec as the CEO a few years ago. With a few more questions I learned that the code base, which had now grown large, still had vestiges of the original exploratory code written back in the early days when the company was in the discovery phase of CustomerDevelopment.
It’s your startup, so you can give early partners any title you want, but be aware of potential investor and peer implications. VCs and angel investors like to see a startup that is running lean and mean, with no more than three or four of the conventional C-level or VP titles. Chief Sales Officer (VP Sales). Chief Brand Officer.
I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. This left an open playing field for Chinese software startups as they “copy to China” existing U.S. If you’re a software startup competing in China, the words that come to mind are “ruthless and relentless.”
The CustomerDevelopment process is the way startups quickly iterate and test each element of their business model , reducing customer and market risk. The first step of CustomerDevelopment is called Customer Discovery. outside the building and test them in front of customers.
This is part of my ongoing series of posts and I need to file this one under both Raising Venture Capital and Startup Advice. The last couple of years has also seen the huge initial success of Ycombinator, the Lean Startup and many other product driven approaches to going to market. Why do VC’s care about these years?
Lessons Learned by Eric Ries Monday, September 8, 2008 The lean startup Ive been thinking for some time about a term that could encapsulate trends that are changing the startup landscape. After some trial and error, Ive settled on the Lean Startup. Of course, many startups are capital efficient and generally frugal.
Over the last decade we assumed that once we found repeatable methodologies (Agile and CustomerDevelopment , Business Model Design) to build early stage ventures, entrepreneurship would become a “science,” and anyone could do it. it is an art) and again hired professionals. Some men see things as they are and ask why.
While the last post was titled “ You Know You’re Getting Close to Your Customers When They Offer You a Job “, this post should probably be titled, “You Know You’re Getting Close to Your Customers When You Offer Them a Job.&# These hires were definitely not your standard marketing types.
I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. Of all the Chinese government programs, the Torch Program is the one program that kick-started Chinese high-tech innovation and startups. In these series of 5 posts, I thought I’d share what I learned in China.
VC’s were no longer insisting that startups spend faster, and “swing for the fences”. It was a nuclear winter for startup capital.” ” Steve Blank, “Is the lean startup dead?” ” The Lean Startup movement started out of necessity. Agile Development: launch an MVP early and iterate quickly.
August was a slow month in terms of traffic and I was away for a lot of the month, but there were some really great posts at the intersection of startups, technology, product and being a Startup CTO. He blogs to 10,000 web entrepreneurs at Software by Rob and co-hosts the podcast Startups for the Rest of Us. The Dry Run.
Guest post by Lisa Regan, writer for The Lean Startup Conference The Lean Startup Conference is next week--and now that we can step back and see all the speakers and mentors, we have to say: Wow. Ben Horowitz ’s book The Hard Thing About Hard Things is driving the conversation around startup management this year.
Berkeley Haas Business School was courageous enough to give me a forum teach the CustomerDevelopment Methodology. In ten years, from the early 1950′s to the early 1960′s, the valley went through a hiring frenzy as jobs in microwave companies went from 700 to 7,000.
I presented to 1,000’s of entrepreneurs, talked to 17 startups, gave 12 lectures, had 9 interviews, chatted with 8 VC’s, sat on 4 panels, talked policy with 2 government ministers, 2 members of parliament, 1 head of a public pension fund and was in 1 TV-documentary. This extends to sharing among startups.
I spent the month of September lecturing, and interacting with (literally) thousands of entrepreneurs in two emerging startup markets, Finland and Russia. What I found in Finland was: a whole lot of smart, passionate entrepreneurs who want to build a startup hub in Helsinki. Startup Blog: Arctic Startup.
Lessons Learned by Eric Ries Monday, January 19, 2009 Lean hiring tips In preparing for the strategy series panel this week, I have been doing some thinking about costs. Fundamentally, lean startups do more with less, because they systematically find and eliminate waste that slows down value creation.
You’re Hired, You’re Fired. My first job in Silicon Valley: I was hired as a lab technician at ESL to support the training department. The manager of the training department who hired you wasn’t authorized to do so – and he’s been fired. Could I work here if he wanted to hire me?&#
I continue to collect great content that is the intersection of startups, products, online and technology. Equity-Only CTO and Equity-Only Developers - SoCal CTO , November 1, 2010 I had a recent email dialog with the founder of a company looking for a CTO for their startup. Was it a Startup Founder Developer Gap ?
It’s your startup, so you can give early partners any title you want, but be aware of potential investor and peer implications. VCs and Angel investors like to see a startup that is running lean and mean, with no more than three or four of the conventional C-level or VP titles. Chief Sales Officer (VP Sales). Chief Brand Officer.
Successful pinball companies didn’t hire Hollywood talent. 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. I know what’s great and what’s not.
I was having coffee with the CEO of a new startup, listening to her puzzle through how to communicate to potential customers. Founders ask me all the time whether they should hire a PR agency. Customer Discovery Never Stops. Hiring a PR agency too early is a sign that the CEO is treating this as someone else’s problem.
The Energy Storage division is acting like a startup, and Prescott Logan its General Manager, has lived up to the charter. He’s as good as any startup CEO in Silicon Valley. They’ve tested their hypotheses with literally hundreds of customer interviews on every continent in the world. You couldn’t be more wrong.
Lessons Learned by Eric Ries Tuesday, September 30, 2008 What does a startup CTO actually do? When Ive asked mentors of mine who have worked in big companies about the role of the CTO, they usually talk about the importance of being the external face of the companys technology platform; an evangelist to developers, customers, and employees.
I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. This left an open playing field for Chinese software startups as they “copy to China” existing U.S. If you’re a software startup competing in China, the words that come to mind are “ruthless and relentless.”
. ———————————————– Two decades ago, Steve Blank completely changed the course and fortunes of a Stanford spinout startup called Immersion. Regardless if they take startup path, students gain invaluable skills. Present at the Creation.
If these sound like reasonable answers to you, and you are in a startup/small company, update your resume. Most startups put together a corporate mission statement because the CEO remembered seeing one at their last job, or the investors said they needed one. We hired union laborers to do that.
Startups and Sales If you read this post you can come away with the impression that every startup with a direct salesforce needs a consultative sales team. The answer depends on your answer to two questions: which step in the CustomerDevelopment process are you on? what Market Type is your startup?
Zilog Zilog was my first Silicon Valley company where you could utter the customer’s name in public. I was hired as a training instructor to teach microprocessor system design for the existing Z-80 family and to write a new course for Zilog’s soon to be launched 16-bit processor, the Z-8000.
I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. Of all the Chinese government programs, the Torch Program is the one program that kick-started Chinese high-tech innovation and startups. In these series of 5 posts, I thought I’d share what I learned in China.
Lessons Learned by Eric Ries Saturday, November 29, 2008 The ABCDEFs of conducting a technical interview I am incredibly proud of the people I have hired over the course of my career. This second objective plays no small part in allowing you to hire the best. Hiring decisions are among the most difficult, and the most critical.
Master of 500 Hats: Startup Metrics for Pirates (SeedCamp 2008, London) This presentation should be required reading for anyone creating a startup with an online service component. In my opinion, every startup needs to "pick a major" among these three drivers of growth. The Lean Startup Intensive is tomorrow at Web 2.0.
He’s now run several Lean LaunchPad classes and has seen a ton of healthcare startups. Here’s his advice for startups in this space. Over the past couple of years as Director of Innovation for Intermountain Healthcare I’ve mentored and worked with many Healthcare-focused startups. For a proof of concept or pilot this may be OK.
Lessons Learned by Eric Ries Wednesday, December 16, 2009 What is Lean about the Lean Startup? That foundational idea, so clearly articulated in books like Lean Thinking, is what originally led me to start using the term lean startup. The following is a guest post for Startup Lessons Learned by the legendary Kent Beck.
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