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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. 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.
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.
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.
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.
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. It’s what my textbook on CustomerDevelopment describes. I was an idiot. Berkeley and at Stanford.
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.
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.
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.
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 (..)
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.
I was between my 7th and 8th and final startup; licking my wounds from Rocket Science, the company I had cratered as my first and last attempt as a startup CEO. 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.
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.
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 (..)
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.
Reply steveblank , on March 28, 2009 at 7:27 am Said: Denis, Over time the blogs tagged under the “customerdevelopment&# category will build up a narrative of illustrative stories of how customerdevelopment evolved in practice. What part of this blog should I read if I am also reading the book?
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.
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 (..)
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. It starts at ~40:30 in the video.
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. Can I buy you lunch to share it with you? &# Yes, I’m serious. So the ask is made — shall it be given?
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 (..)
For example, Friendster was famously vertically partitioned at one time in its growth curve. I normally recommend you just store this directory on your master database, but you could use a standalone vertical shard (or even a key-based partition!) This type of vertical partitioning sharding scheme wont work in most cases.
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. We all know how that ends up.
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. However, for the Web 2.0
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. In contrast to simply executing your business plan, the CustomerDevelopment process is built on low-cost and continuous learning and iterating.
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.
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.
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.
Second, to share how my how my thinking about entrepreneurship as a distinct practice and how CustomerDevelopment as one of its central components has evolved over the last decade. And with the 30-year statute of limitations now passed, stories about who I worked for (and the names of agencies.).
I have a question though- do you think that most content metrics (the ebook example you mentioned) should be developed by the "author" to target their specific data, or do you think there are opportunities for a new business vertical that give these tools directly to the creator. August 24, 2009 2:17 PM Norbert Mocsnik said.
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.
Choose to expand vertically or horizontally. It was a tough decision, as we spent a lot of work researching, developing offers, and producing our messaging. There’s plenty of pie to go around. But, more importantly, your competitors are continually setting new standards for working. The biggest mistake was ignoring our own advice.
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.
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.
This is not a new technique, but you may recognize it as the foundation of Customer Discovery and CustomerDevelopment. I''m talking about the power of a happy, reference customer. First, let''s be clear what it means to be a reference customer. Another is to expand geographically in this manner (e.g.
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.
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