Starting Up

      The Startup Process
    Customer Development
Product Development for Startups
The Startup Process




The Startup Process:
Turning ideas into products that customer will pay for
The Startup Process


• Product/Market fit

• How to get to product/market fit
The Startup Process
• Product/Market fit
   – Factors for startup success
       • Market
       • Team
       • Product

...
The Startup Process
• How to get to product/market fit
   – Multiple iterations

                      Observe       Orien...
The Startup Process
• Learn more
   – Marc Andreessen, “The only thing that matters”

   – Eric Ries, “Principles of Lean ...
Customer Development Process
       Iteration                          Execution




The Search for a Business           T...
Customer Development Process


• Customer Development Principles

• The Customer Development Process
Customer Development Process
• Customer Development Principles
   – Distinct phases of product & company growth

   – Lear...
Customer Development Process
• The Customer Development Process
                 Iteration                            Exec...
Customer Development Process
• The Customer Development Process - Customer Discovery
   – Principles
      • There are no ...
Customer Development Process
• The Customer Development Process - Customer Validation
   – Principles
      • Develop a re...
Customer Development Process
• The Customer Development Process - Customer Creation
   – Principles
      • Creation comes...
Customer Development Process
   • The Customer Development Process - Customer Creation
      – Customer Creation Activitie...
Customer Development Process
• The Customer Development Process - Company Building
   – Principles
      • Move from early...
Customer Development Process
• Learn more
   – Steve Blank, “The Four Steps to the Epiphany”

   – Steve Blank, “The Custo...
Product Development for Startups




Product Development for Startups:
Multiple iterations increase learning and flexibili...
Product Development for Startups


• Product Development for Startups

• Customer Development Engineering
Product Development for Startups
• Product Development for Startups
   – Known and unknown problems and solutions
        ...
Product Development for Startups
• Product Development for Startups
   – Known and unknown problems and solutions
        ...
Product Development for Startups
• Product Development for Startups
   – Known and unknown problems and solutions
        ...
Product Development for Startups
• Product Development for Startups
   – Development principles
      • Embrace change: Bu...
Product Development for Startups
• Customer Development Engineering
   – Product Development Cycle

                      ...
Product Development for Startups
• Customer Development Engineering
   – Customer Development Engineering Tactics
      • ...
Product Development for Startups
• Learn more
   – Eric Ries, “Lean Startups”

   – Eric Ries, “Customer Development Engin...
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Startup University - 3. Starting Up

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How to Start and Grow your Startup
3. Starting Up
-The Startup Process
-Customer Development
-Product Development

Published in: Technology, Business, Design

Startup University - 3. Starting Up

  1. 1. Starting Up The Startup Process Customer Development Product Development for Startups
  2. 2. The Startup Process The Startup Process: Turning ideas into products that customer will pay for
  3. 3. The Startup Process • Product/Market fit • How to get to product/market fit
  4. 4. The Startup Process • Product/Market fit – Factors for startup success • Market • Team • Product – Product/Market fit • Being in a good market with a product that can satisfy that market Source: Marc Andreessen
  5. 5. The Startup Process • How to get to product/market fit – Multiple iterations Observe Orient Act Decide – How to make a startup work • Technology infrastructure commoditization • Better methodologies: Customer and product development • Online marketing: SEM, Social • Global Labor Pool Source: Eric Ries
  6. 6. The Startup Process • Learn more – Marc Andreessen, “The only thing that matters” – Eric Ries, “Principles of Lean Startups” – Eric Ries, “Lean Startups – Low Burn by Design, not Crisis” – Paul Graham, “Six Principles for Making New Things”
  7. 7. Customer Development Process Iteration Execution The Search for a Business The Growth of a Business Product/Market Fit The Customer Development Process: Learn what the market wants before scaling Source: Steve Blank & Eric Ries
  8. 8. Customer Development Process • Customer Development Principles • The Customer Development Process
  9. 9. Customer Development Process • Customer Development Principles – Distinct phases of product & company growth – Learning & iteration vs. linear execution – Getting out of the building – Different market types – Finding the right market for the product Source: Steve Blank & Eric Ries
  10. 10. Customer Development Process • The Customer Development Process Iteration Execution The Search for a Business The Growth of a Business Product/Market Fit Test hypotheses - Build a Create end-user Scale via relentless Problem and product repeatable and demand and fill the execution concept scalable sales sales pipeline process Source: Steve Blank
  11. 11. Customer Development Process • The Customer Development Process - Customer Discovery – Principles • There are no facts inside the building, so get outside • Test problem and product concept hypotheses – Exit Criteria • What are customers’ top problems? How much will they pay to solve them? • Does the product concept solve them? Do customers agree? How much will they pay? • Draw a day-in-the-life of a customer – Before & after your product • Draw the organizational chart of users & buyers Source: Steve Blank
  12. 12. Customer Development Process • The Customer Development Process - Customer Validation – Principles • Develop a repeatable and scalable sales process • Only earlyvangelists are crazy enough to buy – Exit Criteria • Is there a proven sales roadmap? Organizational chart? Influence map? • Do you understand the sales cycle? • Is there a set of orders ($’s) validating the roadmap? • Does the financial model make sense? Source: Steve Blank
  13. 13. Customer Development Process • The Customer Development Process - Customer Creation – Principles • Creation comes after proof of sales • Creation is a strategy not a tactic – Exit Criteria • Right startup strategy to execute • Positioning tested & complete • Launch strategy matches startup type • Demand creation activities match startup type • First year objectives match startup type Source: Steve Blank
  14. 14. Customer Development Process • The Customer Development Process - Customer Creation – Customer Creation Activities Market Type First Year Objectives Positioning Demand Creation Launch Existing Market Market share Product Drive demand into Credibility differentiation the sales channel Existing basis of competition Resegmented Market reframing & new Segmentation & Educate market & Segmentation & Market market share innovation drive demand into innovation channel New basis of competition New market Market adoption Defining the new Customer Credibility & market, the need education innovation & the solution Market education & standards setting Source: Steve Blank
  15. 15. Customer Development Process • The Customer Development Process - Company Building – Principles • Move from earlyvangelists to mainstream customers • Build your company’s organization & management – Exit Criteria • Sales growth plan matches market type • Spending plan matches market type • Right team for the stage of company • Mission-oriented culture? Source: Steve Blank
  16. 16. Customer Development Process • Learn more – Steve Blank, “The Four Steps to the Epiphany” – Steve Blank, “The Customer Development Methodology” – Eric Ries, “Lean Startups – Low Burn by Design, not Crisis” – Steve Blank, “Web Startups and Customer Development” – Eric Ries, “What is customer development?”
  17. 17. Product Development for Startups Product Development for Startups: Multiple iterations increase learning and flexibility Source: IDEO
  18. 18. Product Development for Startups • Product Development for Startups • Customer Development Engineering
  19. 19. Product Development for Startups • Product Development for Startups – Known and unknown problems and solutions Traditional Product Development Unit of Progress: Advance to Next Stage Waterfall Requirements Specification Design Problem: known Solution: known Implementation Verification Maintenance Source: Eric Ries
  20. 20. Product Development for Startups • Product Development for Startups – Known and unknown problems and solutions Agile Product Development Unit of Progress: A line of Working Code “Product Owner” or in-house customer Problem: known Solution: unknown Source: Eric Ries
  21. 21. Product Development for Startups • Product Development for Startups – Known and unknown problems and solutions Product Development for Startups Unit of Progress: Validated Learning About Customers Customer Development Hypotheses, Experiments, Problem: unknown Insights Data, Solution: unknown Feedback, Insights Source: Eric Ries
  22. 22. Product Development for Startups • Product Development for Startups – Development principles • Embrace change: Build what you need today • Process-oriented development so change is painless • Prefer flexibility to perfection: Ship early and often • Test-driven to find and prevent bugs • Continuous improvement vs. ship-and-maintain Source: Eric Ries
  23. 23. Product Development for Startups • Customer Development Engineering – Product Development Cycle IDEAS LEARN BUILD DATA CODE MEASURE Source: Eric Ries
  24. 24. Product Development for Startups • Customer Development Engineering – Customer Development Engineering Tactics • Build: – Small batches – Continuous Deployment • Measure: – Split-testing • Learn: – Building a Minimum Viable Product – Five Whys Root Cause Analysis Source: Eric Ries
  25. 25. Product Development for Startups • Learn more – Eric Ries, “Lean Startups” – Eric Ries, “Customer Development Engineering” – Eric Ries, “Lean Startups – Low Burn by Design, not Crisis” – Eric Ries, “How to build a Lean Startup”

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