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Demolishing the Status Quo in Entrepreneurial Education,[object Object]
I Write a Blog  ,[object Object],www.steveblank.com,[object Object]
This Talk is Based On,[object Object],Business Model Generation,[object Object],Four Steps to the Epiphany,[object Object],The Lean Startup,[object Object]
This Talk,[object Object],What’s a Startup?,[object Object],Search versus Execution,[object Object],Entrepreneurship As a Mgmt Science,[object Object],B-Schools = Large company mgmt,[object Object],Incubators = the transition,[object Object],E-School = the conclusion,[object Object]
First -What’s A Startup?,[object Object],Six Types of Startups,[object Object]
Startup,[object Object],Lifestyle Startups Work to Live their Passion,[object Object],[object Object]
Pay for their passion,[object Object]
Feed the family,[object Object]
Feed the family,[object Object]
99.7% of all companies
~ 50% of total U.S. workershttp://www.sba.gov/advo/stats/sbfaq.pdf,[object Object]
Scalable,[object Object],Startup,[object Object],Large Company,[object Object],Scalable Startup,[object Object],Search,[object Object],Goal is to solve for:,[object Object],  unknown customer and unknown features ,[object Object]
Execute,[object Object],Search,[object Object],Scalable,[object Object],Startup,[object Object],Large Company,[object Object],Exit Criteria,[object Object],[object Object]
 Total Available Market > €300m
 Can grow to €50/yearScalable StartupBorn to Be Big,[object Object]
Scalable,[object Object],Startup,[object Object],Large Company,[object Object],[object Object]
 Company can grow to $100m/year
 Business model found
 Focused on execution and process
 Typically requires “risk capital”Scalable Startup,[object Object],Execute,[object Object],Search,[object Object],[object Object]
 Typically needs risk capital
 What Silicon Valley means when they say “Startup”,[object Object]
 Professional Mgmt
 Process
 Beginning of scale,[object Object]
Buyable Startup,[object Object],Search,[object Object],Sell,[object Object],Scalable,[object Object],Startup,[object Object],€3 to e0M Acquisition,[object Object],Goal is to solve for:,[object Object],  Internet and Mobile Apps,[object Object],Sell to larger company,[object Object]
Scalable,[object Object],Startup,[object Object],Large Company,[object Object],[object Object]
 i.e. Product/Market fit- Repeatable sales model,[object Object],- Managers hired,[object Object],What’s A Startup?,[object Object],Search ,[object Object],Execute,[object Object],A Startup is a temporary organization used to search for a repeatable and scalable business model ,[object Object]
Large Company Sustaining InnovationInnovate or Evaporate,[object Object],Sustaining Innovation,[object Object],Transition,[object Object],Scalable,[object Object],Startup,[object Object],Large Company,[object Object],[object Object]
Known product feature needs,[object Object]
New tech, customers, channels,[object Object]
Acquire      - IP- Talent,[object Object],      - Product,[object Object],      - Customers,[object Object],      - Business,[object Object]
Large Non-Profit,[object Object],Social Startup,[object Object],Social Entrepreneurship Startups,[object Object],[object Object]
Social Enterprise: Profitable
Social Innovation: New Strategies,[object Object]
Search Versus ExecutionWhy Accountants Don’t Run Startups,[object Object]
Startups Search and Pivot,[object Object],The Search for the Business Model,[object Object],Scalable,[object Object],Startup,[object Object],Transition,[object Object],Large Company,[object Object], Business Model found,[object Object],[object Object],   i.e. Product/Market fit,[object Object],[object Object]
 Repeatable sales model- Managers hired,[object Object]
Startups Search, Companies Execute,[object Object],The Execution of the Business Model,[object Object],The Search for the Business Model,[object Object],Scalable,[object Object],Startup,[object Object],Transition,[object Object],Large Company,[object Object],- Cash-flow breakeven,[object Object],- Profitable,[object Object],- Rapid scale,[object Object],- New Senior Mgmt,[object Object],~ 150 people,[object Object],[object Object]
 Product/Market fit- Repeatable sales model,[object Object],- Managers hired,[object Object]
Metrics Versus Accounting,[object Object],The Execution of the Business Model,[object Object],Scalable,[object Object],Startup,[object Object],Transition,[object Object],Large,[object Object],Company,[object Object],Traditional Accounting,[object Object],[object Object]
 Cash Flow Statement
 Income Statement,[object Object]
 Viral coefficient
 Customer Lifetime Value
 Average Selling Price/Order Size
 Monthly burn rate
 etc.   Traditional Accounting,[object Object],[object Object]
 Cash Flow Statement
 Income Statement,[object Object]
 Scalable
 Price List/Data Sheets
 Revenue Plan,[object Object]
 Pricing/Feature unstable
 Not yet repeatable
“One-off’s”
 Done by foundersSales,[object Object],[object Object]
 Scalable
 Price List/Data Sheets
 Revenue Plan,[object Object]
 Feature Spec’s
 Competitive Analysis
 Prod Mgmt driven,[object Object]
 Feature Spec’s
 Competitive AnalysisCustomer Development,[object Object],[object Object]
 Minimum Feature Set
 Pivots
 Founder-driven,[object Object]
 Waterfall Development
 QA
 Tech Pubs,[object Object]
 Waterfall Development
 QA
 Tech PubsAgile Development,[object Object],[object Object]
 Continuous Learning
 Self Organizing Teams
 Minimum Feature Set
 Pivots,[object Object]
 Known features for line extensions
 Known customers/markets
 Known business model,[object Object]
 Unknown feature set
 Unknown business model
 Model found by iteration
Plan describes “knowns”
 Known features for line extensions
 Known customers/markets
 Known business model,[object Object]
Entrepreneurship as a Management Science,[object Object],E-School instead of B-School,[object Object]
Business as a Management Science,[object Object],[object Object]
300 years of companies without MBA credentials
1908 Harvard first MBA,[object Object]
 Strategy
 Accounting
 Products
 Engineering
 Management
Administration,[object Object]
 Managing Groups and Teams
 Financial Accounting
 Operations
 Modeling for Optimization
 Global Value Chain Strategies,[object Object]
Cadre of experienced managers to match
Experts on finance and growth (Dupont/GM)B-Schools made the 20th Century the American business century,[object Object]
Business School Focus on Large Company StrategiesExecution versus Search,[object Object]
Business School Limitations,[object Object],[object Object]
Most believe startups are just smaller versions of large companies
Most B-school entrepreneurship programs are side-shows,[object Object]
Incubators a Reaction to the lack of  Practical University Entrepreneurship,[object Object],[object Object]
1996 IdeaLab
2005 Y-Combinator
2011 100+ Incubators world-wide,[object Object]
 Goal: create a company and jobs
 Full-time residential, stipend-based program
 Curriculum: product development + best practices,[object Object]
Startups Are Not Smaller Versions of Large Companies,[object Object],Large Companies Execute Known Business Models,[object Object]
Startups Are Not Smaller Versions of Large Companies,[object Object],Startups Search for Unknown Business Models,[object Object]
E-School ,[object Object],[object Object]
 Goal: methodology for startup creation
 Can be taught anywhere
 University
 Incubator
 Remotely
 Curriculum: about the search for a business model,[object Object]
CUSTOMER SEGMENTS,[object Object],which customers and users are you serving? ,[object Object],which jobs do they really want to get done?,[object Object]
VALUE PROPOSITIONS,[object Object],what are you offering them? what is that ,[object Object],getting done for them? do they care?,[object Object]
CHANNELS,[object Object],how does each customer segment want to be reached? through which interaction points?,[object Object]
CUSTOMER RELATIONSHIPS,[object Object],what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?,[object Object]
REVENUE STREAMS,[object Object],what are customers really willing to pay for? how? ,[object Object],are you generating transactional or recurring revenues?,[object Object]
KEY RESOURCES,[object Object],which resources underpin your business model? which assets are essential?,[object Object]
KEY ACTIVITIES,[object Object],which activities do you need to perform well in your business model? what is crucial?,[object Object],57,[object Object]
KEY PARTNERS,[object Object],which partners and suppliers leverage your model? ,[object Object],who do you need to rely on?,[object Object]
COST STRUCTURE,[object Object],what is the resulting cost structure? ,[object Object],which key elements drive your costs?,[object Object]
value proposition,[object Object],customer relationships,[object Object],key activities,[object Object],customer segments,[object Object],key partners,[object Object],cost structure,[object Object],revenue streams,[object Object],key ,[object Object],resources,[object Object],channels,[object Object],60,[object Object],images by JAM,[object Object]
sketch out your business model,[object Object]
sketch out your business models,[object Object]
But,Realize They’re Hypotheses,[object Object]
9 Guesses,[object Object],Guess,[object Object],Guess,[object Object],Guess,[object Object],Guess,[object Object],Guess,[object Object],Guess,[object Object],Guess,[object Object],Guess,[object Object],Guess,[object Object]
Customer Development,[object Object],The founders,[object Object],^,[object Object],Get Out of the Building,[object Object]
Customer DevelopmentThe Search For the Business Model,[object Object],Company,[object Object],Building,[object Object],CustomerDiscovery,[object Object],CustomerValidation,[object Object],Customer Creation,[object Object],Pivot,[object Object]
Customer Discovery,[object Object],CustomerDiscovery,[object Object],CustomerValidation,[object Object],Company,[object Object],Building,[object Object],CustomerCreation,[object Object],Stop selling, start listening,[object Object],Test your hypotheses,[object Object],Continuous Discovery,[object Object],Done by founders,[object Object]
Test Hypotheses:,[object Object],[object Object]
 Market Type
 CompetitionTurning Hypotheses to Facts,[object Object]
Test Hypotheses:,[object Object],[object Object]
 Customer
 User
 Payer,[object Object],[object Object]
 Customer
 User
 PayerTest Hypotheses:,[object Object],[object Object]
 Market Type
 CompetitiveTest Hypotheses:,[object Object],[object Object]
 (Customer)
 (Problem)Test Hypotheses:,[object Object],[object Object],Test Hypotheses:,[object Object],[object Object]
 Validate Business ModelTest Hypotheses:,[object Object],[object Object],[object Object]
 Customer
 User
 PayerAgile Development,[object Object],Test Hypotheses:,[object Object],[object Object]
 Market Type
 CompetitiveTest Hypotheses:,[object Object],[object Object]
 (Customer)
 (Problem)Customer Development Team,[object Object],Test Hypotheses:,[object Object],[object Object],Test Hypotheses:,[object Object],[object Object]
 Validate Business ModelTest Hypotheses:,[object Object],[object Object],[object Object]
The Pivot,[object Object],[object Object]
Iteration without crisis
Fast, agile and opportunistic,[object Object]
Minimum feature set speeds up cycle time
Near instantaneous customer feedback drives feature set,[object Object]
The Pivot,[object Object],Strong clinical data,[object Object],Training,[object Object],Maintenance,[object Object],Conferences,[object Object],CME courses,[object Object],Product Development,[object Object],IP,[object Object],Clinical trials,[object Object],FDA,[object Object],Publishing,[object Object],Doctors:,[object Object],Earlier detection,[object Object],Price,[object Object],Accuracy,[object Object],Patients:,[object Object],Radiation Free,[object Object],Non-Invasive,[object Object],A Pivot is the change of one or more Business Model Canvas Components ,[object Object],Leading doctors,[object Object],Key Opinion Leaders,[object Object],3rd party manufacturers,[object Object],Distributors,[object Object],Breast Cancer Foundations,[object Object],ACOGACS,[object Object],OB/GYNs,[object Object],PCPs,[object Object],Direct Sales to hospitals,[object Object],Distributor,[object Object],IP  ,[object Object],Leading doctors,[object Object],Technical Expertise,[object Object],Product Development,[object Object],Clinical trials,[object Object],Operating Costs,[object Object],Marketing Costs,[object Object],Capital Equipment Sales and disposable item,[object Object],Per use fees,[object Object]
How Does This Really Work?Stanford Lean LaunchPad Class,[object Object]
How Does This Really Work?Stanford Lean LaunchPad Class,[object Object],8 Weeks From an Idea to a Business,[object Object]
Pivot ExampleRobotic Weeding,[object Object],Talked 75 Customers in 8 Weeks,[object Object]
Our initial plan,[object Object],Confidential,[object Object]
20 interviews, 6 site visits…We got OUR Boots dirty,[object Object],Weeding,[object Object],Visited two farms in Salinas Valley to better understand problem,[object Object],Interviewed:,[object Object],[object Object]
White Farms, Large Peanut farmer in Georgia
REFCO Farms, large grower in Salinas Valley
Rincon Farms, large grower in Salinas Valley
Small Organic Corn/Soy grower in Nebraska
Heirloom Organics, small owner/operator, Santa Cruz Mts
Two small organic farmers at farmers market
Ag Services of Salinas, Fertilizer applicatorMowing,[object Object],Interviewed:,[object Object],[object Object]
Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)
Toro dealer (large mower manufacturer)
User of back-yard mowing system
Maintenance Services for City of Los Altos
Colony Landscaping (Mowing service for stadiums),[object Object]
Found weeding in organic crops is HUGE problem; 50 - 75% of costs,[object Object],Crews of 100s-1000,[object Object],Back-breaking task,[object Object],(Ilegal) labor harder to get ,[object Object],1-5 weedings per year/field,[object Object],$250-3,500 per acre and increasing,[object Object],Food contamination risk,[object Object]

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