National governors association july 2012
 

National governors association july 2012

on

  • 8,840 views

 

Statistics

Views

Total Views
8,840
Views on SlideShare
8,680
Embed Views
160

Actions

Likes
15
Downloads
205
Comments
4

7 Embeds 160

https://twitter.com 47
https://si0.twimg.com 33
https://twimg0-a.akamaihd.net 29
http://www.linkedin.com 21
http://tweetedtimes.com 16
http://us-w1.rockmelt.com 13
https://www.linkedin.com 1
More...

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • Very good presentation. I know several Governors have been proactive in creating entrepreneurial environment in their states. However, I see a great need for creating Intrapreneurial Environment in state Govt itself. Recently I have seen some improvement in this issue in some of the state Govts. Hope we can spread this to all state govts. We need to focus more on value-added activities for the federal grants management.
    Are you sure you want to
    Your message goes here
    Processing…
  • National Governors Association Annual Meeting Day 3 Closing Session July 15, 2012 Governor Dave Heineman, Nebraska, Chair Governor Jack Markell, Delaware, Vice Chair Growing the Next Big Idea - Guest: Steve Blank, Author of the Startup Owner s Manual , Consulting Professor Stanford and U.C. Berkeley Remarks by the 2012-2013 NGA Chair http://www.c-spanvideo.org/program/306971-1
    Are you sure you want to
    Your message goes here
    Processing…
  • Steve, this is a wonderful presentation. I feel like coining the name start-down for many start-ups rapidly go on the downhill. A lovely classification of start-ups. I liked the slides on disruptive innovation in particular.
    Are you sure you want to
    Your message goes here
    Processing…
  • Great presentation. This type of research and information sharing is what our government leaders across America need in order to help rebuild the global economy.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

National governors association july 2012 National governors association july 2012 Presentation Transcript

  • Growing The Next Big IdeaWhat We’ve Learned About Startups
  • What Have We Learned?
  • What Have We Learned?Lesson 1: Types of StartupsLesson 2: EcosystemLesson 3: How to Fail LessLesson 4: Can we Teach Entrepreneurship?
  • Lesson 1:Types of Startups
  • Lifestyle StartupsWork to Live their Passion
  • Lifestyle Startups Work to Live their Passion Startup• Serve known customer with known product• Work for their passion
  • Social Entrepreneurship Startups
  • Social Entrepreneurship Startups Social Large Startup Non-Profit• Solve pressing social problems• Social Enterprise: Profitable• Social Innovation: New Strategies
  • Small Business Startups Work to Feed the Family
  • Small Business Startups Work to Feed the Family Small Startup Business• Serve known customer with known product• Feed the family
  • Small Business Startups Work to Feed the Family Small Startup Business Exit Criteria• known customer - Business Model found known product - Profitable business• Feed the family - Existing team < $500K in revenue
  • Small Business Startups Small Startup Business• 5.7 million small businesses in the U.S. <500 employees• 99.7% of all companies• ~ 50% of total U.S. workers http://www.sba.gov/advo/stats/sbfaq.pdf
  • Scalable Startup
  • Scalable Startup Search Execute Scalable Large Startup Company• In contrast a scalable startup is designed to grow big• Typically needs risk capital• What Silicon Valley means when they say “Startup”
  • Scalable Startup Search Scalable Large Startup CompanyGoal is to solve for: unknown customer and unknown features
  • Scalable Startup Born to Be BigSearch ExecuteScalable LargeStartup Company Exit Criteria - Business model found - Total Available Market > $500M - Can grow to $100M/year
  • Buyable Startup Born to Sell
  • Buyable Startup Born to Sell Search Sell Scalable $5 to 50M Startup AcquisitionTypically: Internet, Mobile, Gaming Apps
  • Buyable Startup Search Sell Scalable $5 to 50M Startup AcquisitionGoal is to solve for: Sell to larger company Internet and Mobile Apps
  • Large Company Sustaining Innovation Innovate or Evaporate Sustaining Innovation Scalable Large Transition Startup Company • Existing Market / Known customer •Known product feature needs
  • Large Company Disruptive Innovation New Large Transition Division Company Disruptive Innovation•New Market•New tech, customers, channels
  • Large Company Disruptive Innovation New Large Transition Division Company Disruptive Innovation •Build •Partner •Acquire - IP - Talent - Product - Customers - Business
  • Large Company Disruptive Innovation New Large Transition Division Company Disruptive Innovation • Build • Partner •Acquire = an internal corporate startup
  • Summary Lesson 1: Multiple Types of Startups Policies, Funding and Tactics DifferTechniques to build them are the same
  • Lesson 2:History of a Startup Ecosystem
  • Silicon Valley Was a Series of Unintended Consequences
  • Outward-Facing Research University Building Weapons System 1946 – 1968 WWII/Cold War
  • Massive Government R&DInvestment in Weapons Systems 1956 – 1980’s Cold War
  • One Professor Changes The System1925 – 1965 University/Military/Industry
  • Sputnik LaunchesVenture Investing1958 – SBIC Program
  • Regulatory Change Accelerates Venture Capital 1979 – Change in Employee Retirement Income Security Act Pension Funds Pile In
  • Culture Embraced Technology Risk 1958 – TodayRecognized that 90% of startups fail
  • Culture Embraced Financial Risk 1968 – Today Experienced Advice Tolerance For RiskLong Term Interest Aligned
  • So What Lessons Can We Learn To Build Innovation? Without Cold War Funding
  • Technology Ecosystem: Infrastructure Venture Entrepreneurs Finance Motivation Crisis Profit Management Customer Agile Business Model Tools Development Development Design Culture Risk Taking Entrepreneurial Outward-Facing Free flow of Tech Universities People/InfoInfrastructure Research Predictable Stable 24/7 Utilities Universities Economic System Legal System
  • Technology Ecosystem: Culture Venture Entrepreneurs Finance Motivation Crisis Profit Management Customer Agile Business Model Tools Development Development DesignCulture Accelerators, Outward-Facing Free flow of Risk Taking Incubators Tech Universities People/InfoInfrastructure Research Predictable Stable 24/7 Utilities Universities Economic System Legal System
  • Technology Ecosystem: Tools Entrepreneurs Risk CapitalMotivation Crisis ProfitManagement Customer Agile Business Model Tools Development Development Design Culture Accelerators, Outward-Facing Free flow of Risk Taking Incubators Tech Universities People/Info Infrastructure Research Predictable Stable 24/7 Utilities Universities Economic System Legal System
  • Technology Ecosystem: Motivation Entrepreneurs Risk CapitalMotivation Crisis ProfitManagement Customer Agile Business Model Tools Development Development DesignCulture Accelerators, Outward-Facing Free flow of Risk Taking Incubators Tech Universities People/InfoInfrastructure Research Predictable Stable 24/7 Utilities Universities Economic System Legal System
  • Technology Ecosystem Entrepreneurs Risk CapitalMotivation Crisis ProfitManagement Customer Agile Business Model Tools Development Development DesignCulture Risk Taking Accelerators, Outward-Facing Free flow of Incubators Tech Universities People/InfoInfrastructure Research Predictable Stable 24/7 Utilities Universities Economic System Legal System
  • Lesson 3:Making Startups Fail LessLessons From Silicon Valley and the National Science Foundation
  • After 50 years of Silicon ValleyWe Now Know How To Build Startups
  • More startups fail froma lack of customers than from afailure of product development
  • What We Used to Believe
  • Startups are Smaller Versions of Large Companies
  • What We Now Know
  • Startups are Not Smaller Versions of Large Companies
  • Startups SearchLarge Companies Execute
  • What We Used to Believe
  • All I Need to Do is Execute the Plan
  • Actual Photo of What Happens When Plan Meets First Contact With Customers
  • All I Need is the 5- Year Forecast
  • Previous5-Year Plans
  • What We Now Know
  • No Business Plan Survives First Contact With Customers
  • Searching comes before the plan
  • What’s A Startup?
  • A temporary organization designed to searchfor a repeatable and scalable business model
  • A temporary organization designed to searchfor a repeatable and scalable business model
  • A temporary organization designed to searchfor a repeatable and scalable business model
  • A temporary organization designed to searchfor a repeatable and scalable business model
  • © 2012 Steve Blank
  • But,Realize They’re Hypotheses
  • Customer Development ishow you search for the model
  • Summary Lesson 3:Making Startups Fail Less1. Startups Are Not Smaller Versions Of Large Companies2. Customer Development & Business Models – Replace Business Plans
  • Lesson 4:Can We Teach This?
  • Can We Teach This? Lean LaunchPad Class8 Weeks, 100 Customer Calls
  • Can We Teach This? Lean LaunchPad ClassNational Science Foundation
  • The Data Says Yes You Can
  • Knowledge about Startups? Coming Into the Class
  • Knowledge About Startups? After the Class
  • The Data SaysIt Will Create New Companies
  • Knowledge About Building a Company Coming Into the Class
  • Knowledge About Building a Company After the Class
  • What About the Other 99%Will this Work on Main Street?
  • Small businesses are being built with business tools from the 1950’s
  • These Techniques Now Can Help Small Business Fail Less
  • In Closing:So What Can States Do?
  • Recommendation 1EncourageFail Fast and Move Fast Culture
  • Recommendation 2Encourage Incubators / Accelerators
  • Recommendation 3 Incent Risk Capital to LocateNext to Your Entrepreneurial Centers
  • Recommendation 4Encourage Your Universities to build 21st Century Entrepreneurship Curriculum +
  • Recommendation 5 Encourage Small Business Initiativesto Adopt these Same Techniques
  • I’ve open-sourced all this material Happy to share it www.steveblank.com sblank@kandsranch.com Curriculum, Syllabus, Slides, Teaching Guide and On-line Courses all available for free www.steveblank.com