APM Welcome, APM North West Network Conference, Synergies Across Sectors
Why fighter pilots run startups 090511
1. Why Fighter Pilots Run Startups Steve Blank Stanford - School of Engineering U.C. Berkeley - Haas School Of Business www.steveblank.com Twitter: sgblank
27. Buyable Startup Search Sell Scalable Startup €3 to e0M Acquisition Goal is to solve for: Internet and Mobile Apps Sell to larger company
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29. i.e. Product/Market fit- Repeatable sales model - Managers hired What’s A Startup? Search Execute A Startup is a temporary organization used to search for a repeatable and scalable business model
30. Venture Firms Invest in Scalable and BuyableStartups Small Business Startup Scalable Startup Large Company
103. CUSTOMER SEGMENTS which customers and users are you serving? which jobs do they really want to get done?
104. VALUE PROPOSITIONS what are you offering them? what is that getting done for them? do they care?
105. CHANNELS how does each customer segment want to be reached? through which interaction points?
106. CUSTOMER RELATIONSHIPS what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
107. REVENUE STREAMS what are customers really willing to pay for? how? are you generating transactional or recurring revenues?
108. KEY RESOURCES which resources underpin your business model? which assets are essential?
109. KEY ACTIVITIES which activities do you need to perform well in your business model? what is crucial? 54
110. KEY PARTNERS which partners and suppliers leverage your model? who do you need to rely on?
111. COST STRUCTURE what is the resulting cost structure? which key elements drive your costs?
112. value proposition customer relationships key activities customer segments key partners cost structure revenue streams key resources channels 57 images by JAM
113. Solving For Customer Risk:Customer Development Get the Hell Out of the Building
114. Solving For Customer Risk:Customer Development Get the Hell Out of the Building Country
115. Product Development Concept/Bus. Plan Product Dev. Alpha/Beta Test Launch/1st Ship + CustomerDevelopment Company Building CustomerDiscovery CustomerValidation Customer Creation Customer Development
116. Customer Discovery CustomerDiscovery CustomerValidation Company Building CustomerCreation Stop coding, stop selling, start listening Test your hypotheses Continuous Discovery
139. Found weeding in organic crops is HUGE problem; 50 - 75% of costs Crews of 100s-1000 Back-breaking task (Ilegal) labor harder to get 1-5 weedings per year/field $250-3,500 per acre and increasing Food contamination risk
141. Autonomous vehiclesWEEDING Dealers sell, installs and supports customer Co. trains dealers, supports dealers - Innovation - Customer Education - Dealer training - Low density vegetable growers - High density vegetable growers - Thinning operations - Conventional vegetables We reduce operating cost - Labor reduction (100 to 1) - Reduced risk of contamination - Mitigate labor availability concerns - Ag Dealers - Ag Service providers - Research labs - Ag Dealers - Ag Service providers Engineers on Machine Vision Two problems: - Identification - Elimination Asset sale Our revenue stream derives from selling the equipment Dealer discount COGS seek a 50-60% Gross Margin Heavy R&D investment
170. Visit Highlights Above: Organic Carrots, 7wks. Top right: Conventional carrots Bottom Right: Very weedy. Will require multiple passes of hand weeding
171. Visit Highlights Carrot vs. Weeds Due to small root systems, carrots have no chance against weeds
216. World Ag Expo interviews:the need is real and wide spread 10+ interviews at show Everyone confirmed the need Robocrop, UK based, crude competitor sells for $171 K Revenue Stream Mid to small growers prefer a service Large growers prefer to buy, but OK with service until technology is proven Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability) Confidential
263. Am I an Entrepreneur?Startup Personal Checklist Are you comfortable with: Chaos Uncertainty Are you: Curious Resilient Agile Passionate Driven Articulate Tenacious
264. EntrepreneurshipYour Role in a Startup Decreasing chaos/reward Founder Co-founder Early Employee Late Employee They don’t require the same risk/personality profile
265. February 28, 2009 One candidate got a C in macroeconomics. “That’s troubling to me,” Ms. Mayer says. “Good students are good at all things.”Marissa MayerGoogle
266. The “Good Student” Will go to work for Google, Microsoft, NokiaIBM or Apple Successful tech entrepreneurs and grades have at best zero correlation
