WHATS’S THE KEY      DIFFERENCE       BETWEEN ASCALEABLE START UP    AND A LARGER      ESTABLISHED      COMPANY?          ...
Unlike a large   Start up’s need                 to keep a lowprofitable       cash burn ratecompany,         untilstart u...
To keep a low cash burn rate, use the 1.   OBSERVE            2.   ORIENT 3.   DECIDE             4. ACT                  ...
Its about questioning your core business assumptionsrather than assume your beliefs about your business to be true
There are 4 stages
CustomerDevelopment              focuses on              understanding              customer              problems and    ...
CustomerValidation             focuses on             developing a             sales model that             can be        ...
CustomerCreation           focuses on           creating and           driving end user           demand
focuses onCustomer   transitioning theBuilding   organisation           from one           designed for           learning...
The standard for testing business model                             hypotheses                                      Buy th...
A start up should         Focus on reaching a deep understanding         of customers and their problems
A start up should         Focus on discovering a repeatable road         map of how they buy
A start up should                    Focus on building a financial                    model that results in profitability
How do you measure that?             By asking yourself the right questions
The appropriate milestones that measure a start up’s progress                           answers these questions:
How well do we understand                what problems customers have?
How much will they pay                         to solve those problems?
Do our product features                          solve these problems?
Do we understand             our customers’ business?
Do we understand               the hierarchy of customer needs?
Have we found visionary customers              ones who will buy our product early
Is our product a must-have                             for these customers?
Do we understand the sales  road map well enough                  to consistently sell the product?
Do we understand                   what we need to be profitable?
Are the sales and business plans              realistic, scalable, and achievable?
What do we do          if our model turns out to be wrong?
The standard for testing business model hypotheses
Want to quickly find a profitable and scalable business model?                                    See part five
Startups are different pt4
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Startups are different pt4

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Transcript of "Startups are different pt4"

  1. 1. WHATS’S THE KEY DIFFERENCE BETWEEN ASCALEABLE START UP AND A LARGER ESTABLISHED COMPANY? PART FOUR
  2. 2. Unlike a large Start up’s need to keep a lowprofitable cash burn ratecompany, untilstart ups are the company has validated itsconstrained business modelby their by findingavailable paying customerscash
  3. 3. To keep a low cash burn rate, use the 1. OBSERVE 2. ORIENT 3. DECIDE 4. ACT OODA loop in a start up context
  4. 4. Its about questioning your core business assumptionsrather than assume your beliefs about your business to be true
  5. 5. There are 4 stages
  6. 6. CustomerDevelopment focuses on understanding customer problems and needs
  7. 7. CustomerValidation focuses on developing a sales model that can be replicated
  8. 8. CustomerCreation focuses on creating and driving end user demand
  9. 9. focuses onCustomer transitioning theBuilding organisation from one designed for learning and discovery to a well-oiled machine engineered for execution
  10. 10. The standard for testing business model hypotheses Buy this book
  11. 11. A start up should Focus on reaching a deep understanding of customers and their problems
  12. 12. A start up should Focus on discovering a repeatable road map of how they buy
  13. 13. A start up should Focus on building a financial model that results in profitability
  14. 14. How do you measure that? By asking yourself the right questions
  15. 15. The appropriate milestones that measure a start up’s progress answers these questions:
  16. 16. How well do we understand what problems customers have?
  17. 17. How much will they pay to solve those problems?
  18. 18. Do our product features solve these problems?
  19. 19. Do we understand our customers’ business?
  20. 20. Do we understand the hierarchy of customer needs?
  21. 21. Have we found visionary customers ones who will buy our product early
  22. 22. Is our product a must-have for these customers?
  23. 23. Do we understand the sales road map well enough to consistently sell the product?
  24. 24. Do we understand what we need to be profitable?
  25. 25. Are the sales and business plans realistic, scalable, and achievable?
  26. 26. What do we do if our model turns out to be wrong?
  27. 27. The standard for testing business model hypotheses
  28. 28. Want to quickly find a profitable and scalable business model? See part five

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