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Happy farm intro BD

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workshop by Bob Dorf

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Happy farm intro BD

  1. 1. An Introduction and WELCOME! BOB DORF allegedly retired serial entrepreneur bob@kandsranch.com www.steveblank.com 1
  2. 2. WELCOME to our journey…• To help you try to build strong, profitable new businesses• NOT to guarantee success, but to minimize risk of failure• …to teach you how to use “startup tools” on YOUR startup• …get YOU “out of the building” to gain/use customer feedback• …and to do all we can to help you WIN! 2
  3. 3. This is Damn Hard…• Long term success rate in startups is very, very low• It’s all about “traction…”- very hard to achieve• Competition, investment both extremely challenging• You will be outspent, out-engineered, outrun• YOUR TEAM AND I will do all we can to help…• But most of the success is on your shoulders 3
  4. 4. Why are we here??• The odds are very much against your success• We want to reduce the risk of failure• And provide support to help you and your team build a strong, enduring company!…What really matters most:• GREAT companies with long-term potential• Excited CUSTOMERS who tell their friends 4
  5. 5. This is NOT a test…• Customer Development is in use worldwide• Thousands of startups use all or part of the process• Adopted by 50+ leading Universities• …but this is NOT a class…• …the ONLY grade is how successful YOU are! 5
  6. 6. More startups fail froma lack of customers than from afailure of product development 6
  7. 7. Our focus is finding customersfor your product even before you have built the product! 7
  8. 8. Very simple business math: 0 customers= 0 business! 8
  9. 9. A bit about me…• “Unemployable” since age 22, 4 decades ago(!!)• 7 startups: 2 homeruns, 2 base hits, 3 tax losses• >20x startups Investor/coach: 7 IPO’s, 6 disasters• 3 years almost living with Steve, writing, teaching• Adjunct Professor, Columbia Business School• 1 great kid, PhD, mom, proudest startup of all! 9
  10. 10. The best “tuition” of all… 10
  11. 11. 500 startup misteaks in 608 pages…. 11
  12. 12. A bit about you…• First-time entrepreneurs?• Engineers?• Marketeers?• Third startup?• Cloners?• “Keeping my Day Job” for now• Ready to work 80 hours a week?• ..for the glory?• …for the $? 12
  13. 13. Questions? 13
  14. 14. We’ve learned a lot about entrepreneurship 14
  15. 15. 15
  16. 16. Part 1What We Used to Believe What We Now Know 16
  17. 17. What We Used to Believe 17
  18. 18. There is one type of startup and one type of entrepreneur 18
  19. 19. What We Now Know:There are many types of startups 19
  20. 20. Scalable Startup Why most of you are here today! Search Execute Scalable Large Startup CompanyGoal is to solve for: unknown customer and unknown features 20
  21. 21. Scalable Startup Search Execute Scalable Large Startup CompanyGoal is to solve for: Exit Criteria unknown customer and - Business model found unknown features - Total Available Market > $500m - Can grow to >$100m/year - Can be Venture capital funded 21
  22. 22. But startups may be… 22
  23. 23. Lifestyle Startups Work to Live your Passion Startup• Serve known customer with known product• Work for their passion• NOT “Mark Zuckerberg”• YET can employ many in a very profitable long-term enterprise 23
  24. 24. Small Business Startups Work to Feed the Family Small Startup Business• Serve known customer with known product• Feed the family 24
  25. 25. 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 - Not venture-backable 25
  26. 26. Social Entrepreneurship Startups Social Large Startup Non-Profit• Solve pressing social problems• Social Enterprise: Profitable• Social Innovation: New Strategies • Not venture-backable 26
  27. 27. Buyable Startup Search Sell Scalable $2 to $50M Startup AcquisitionGoal is to solve for: - Sell to larger company Internet, Mobile, Gaming Apps - Angel or early stage VC 27
  28. 28. :what matters mostKNOW your GOAL at the startSHARE it with coaches, team, investors (it’s always easier to make it bigger later) 28
  29. 29. Teaching Entrepreneurs:What We Used to Believe 29
  30. 30. What a Startup Really Looks Like 30
  31. 31. Startups are About Vision & Ideas, sweat and luck 31
  32. 32. What We Now Know 32
  33. 33. Most visions are very blurry at best 33
  34. 34. What We Used to Believe 34
  35. 35. Startups are a Smaller Version of a Large Company 35
  36. 36. What We Now Know 36
  37. 37. Startups SearchCompanies Execute 37
  38. 38. What We Used to Believe Strategy 38
  39. 39. Start With a Business Plan and a Financial Model 39
  40. 40. All You Need to Do is Execute the Plan 40
  41. 41. And You Need to Make the Forecast 41
  42. 42. All You Need to Do: Execute the Plan 42
  43. 43. What We Now Know Strategy 43
  44. 44. No Business Plan survivesfirst contact with customers 44
  45. 45. Planning comes before the plan 45
  46. 46. Some Ground Rules• Interrupt me ANYTIME• This is HARD – Unpredictable – Accept and learn from failure – All must agree we’re on a “search”• YOU will customize our agenda as we go…using the “Customer Development” process• Try to generalize your issues/questions• Please say “go faster,” “go slower,” or “wait a minute!”• …and feel free to throw things if I don’t hear you! 46
  47. 47. What’s A Startup? Search Execute Scalable Large Startup Company- Business Model found- i.e. Product/Market fit- Repeatable sales model- Managers hired A Startup is a temporary organization used to search for a repeatable and scalable business model 47
  48. 48. Scalable Startup Search Scalable Large Startup CompanyGoal is to solve for: unknown customer and unknown features…New customers unknown in many markets…Desired features unknown in many markets 48
  49. 49. Scalable StartupSearch ExecuteScalable LargeStartup Company Exit Criteria - Business model found - Total Available Market > $500m -$1B - Can grow to $100m/year Criteria: can it get BIG?? …not quite today…but is it on the path? 49
  50. 50. Why 95+% of startups die?• All product, no customers• No problem• The “lock step”• Premature scaling• No product/market fit• No more dough• …some of us will fail. Certainly it’s not YOU! 50
  51. 51. Questions? 51

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