The startup owners manual sxsw

1. The Startup Owners Manual Steve Blank Stanford - School of Engineering U.C. Berkeley - Haas School Of Business www.steveblank.com Twitter: @sgblank

2. See the Animated Version of this Presentation at: http://www.slideshare.net/sblank/th e-startup-owners-manual-sxsw-the- movie-2

3. This Talk is Based On • Business Model Generation • The Lean Startup • Four Steps to the Epiphany

4. This Talk is Based On • Business Model Generation • The Lean Startup • The Startup Owners Manual

5. Not all those who wander are lost Bilbo Baggins

6. The Search for a Path 1602 - 1908

9. The Path to Business Execution But Startups are Not Smaller Versions of Larger Companies

11. From Atoms to Bits

13. The Startup Path Search Versus Execution

15. What’s a Startup?

17. What’s a Business Model?

19. Value Proposition What Are You Building and For Who?

21. Customer Segments Who Are They? Why Would They Buy?

23. Channels How does your Product Get to Customers?

25. Customer Relationships How do you Get, Keep and Grow Customers?

27. Revenue Streams How do you Make Money?

29. Key Resources What are your most important Assets?

31. Key Partners Who are your Partners and Suppliers?

33. Key Activities What’s Most Important for the Business?

35. Cost Structure What are the Costs and Expenses

37. Turning Hypotheses Into Facts

39. The Four Steps – The Startup Path Customer Development

41. Customer Development There Are No Facts Inside The Building, So Get the Heck Outside

43. Customer Development Test the Problem, Then the Solution

45. Customer Development The Entrepreneurial Journey

47. Startup Owners Manual

48. Startup Owners Manual National Science Foundation

49. Startup Owners Manual • Yes there’s an E-Book version coming • Free autographed copies - Sunday Startup America Salon E 1:30 -3pm

50. Examples from the Book

51. Examples from the Book

52. Customer Relationships

59. How Does This Really Work? Lean LaunchPad Class National Science Foundation

60. How Does This Really Work? 8 Weeks from an Idea to a Business

61. Interviews: 252 Partner: 10 Survey: 76 Team Dynamo Final Presentation

62. THE TEAM MeghGautam Al Hassan Hleileh MS&E MS MBA 2  BTech in IT  MA in POL PICTURE PICTURE ECON SOC H Hung Le ElikaMahdavi MS&E MS MS&E MS  BS in EE/CS  BS in Indus.Eng. PICTURE PICTURE

63. TABLE OF CONTENTS 1. Overview of our idea evolution 2. Our journey from week 1 to week 8 3. Current Idea  Archetype  Product vision  Partner  Channel & Demand Creation  Competitive Landscape  Market Sizing 4. Lesson learned and what next

64. IDEA EVOLUTION THROUGH PIVOT 1 2 3 4 5 6 7 8 Travel Social Ex-pat Safe Travel inspiration - Nudge to enrich life booking travel travel travel Social platform that portal for planning portal to portal for nudges people to Middle Middle US inspire and enrich Easterns East travelers their life to M.E. Focus Competition Market size Market Scalability Customer Customer size Market size Insights Insights Research

65. Interviews: 20 1 Travel booking portal for Middle Easterns

66. WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Middle East focused Travel booking portal Hotels  Middle East focused platform price Product Development Lowest Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Events (Festivals) Relationship with Convenient Brand awareness/ Willing to explore  Offer a booking platform with group discounts and flash-sales Car rentals Promotion companies hotels; airlines; car rentals Experiential UI Social Validation identification Pilots Young and single Deal listings Sourcing deals Create a Community Cross pollination Divergent origins State Tourism Acquisition, retain Multiple options Events (Parties!) Social media savvy  Ramp up strategy through social conversations Travel agents customers Best Actionable deals Conventions (CES) Relevant locations Young couples Business Schools Trendsetting behavior  Preserve memories of travel through photo sharingand quotes (Study groups) Young families Best education for kids Cultural experience Web and mail Trendy destinations Advertising Market understanding Social Media Best in class product Word of Mouth Relationship with Referrals partners Customer call centers Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events

67. WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Hotels Product Development Lowest price Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Events (Festivals) Relationship with Convenient Brand awareness/ Willing to explore Car rentals hotels; airlines; car Experiential UI identification Promotion companies rentals Social Validation Pilots Young and single Deal listings Sourcing deals Create a Community Cross pollination Divergent origins State Tourism Acquisition, retain Multiple options Events (Parties!) Social media savvy Travel agents customers Best Actionable deals Conventions (CES) Relevant locations Young couples Business Schools Trendsetting behavior (Study groups) Young families Best education for kids Cultural experience Web and mail Trendy destinations Advertising Market understanding Social Media Best in class product Word of Mouth Relationship with Referrals partners Customer call centers Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events

68. WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Hotels Product Development Lowest price Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Events (Festivals) Relationship with Convenient Brand awareness/ Willing to explore Car rentals hotels; airlines; car Experiential UI identification Promotion companies rentals Social Validation Pilots Young and single Deal listings Sourcing deals Create a Community Cross pollination Divergent origins State Tourism Acquisition, retain Multiple options Events (Parties!) Social media savvy Travel agents customers Best Actionable deals Conventions (CES) Relevant locations Young couples Business Schools Trendsetting behavior (Study groups) Young families Best education for kids Cultural experience Lack of focus in value propositions Web and mail Trendy destinations Advertising Market understanding Social Media  Too broad a platform Best in class product Word of Mouth Relationship with Referrals partners Customer call centers  Too many value propositions Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events

69. WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Hotels Product Development Lowest price Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Events (Festivals) Relationship with Convenient Brand awareness/ Willing to explore Car rentals hotels; airlines; car Experiential UI identification Promotion companies rentals Social Validation Pilots Young and single Deal listings Sourcing deals Create a Community Cross pollination Divergent origins State Tourism Acquisition, retain Multiple options Events (Parties!) Social media savvy Travel agents Conventions (CES) customers Market sizing problem Best Actionable deals Relevant locations Young couples Business Schools Trendsetting behavior (Study groups)  The method we used was a top-down approach Young families Best education for kids Cultural experience  We didn’t use net numbers (gross) Web and mail Trendy destinations Advertising Market understanding Social Media Best in class product Relationship with  The lesson here is that if we were to do it Word of Mouth Referrals partners again we would use bottom up / net figures Customer call centers Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events

70. WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Lack of focus in customer segments Hotels Product Development Lowest price Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Events (Festivals) Relationship with We were not focused on a Convenient Brand awareness/ Willing to explore Car rentals hotels; airlines; car specific customer segment Experiential UI identification Promotion companies rentals Social Validation Pilots Young and single Deal listings Sourcing deals – too broad. Create a Community Cross pollination Divergent origins State Tourism Acquisition, retain Multiple options Events (Parties!) Social media savvy Travel agents customers Best Actionable deals Conventions (CES) Our interview base was Relevant locations Young couples Business Schools Trendsetting behavior (Study groups) biased towards our network – needed a better sample. Young families Best education for kids Cultural experience Web and mail Trendy destinations Advertising Market understanding Social Media Best in class product Word of Mouth Relationship with Referrals partners Customer call centers Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events

71. WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Hotels Product Development Lowest price Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Key learning Events (Festivals) Relationship with Convenient Brand awareness/ Willing to explore Car rentals hotels; airlines; car Experiential UI identification Promotion companies rentals Social Validation Pilots Young and single  Focus is crucial – be it in your value proposition or in your customer Deal listings State Tourism Sourcing deals Acquisition, retain Create a Community Multiple options Cross pollination Events (Parties!) Divergent origins Social media savvy segmentation Travel agents customers Best Actionable deals Conventions (CES) Relevant locations Young couples Business Schools Trendsetting behavior  Market sizing – Use bottom up whenever possible (Study groups) Young families Best education for kids  Get out of the building – in spirit and in action. Avoid bias Cultural experience Trendy destinations Web and mail Advertising Market understanding Social Media Best in class product Word of Mouth Relationship with Referrals partners Customer call centers Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events

72. Interviews: 20 1 2 Travel Social booking travel portal for planning Middle Easterns Customer focus

73. WEEK 2 – SOCIAL TRIP PLANNING Week 2 New Remain Remove Pivot to social travel planning for group traveling Social Networks Through Acquisition Customer our mentors, we really dug into our customers insights Easy and pleasurable Trusted relationships Young and the affluent Travel Publications Customer Retention trip planning Successful partnerships High disposable incomes Product Dev Best inventory Events (Parties!) Willing to explore Hotels  They were telling us that they didn’t just want to go to the Relationship with key Business Schools partners Convenient Brand awareness/ Young and single Travel agents middle east Sourcing deals Experiential UI identification Divergent origins Airlines Lowest price Pilots Social media savvy Events Multiple options Cross pollination Deal listings  They wanted a seamless, social and enjoyable travel Best Actionable deals Young couples Car rentals experience from A-Z Relevant locations Create a Community Trendsetting behavior Promotion companies Social Validation Young families State Tourism Conventions (CES)  We pivoted to The Middle Easts travel booking portal with a Best education for kids Cultural experience ramp up focused on influential who want easy and Word of Mouth Trendy destinations Social Media Market understandingtrip planning pleasurable Human Capital Web and mail Relationship with Advertising partners Referrals Customer call centers Best in class product Magazines Human Capital Percentage of booking costs Product Development Advertising costs Percentage of hotel/package (s) Maintaining relationships Advertising revenues Refunds Event of the month Exclusive partnership with events

74. WEEK 2 – SOCIAL TRIP PLANNING Week 2 New Remain Remove Social Networks Customer Acquisition Easy and pleasurable Trusted relationships Young and the affluent Travel Publications Customer Retention trip planning Successful partnerships High disposable incomes Product Dev Best inventory Events (Parties!) Willing to explore Hotels Relationship with key Business Schools partners Convenient Brand awareness/ Young and single Travel agents Sourcing deals Experiential UI identification Divergent origins Airlines Lowest price Pilots Social media savvy Events Multiple options Cross pollination Deal listings Best Actionable deals Young couples Relevant locations Trendsetting behavior Car rentals Create a Community Promotion companies Social Validation Young families State Tourism Best education for kids Conventions (CES) Cultural experience Word of Mouth Trendy destinations Social Media Market understanding Human Capital Web and mail Relationship with Advertising partners Referrals Customer call centers Best in class product Magazines Human Capital Percentage of booking costs Product Development Advertising costs Percentage of hotel/package (s) Maintaining relationships Advertising revenues Refunds Event of the month Exclusive partnership with events

75. WEEK 2 – SOCIAL TRIP PLANNING Week 2 New Remain Remove Social Networks Customer Acquisition Easy and pleasurable Trusted relationships Young and the affluent Travel Publications Customer Retention trip planning Successful partnerships High disposable incomes Product Dev Best inventory Events (Parties!) Willing to explore Hotels Relationship with key Business Schools partners Convenient Brand awareness/ Young and single Travel agents Sourcing deals Experiential UI identification Divergent origins Airlines Lowest price Pilots Social media savvy Events Multiple options Cross pollination Deal listings Best Actionable deals Young couples Relevant locations Trendsetting behavior Car rentals Create a Community Promotion companies Social Validation Young families State Tourism Best education for kids Conventions (CES) Cultural experience Trendy destinations Word of Mouth Social Media Market understanding Human Capital Web and mail Relationship with Advertising partners Referrals Customer call centers Best in class product Magazines Human Capital Percentage of booking costs Product Development Advertising costs Percentage of hotel/package (s) Maintaining relationships Advertising revenues Refunds Event of the month Exclusive partnership with events

76. WEEK 2 – SOCIAL TRIP PLANNING Week 2 New Remain Remove Social Networks Customer Acquisition Easy and pleasurable Trusted relationships Young and the affluent Travel Publications Customer Retention trip planning Successful partnerships High disposable incomes What was the problem? Product Dev Best inventory Events (Parties!) Willing to explore Hotels Relationship with key Business Schools partners Convenient Brand awareness/ Young and single Travel agents Sourcing deals Experiential UI identification Divergent origins Airlines When research for potential partners, we learned of several existing Lowest price Pilots Social media savvy Events competitors with similar product Multiple options Cross pollination Deal listings Best Actionable deals Young couples Relevant locations Trendsetting behavior Car rentals  crowded Create a Community Promotion companies Social Validation Young families State Tourism Best education for kids  hypercompetitive Conventions (CES) Cultural experience Trendy destinations Word of Mouth Social Media Market understanding Human Capital Web and mail Relationship with

The startup owners manual sxsw

The startup owners manual sxsw

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The startup owners manual sxsw