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Why Fighter Pilots Run Startups,[object Object],Steve Blank,[object Object],Stanford - School of Engineering,[object Object],U.C. Berkeley - Haas School Of  Business,[object Object],www.steveblank.com,[object Object],Twitter: sgblank,[object Object]
I Write a Blog  ,[object Object],www.steveblank.com,[object Object]
This Talk is Based On,[object Object],Business Model Generation,[object Object],Four Steps to the Epiphany,[object Object],The Lean Startup,[object Object]
The Life of an Entrepreneur,[object Object]
Top Gun dogfight scene,[object Object]
First -What’s A Startup?,[object Object],Six Types of Startups,[object Object]
Startup,[object Object],Lifestyle Startups Work to Live their Passion,[object Object],[object Object]
Get paid for their passion,[object Object]
Feed the family,[object Object]
Feed the family,[object Object]
99.7% of all companies
~ 50% of total U.S. workershttp://www.sba.gov/advo/stats/sbfaq.pdf,[object Object]
Scalable,[object Object],Startup,[object Object],Large Company,[object Object],Scalable Startup,[object Object],Search,[object Object],Goal is to solve for:,[object Object],  unknown customer and unknown features ,[object Object]
Execute,[object Object],Search,[object Object],Scalable,[object Object],Startup,[object Object],Large Company,[object Object],Exit Criteria,[object Object],[object Object]
 Total Available Market > €300m
 Can grow to €50/yearScalable StartupBorn to Be Big,[object Object]
Scalable,[object Object],Startup,[object Object],Large Company,[object Object],[object Object]
 Company can grow to $100m/year
 Business model found
 Focused on execution and process
 Typically requires “risk capital”Scalable StartupBorn to Be Big,[object Object],Execute,[object Object],Search,[object Object],[object Object]
 Typically needs risk capital
 What Silicon Valley means when they say “Startup”,[object Object]
 Professional Mgmt
 Process
 Beginning of scale,[object Object]
Buyable Startup,[object Object],Search,[object Object],Sell,[object Object],Scalable,[object Object],Startup,[object Object],€3 to e0M Acquisition,[object Object],Goal is to solve for:,[object Object],  Internet and Mobile Apps,[object Object],Sell to larger company,[object Object]
Scalable,[object Object],Startup,[object Object],Large Company,[object Object],[object Object]
 i.e. Product/Market fit- Repeatable sales model,[object Object],- Managers hired,[object Object],What’s A Startup?,[object Object],Search ,[object Object],Execute,[object Object],A Startup is a temporary organization used to search for a repeatable and scalable business model ,[object Object]
Venture Firms Invest in Scalable and BuyableStartups,[object Object],Small Business,[object Object],Startup,[object Object],Scalable,[object Object],Startup,[object Object],Large Company,[object Object]
Large Company Sustaining InnovationInnovate or Evaporate,[object Object],Sustaining Innovation,[object Object],Transition,[object Object],Scalable,[object Object],Startup,[object Object],Large Company,[object Object],[object Object]
Known product feature needs,[object Object]
New tech, customers, channels,[object Object]
Partner
Acquire      - IP- Talent,[object Object],      - Product,[object Object],      - Customers,[object Object],      - Business,[object Object]
Large Non-Profit,[object Object],Social Startup,[object Object],Social Entrepreneurship Startups,[object Object],[object Object]
Social Enterprise: Profitable
Social Innovation: New Strategies,[object Object]
Startups Search and Pivot,[object Object],The Search for the Business Model,[object Object],Scalable,[object Object],Startup,[object Object],Transition,[object Object],Large Company,[object Object],Searching for the Business Model,[object Object],[object Object],   i.e. Product/Market fit,[object Object],[object Object]
 Repeatable sales model,[object Object]
 Product/Market fit- Repeatable sales model,[object Object],- Managers hired,[object Object],Executing a known Business Model,[object Object],[object Object]
 Profitable~ 150 people,[object Object]
Metrics Versus Accounting,[object Object],The Execution of the Business Model,[object Object],Scalable,[object Object],Startup,[object Object],Transition,[object Object],Large,[object Object],Company,[object Object],Traditional Accounting,[object Object],[object Object]
 Cash Flow Statement
 Income Statement,[object Object]
 Viral coefficient
 Customer Lifetime Value
 Average Selling Price/Order Size
 Monthly burn rate
 etc.   Traditional Accounting,[object Object],[object Object]
 Cash Flow Statement
 Income Statement,[object Object]
 Scalable
 Price List/Data Sheets
 Revenue Plan,[object Object]
 Pricing/Feature unstable
 Not yet repeatable
“One-off’s”Sales,[object Object],[object Object]
 Scalable
 Price List/Data Sheets
 Revenue Plan,[object Object]
 Waterfall Development
 QA
 Tech Pubs,[object Object]
 Waterfall Development
 QA
 Tech PubsAgile Development,[object Object],[object Object]
 Continuous Learning
 Self Organizing Teams
 Minimum Feature Set
 Pivots,[object Object]
 Known features for line extensions
 Known customers/markets
 Known business model,[object Object]
 Unknown business model
 Model found by iteration
Plan describes “knowns”
 Known features for line extensions
 Known customers/markets
 Known business model,[object Object]
Product Introduction Model,[object Object],Concept/Seed Round,[object Object],Product Dev.,[object Object],Alpha/Beta Test,[object Object],Launch/,[object Object],1st Ship,[object Object]
Product Introduction Model,[object Object],The Leading Cause of Startup Death,[object Object],Concept/Seed Round,[object Object],Product Dev.,[object Object],Alpha/Beta Test,[object Object],Launch/,[object Object],1st Ship,[object Object]
Product Introduction Model:Two Implicit Assumptions,[object Object],Customer Problem: known,[object Object],Concept/Seed Round,[object Object],Product Dev.,[object Object],Alpha/Beta Test,[object Object],Launch/,[object Object],1st Ship,[object Object],	Product Features: known,[object Object]
Tradition – Hire Marketing,[object Object],Concept/Seed Round,[object Object],Product Dev.,[object Object],Alpha/Beta Test,[object Object],Launch/,[object Object],1st Ship,[object Object],- Create Demand,[object Object],- Launch Event,[object Object],- “Branding”,[object Object],- Hire PR Agency,[object Object],- Early Buzz,[object Object],[object Object],  Materials,[object Object],- Create Positioning,[object Object],Marketing,[object Object]
Tradition – Hire Sales,[object Object],Concept/Seed Round,[object Object],Product Dev.,[object Object],Alpha/Beta Test,[object Object],Launch/,[object Object],1st Ship,[object Object],- Create Demand,[object Object],- Launch Event,[object Object],- “Branding”,[object Object],- Hire PR Agency,[object Object],- Early Buzz,[object Object],[object Object],  Materials,[object Object],- Create Positioning,[object Object],Marketing,[object Object],[object Object]
 Hire Sales VP
 Hire 1st  Sales StaffSales,[object Object]
Tradition – Hire Bus Development,[object Object],Concept,[object Object],Product Dev.,[object Object],Alpha/Beta Test,[object Object],Launch/,[object Object],1st Ship,[object Object],- Create Demand,[object Object],- Launch Event,[object Object],- “Branding”,[object Object],- Hire PR Agency,[object Object],- Early Buzz,[object Object],[object Object],  Materials,[object Object],- Create Positioning,[object Object],Marketing,[object Object],[object Object]
 Hire Sales VP
 Pick distribution   ChannelSales,[object Object],Business ,[object Object],Development,[object Object],[object Object]
 Do deals for FCS,[object Object]
 Hire Sales VP
 Pick distribution   ChannelSales,[object Object],Business ,[object Object],Development,[object Object],[object Object]
 Do deals for FCSEngineering,[object Object],[object Object]
 Waterfall
 Q/A
Tech Pubs,[object Object]
Then why do we have:,[object Object],process to manage product development?,[object Object]
Then why do we have:,[object Object],process to manage product development?,[object Object],no process to manage customer development?,[object Object]
No Business Plan survives first contact with customers,[object Object]
So Search for a Business Model,[object Object]
The Business Model:,[object Object],Any company can be described in 9 building blocks,[object Object]

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