The document discusses the Customer Development methodology for startups as an alternative to the traditional Product Development model. It argues that Customer Development should be treated as equally important as Product Development from the beginning. The Customer Development process involves four steps: Customer Discovery, Customer Validation, Customer Creation, and Company Building. The goal at each step is to learn about customers through experiments and feedback rather than assume the business model is correct from the start.

1. The Customer Development Methodology Steve Blank [email_address]

3. Product Development Model Concept/ Seed Round Product Dev. Alpha/Beta Test Launch/ 1 st Ship

11. Build a Customer Development Process Customer Development ? ? ? ? Concept/ Seed Round Product Dev. Alpha/Beta Test Launch/ 1 st Ship Product Development

12. Customer Development is as important as Product Development Company Building Customer Development Customer Discovery Product Development Customer Validation Customer Creation Concept/ Bus. Plan Product Dev. Alpha/Beta Test Launch/ 1 st Ship

17. Sidebar How to Think About Opportunities

21. End of Sidebar

24. Sidebar Customer Development Engineering And Agile Development Methodologies

26. Problem: known Waterfall Unit of progress: Advance to Next Stage

27. Problem: known Waterfall Unit of progress: Advance to Next Stage Solution: known

28. Problem: known Solution: known Waterfall Unit of progress: Advance to Next Stage

30. Problem: known Agile (XP) “ Product Owner” or in-house customer Unit of progress: Working Software, Features

31. Problem: known Solution: unknown Agile (XP) “ Product Owner” or in-house customer Unit of progress: Working Software, Features

32. Problem: known Solution: unknown Agile (XP) “ Product Owner” or in-house customer Unit of progress: Working Software, Features

33. Problem: unknown Customer Development Engineering Unit of progress: Learning about Customers Hypotheses, experiments, insights

34. Problem: unknown Solution: unknown Customer Development Engineering Unit of progress: Learning about Customers Hypotheses, experiments, insights

35. Problem: unknown Solution: unknown Customer Development Engineering Unit of progress: Learning about Customers Hypotheses, experiments, insights

36. Problem: unknown Solution: unknown Customer Development Engineering Unit of progress: Learning about Customers Hypotheses, experiments, insights Data, feedback, insights

37. Problem: unknown Solution: unknown Customer Development Engineering Unit of progress: Learning about Customers Hypotheses, experiments, insights Data, feedback, insights Incremental, quick, minimum features, revenue/customer validation

42. End of Sidebar

46. Three Types of Markets New Market Resegmented Market Existing Market

59. A Plethora of Opportunities

61. Market Risk vs. Invention Risk

63. Execution: Lots to Worry About

65. Execution: Very Different by Vertical

66. Market Risk Reduction Strategy

67. Customer Development and the Business Plan

69. Business Plan Becomes the Funding Slides Fire Founders Concept Business Plan Seed or Series A Execute

72. “Lessons Learned” Drives Funding Concept Business Plan Lessons Learned Series A Do this first instead of fund raising Test Hypotheses

76. Further Reading Course Text at: www.cafepress.com/kandsranch or www.amazon.com