Startups are different pt4

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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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