The document discusses the importance of market validation for startups. It notes that 90% of startups fail due to not finding the right market and customers, rather than due to bad products. It emphasizes that market research is different from market validation. Successful startups structure their process around customer development to test their assumptions and hit product-market fit milestones. The document recommends that startups stop selling, start listening to potential customer segments, and let customers identify their own problems in order to develop repeatable sales and scale their companies effectively.
4. Some stats…
Source: Startup Genome (http://startupgenome.cc)
5. High stakes…
90% of start-ups fail not because of bad
product, but because they don't find the
right market and customer.
6. Ouch…
Market research is not the same as market validation
No business plan survives the first customer contact…
Structure and process around customer development
were critical to hit product/market fit milestone
Plan, pitch, etc., was all about building a company,
but was really lacked attention on building customers,
aka, market validation
7. Product Dev AND Market Validation
Product Development
Customer Development
Source: Steve Blank’s Customer Development Model
10. Market Validation
Stop selling, start listening
Let customer segments tell you their problems – what
does a day in their life look like
Do they agree you solve
How much will they pay to solve.
Source: Steve Blank’s Customer Development Model
11. Repeatable Sales
Scale your
marketing
Source: Steve Blank’s Customer Development Model
12. Scale the company
Build your org
structures
Source: Steve Blank’s Customer Development Model
13. So the $3M Lessons?
Market research IS NOT market validation
No product/biz plan survives 1 customer interaction
st
Test & refine every one of your guesses by learning
everything you can about your customers
Don’t scale it ‘til you nail it
14. More resources…
Eric Reis | Lean Startup
Steve Blank | 4 Steps to the Epiphany
Alexander Osterwaldert | Business Model Generation
Ron Neuman | VistaShift
15. Thank You
Robin Hopper
Email: robin.hopper@gmail.com
Twitter: @rhopper
LinkedIn: http://ca.linkedin.com/in/robinhopper
Notas do Editor
Market Validation Keynote… 15 mins… 7:30
In tough economic times, it is important to remember that 90 percent of Silicon Valley's start-ups fail not because of bad product, but because they don't find the right market and customer. The statistics are disheartening no matter how an entrepreneur defines failure: If failure means liquidating all assets, with investors losing most or all the money they put into the company, then the failure rate for start-ups is 30 to 40 percent If failure refers to failing to see the projected return on investment, then the failure rate is 70 to 80 percent If failure is defined as declaring a projection and then falling short of meeting it, then the failure rate is a whopping 90 to 95 percent http://greenhornconnect.com/blog/how-structure-and-get-most-out-customer-development-interviews