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Customer Development

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Customer Development

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Lawrence Wright, serial entrepreneur

Лекция Лоренса Райта, серийного предпринимателя, основателя Стартап Академии Сколково и основателя компании GVA LaunchGurus для Startup Bootcamp 4-6 ноября 2015 года, интенсивной программы для начинающих предпринимателей

Lawrence Wright, serial entrepreneur

Лекция Лоренса Райта, серийного предпринимателя, основателя Стартап Академии Сколково и основателя компании GVA LaunchGurus для Startup Bootcamp 4-6 ноября 2015 года, интенсивной программы для начинающих предпринимателей

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Customer Development

  1. 1. The Lean Startup or Customer Development Startup Bootcamp, 2015
  2. 2. There is nothing like the thrill of starting your OWN business and not working for someone else!
  3. 3. The odds are very much against your success We want to reduce the risk of failure And provide a method to help you and your team build a strong, enduring company! …What really matters most: GREAT companies with long-term potential Excited CUSTOMERS who tell their friends Почему мы тут?
  4. 4.  Many thousands of startups  Startup Academy…8 times  USA National Science Foundation  250+ leading Universities  Many major corporations Это доказано!
  5. 5. More startups fail from a lack of customers than from a failure of product development Steve Blank
  6. 6. Very simple business math: 0 customers= 0 business!
  7. 7. Давайте познакомимся • Интрапренер (SAIC, Inc. 92 - 2002) • Инвестор в инновационных проектах (ISTC 2002 - 05) • Стартап предприниматель /бизнес-ангел (New Realm Investments, Solid Power Batteries, Xlerate Technologies 2005 - 2011) • Профессор практики /Директор Стартап Академии (СКОЛКОВО 2011 – 2014 ) • Со-основатель/CEO LaunchGurus (2014 - …)
  8. 8. 500 startup mistakes in 608 pages….
  9. 9. We’ve learned a lot about entrepreneurship
  10. 10. 10 Company name | XX Month Year 10
  11. 11. What We Used to Believe
  12. 12. Startups are a Smaller Version of a Large Company
  13. 13. What We Now Know
  14. 14. Startups Search Companies Execute
  15. 15. Startups are About Vision & Ideas, sweat and luck
  16. 16. What We Now Know
  17. 17. Most visions are very blurry at best …and entrepreneurs “make” their own luck!
  18. 18. What We Used to Believe Strategy
  19. 19. Start With a Business Plan and a Financial Model
  20. 20. 20 Company name | XX Month Year All You Need to Do is Execute the Plan
  21. 21. 21 Company name | XX Month Year And You Need to Make the Forecast
  22. 22. 22 Company name | XX Month Year All You Need to Do: Execute the Plan
  23. 23. No Business Plan survives first contact with customers …Steve Blank, 2003
  24. 24. Planning comes before the plan
  25. 25. 25 Company name | XX Month Year Что такой «стартап»? A Startup is a temporary organization used to search for a • repeatable, • scalable, and • profitable business model
  26. 26. …So SEARCH for the Busines Model
  27. 27. The Business Model: Any company can be described in 9 building blocks
  28. 28. 28 Company name | XX Month Year customer segments key partners cost structure revenue streams channels customer relationships key activities key resources value proposition
  29. 29. But, Realize They’re Hypotheses
  30. 30. 30 Company name | XX Month Year 9 Guesses Guess Guess Guess Guess Guess Guess Guess GuessGuess
  31. 31. 31 Company name | XX Month Year Our Guesses DON’T Matter  Anybody can build almost anything today (just a few exceptions: anti-gravity, transporters)  What we need are CUSTOMERS!!  Build the customers while building product  …and let customer feedback and your coach guide you all the way through the process!  note: Clones may be different!
  32. 32. 32 Company name | XX Month Year Customer Development
  33. 33. Get Out of the Building Customer Development The founders
  34. 34. 34 Company name | XX Month Year Customer Development: The Search For the Business Model Company Building Customer Discovery Customer Validation Customer Creation Pivot
  35. 35. 35 Company name | XX Month Year  Stop selling, start listening  Test your hypotheses  Continuous Discovery  Done by founders Step 1: Customer Discovery Customer Discovery Customer Validation Company Building Customer Creation
  36. 36. 36 Company name | XX Month Year TWO key Discovery phases  FIRST: Does anybody care? …are we solving a serious problem? …are we filling a “big” need?  THEN: Does our product do the job? …do they grab it out of your hands? …are they eager to tell their friends?
  37. 37. 37 Company name | XX Month Year Where it begins: Minimum Viable Product (MVP) • Smallest feature set that gets you the most … orders, learning, feedback, failure… • MVP + Customer are the first two you need to nail • MVP is just 1 of the 9 parts of your model
  38. 38. 38 Company name | XX Month Year What’s a Minimum Viable Product?  Google without ads  Zappos without inventory  Diapers.com without diapers …Fewest possible features to make the point! …Why? It’s hard to truly react to a powerpoint
  39. 39. 39 Company name | XX Month Year Discovery: Not just “do you like it?”  How big is the market? Not today…eventually!  Who’s the customer?  What’s their problem/need  What’s the product/service/need?  Does it solve the customer’s problem?  How do you create demand?  How do you deliver the product?  How do you make money?
  40. 40. 40 Company name | XX Month Year The Pivot  The heart of Customer Development  Iteration without crisis  Fast, agile and opportunistic
  41. 41. 41 Company name | XX Month Year Pivot Cycle Time Matters  Speed of cycle minimizes cash needs  Minimum feature set speeds up cycle time  Near instantaneous customer feedback drives feature set Customer Discovery Customer Validation Company Building Customer Creation ExecutionSearch Pivot
  42. 42. 42 Company name | XX Month Year Web/Mobile Versus Physical  Web/Mobile startups run faster  Different process steps for web vs. physical  Customer Relationships are radically different Customer Discovery Customer Validation Pivot
  43. 43. Putting Discovery to Work
  44. 44. 44 Company name | XX Month Year I Have a Meeting – Now What?  The goal is to test all hypotheses, but first: have you found “product/market fit”  Does the customer care?  How do they solve this problem TODAY?  What channel do they use to buy?  Where will they go to find you?  How will you create demand?  How much will they pay? Do they pay today?
  45. 45. 45 Company name | XX Month Year TWO key Discovery phases • FIRST: Does anybody care? …are we solving a serious problem? …are we filling a “big” need?
  46. 46. 46 Company name | XX Month Year TWO key Discovery phases • FIRST: Does anybody care? …are we solving a serious problem? …are we filling a “big” need? • THEN: Does our product do the job? …do they grab it out of your hands? …are they eager to tell their friends?
  47. 47. HINT: YOUR VC PITCH WAS HIDING IN THE LAST 12 SLIDES…DISCOVERY When Customer Discovery is Done: Time to Ask for Money!
  48. 48. 48 Company name | XX Month Year always remember rule #1: NO SELLING ALLOWED
  49. 49. 49 Company name | XX Month Year … and Rule #2: You’re Hypothesis Testing!
  50. 50. 50 Company name | XX Month Year How do you know when Discovery is “done?” Key Partners Who are our key partners/ suppliers Key Activities Which key activities does the biz model require Value Proposition What value do we deliver to the customer Customer Relationships What type of relationship does each segment require of us Customer Segments For whom are we creating value Channels Through which channel does each segment want to be reached Revenue Streams How much is each segment willing to pay and how would they like to pay us this amount Cost Structure What are our cost drivers Key Resources Which key resources does the biz model require  identify key market segments (geography/application) and customer segments (e.g. operator versus owner)  how many customers in each segment and estimated potential volume for each customer  how do customers make money … key customer pain/gain points in each segment  how are buying decisions made in each segment - id process, hurdles, decision makers  what does an Earlyvangelist look like in each segment  who influences purchases in each segment (trade groups, key resellers, trend watchers)  key distinctive product features & benefits for the target customer segment  total cost of ownership for segment versus alternatives  why will segment buy Durathon versus alternatives (i.e. value proposition)  minimum feature set (i.e. our launch configuration) and ultimate feature set  opportunities to claim IP or trademark / is there freedom to practice  what regulatory/ certification/ transportation/ customs requirements should be met or could be differentiator  which segments can only or best be reached through a channel partner  which channel partners are important to optimize sales in each segment  what are channel partners' requirements and cost to become a proactive sales channel  initial channel partner response to value proposition & customer segments  What are price /performance characteristics of competing technology  What is the 2013 price target for 1 MM cells  What is the 2015 price target for 10 MM cells  what is optimum sales method for each segment (asset sale, lease, pay for performance, etc.)  product positioning/elevator pitch for each segment  Prospect roadmap: how to get face- to-face with right person at prospects in each segment  key competitors in each segment and their market share  key competitors' characteristics & dynamics  What outbound marketing/ advertising/ promotion activities are needed  support tools required by segment (white papers, TCO calc., tradeshow)  pipeline of leads x x x X = number of in depth customer data points / data sources used to validate hypothesis red = low hypothesis confidence yellow = medium hypothesis confidence green = high hypothesis confidence 25 25 4 50 3 Complete regional overview 12  Populate life cycle data for performance guarantees  Educate market on metric: $/kWh-day delivered over life of asset  Establish strong partnerships with channel partners  Integrated power system engineering – compatibility for retrofit and optimized system solutions  Financing options for Power services operators  Launch reliability 0
  51. 51. 51 Company name | XX Month Year 3 Questions to “DONE:”
  52. 52. 52 Company name | XX Month Year Customer Validation Customer Discovery Customer Validation Customer Creation Company Building • Repeatable, scalable profitable? • Passionate first paying customers? • Pivot back to Discovery if not! Pivot Execution Search
  53. 53. 53 Company name | XX Month Year Validation is VERY DIFFERENT • “Test selling” vs search and exploration • Is the business “repeatable, scalable” • Do the “ratios hold up” as you accelerate • Is it a “Pachinko machine” yet?
  54. 54. Вопросы?
  55. 55. For more details contact: Lawrence Wright +7 (916) 555-0980 Lwright@gvalg.com Skype: wrightal4 Follow us! Twitter: @launchgurus Facebook: launchgurus Launch-gurus.com Thanks to Bob Dorf for the slides

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