Henrik Berglund - WS - Startup Camp 2013
-
Upload
henrik-berglund -
Category
Business
-
view
3.830 -
download
6
description
Transcript of Henrik Berglund - WS - Startup Camp 2013
![Page 1: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/1.jpg)
Henrik Berglund Chalmers University of Technology Center for Business Innova8on
[email protected] www.henrikberglund.com
@khberglund
Business Models +
Customer Development
2013-‐02-‐15 1
![Page 2: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/2.jpg)
by Steve Blank and Bob Dorf
More info: www.steveblank.com Buy the book: hJp://www.amazon.com/gp/product/0984999302/
Presenta8on based on
![Page 3: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/3.jpg)
developed by Steve Blank and Bob Dorf
hJp://www.slideshare.net/sblank/
Using slides from
![Page 4: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/4.jpg)
Agenda
1. Startups 2. Business Models (briefly) 3. Customer Development
![Page 5: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/5.jpg)
Part 1
Startups (What We Used to Believe What We Now Know)
![Page 6: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/6.jpg)
What We Used to Believe
![Page 7: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/7.jpg)
Startups are a Smaller Version of a Large Company
![Page 8: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/8.jpg)
What We Now Know
![Page 9: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/9.jpg)
Startups ≠ Small companies
![Page 10: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/10.jpg)
Startups Search Companies Execute
![Page 11: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/11.jpg)
What We Used to Believe
Strategy
![Page 12: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/12.jpg)
Start by developing a Business Plan…
![Page 13: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/13.jpg)
…make the financial forecasts…
![Page 14: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/14.jpg)
…then Execute
![Page 15: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/15.jpg)
What We Now Know
Strategy
![Page 16: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/16.jpg)
5-‐Year Plans
![Page 17: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/17.jpg)
Develop and Execute the Business Plan
![Page 18: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/18.jpg)
Why?
![Page 19: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/19.jpg)
No Business Plan survives first contact with customers
![Page 20: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/20.jpg)
“Everybody has a plan un@l they get punched in the face” Mike Tyson
![Page 21: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/21.jpg)
Searching for a Business Model comes before
Executing a business plan
![Page 22: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/22.jpg)
Key activities Value proposition
Customer relationships
Customer segments
Cost structure
Key resources
Revenue streams
Channels
Key partners
Business Models
hJp://www.businessmodelalchemist.com/
![Page 23: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/23.jpg)
Business Model Hypotheses
Search
Strategy
Execu@on
Opera@ng Plan + Financial Model
![Page 24: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/24.jpg)
What We Used to Believe
Process
![Page 25: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/25.jpg)
We Built Startups by Managing Processes
Product Management +
Waterfall Engineering
![Page 26: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/26.jpg)
Tradi8onal Development Process
Concept Product Dev. Alpha/Beta Test
Launch/ 1st Ship
![Page 27: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/27.jpg)
Tradi8onal Development Process Has Two Implicit Assump8ons
Concept Product Dev. Alpha/Beta Test
Launch/ 1st Ship
Customer Problem: known
Product Features: known
Works well for incremental development projects targe@ng exis@ng customers.
![Page 28: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/28.jpg)
Tradi8on – Hire Marke8ng
-‐ Create Marcom Materials -‐ Create Posi@oning
-‐ Hire PR Agency -‐ Early Buzz
-‐ Create Demand -‐ Launch Event -‐ “Branding”
Marke@ng
Concept Product Dev. Alpha/Beta Test
Launch/ 1st Ship
![Page 29: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/29.jpg)
Tradi8on – Hire Sales
-‐ Create Marcom Materials -‐ Create Posi@oning
-‐ Hire PR Agency -‐ Early Buzz
-‐ Create Demand -‐ Launch Event -‐ “Branding”
-‐ Build Sales Organiza@on
Marke@ng
Sales -‐ Hire Sales VP -‐ Hire 1st Sales Staff
Concept Product Dev. Alpha/Beta Test
Launch/ 1st Ship
![Page 30: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/30.jpg)
Tradi8on – Hire Business Development
-‐ Create Marcom Materials -‐ Create Posi@oning
-‐ Hire PR Agency -‐ Early Buzz
-‐ Create Demand -‐ Launch Event -‐ “Branding”
-‐ Build Sales Organiza@on
Marke@ng
Sales -‐ Hire Sales VP -‐ Hire 1st Sales Staff
Concept Product Dev. Alpha/Beta Test
Launch/ 1st Ship
-‐ Hire First Bus Dev -‐ Do deals for FCS Business Development
![Page 31: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/31.jpg)
Examples -‐ Recognize these?
![Page 32: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/32.jpg)
What’s wrong with this picture?
• Both Customer Problems and Product Features are hypotheses
• Emphasis on execu8on rather than learning and discovery
• No relevant milestones for marke8ng and sales • Oeen leads to premature scaling and a heavy spending hit if product launch fails
You do not know if you are wrong un@l you are out of money/business
Concept Product Dev. Alpha/Beta Test
Launch/ 1st Ship
![Page 33: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/33.jpg)
-‐ Create Marcom Materials -‐ Create Posi@oning
-‐ Hire PR Agency -‐ Early Buzz
-‐ Create Demand -‐ Launch Event -‐ “Branding”
-‐ Build Sales Organiza@on
Marke@ng
Sales -‐ Hire Sales VP -‐ Hire 1st Sales Staff
Concept Product Dev. Alpha/Beta Test
Launch/ 1st Ship
-‐ Hire First Bus Dev -‐ Do deals for FCS Business Development
![Page 34: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/34.jpg)
What We Now Know
Process
![Page 35: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/35.jpg)
Product and Customer Development
Product Development
Customer Development
Company Building
Customer Discovery
Customer Validation
Customer Creation
+
Concept Product Dev. Alpha/Beta Test
Launch/ 1st Ship
![Page 36: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/36.jpg)
Problem: unknown Solu8on: unknown
Product and Customer Development
![Page 37: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/37.jpg)
Business Model Hypotheses
Strategy
Process Customer & Agile Development
Opera8ng Plan + Financial Model
Product Management & Waterfall Development
Search Execu@on
![Page 38: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/38.jpg)
What We Used to Believe
Organiza@on
![Page 39: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/39.jpg)
Hire and Build a Functional Organization
![Page 40: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/40.jpg)
![Page 41: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/41.jpg)
![Page 42: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/42.jpg)
What We Now Know
Organiza@on
![Page 43: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/43.jpg)
Founders run a Customer Development Team
No sales, marketing and business
development
![Page 44: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/44.jpg)
Business Model Hypotheses
Organiza@on Customer
Development Team, Founder-‐driven
Customer Development, Agile Development
Opera8ng Plan + Financial Model
Product Management Agile or Waterfall Development
Func@onal Organiza@on by Department
Search Execu@on Strategy
Process
![Page 45: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/45.jpg)
Part 2
Business Models
![Page 46: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/46.jpg)
Key activities Value proposition
Customer relationships
Customer segments
Cost structure
Key resources
Revenue streams
Channels
Key partners
Business Model
hJp://www.businessmodelalchemist.com/
![Page 47: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/47.jpg)
Key activities Value proposition
Customer relationships
Customer segments
Cost structure
Key resources
Revenue streams
Channels
Key partners
Business Model
A framework for making your assump@ons explicit
![Page 48: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/48.jpg)
Customer Segments Who are the customers? Why would they buy?
![Page 49: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/49.jpg)
Customer Segments
Who is the customer? Mul8-‐sided market? Different from user?
hJp://www.businessmodelalchemist.com/2012/08/achieve-‐product-‐market-‐fit-‐with-‐our-‐brand-‐new-‐value-‐proposi8on-‐designer.html
![Page 50: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/50.jpg)
Customer Segments -‐ jobs to be done
What func8onal jobs is your customer trying get done? (e.g. perform or complete a specific task, solve a specific problem…) What social jobs is your customer trying to get done? (e.g. trying to look good, gain power or status…) What emo8onal jobs is your customer trying get done? (e.g. esthe8cs, feel good, security…)
“What jobs are the customers you are targe2ng trying to get done”
![Page 51: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/51.jpg)
Customer Segments -‐ customer pains
What does your customer find too costly? (e.g. takes a lot of 8me, costs, effort) What makes your customer feel bad? (e.g. frustra8ons, annoyances) How are current solu8ons under-‐performing for your customer? (e.g. lack of features, performance, malfunc8on) What nega8ve social consequences does your customer encounter or fear? (e.g. loss of face, power, trust, or status)
“What are the costs, nega2ve emo2ons, bad situa2ons etc. that your customer risks experiencing before, during, and a>er ge?ng the job done.”
![Page 52: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/52.jpg)
Customer Segments -‐ customer gains
Which savings would make your customer happy? (e.g. in terms of 8me, money and effort) What would make your customer’s job or life easier? (e.g. flaJer learning curve, more services, lower cost of ownership) What posi8ve social consequences does your customer desire? (e.g. makes them look good, increase in power, status) What are customers looking for? (e.g. good design, guarantees, features) What do customers dream about? (e.g. big achievements, big reliefs)
“What are the benefits your customer expects, desires or would be surprised by.”
![Page 53: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/53.jpg)
Value Proposi@ons What are you building? For whom?
![Page 54: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/54.jpg)
Value Proposi@ons
What are your products and services? How do they create value for the customer segments?
![Page 55: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/55.jpg)
Value Proposi@ons Can your product/service: • Produce savings?
• Make your customers feel beJer?
• Put an end to difficul8es?
• Wipe out nega8ve social consequences?
![Page 56: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/56.jpg)
Value Proposi@ons Can your product/service: • Outperform current
solu8ons?
• Produce outcomes that go beyond their expecta8ons?
• Make your customer’s job or life easier?
• Create posi8ve social consequences?
![Page 57: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/57.jpg)
Product Market Fit Genng this right is essen8al!
![Page 58: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/58.jpg)
Product Market Fit Genng this right is essen8al!
![Page 59: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/59.jpg)
Channels How does your product get to customers?
![Page 60: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/60.jpg)
How Do You Want Your Product to Get to Your Customer?
60
Yourself
Through someone else
Retail
Wholesale
Bundled with other goods or services
"""""
![Page 61: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/61.jpg)
Web Channels
61
![Page 62: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/62.jpg)
Physical Channels
62
![Page 63: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/63.jpg)
How Does Your Customer Want to Buy Your Product from your Channel?
63
• Same day
• Delivered and installed
• Downloaded
• Bundled with other products
• As a service
• …
""""""
![Page 64: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/64.jpg)
Customer Rela@onships How do you get/keep/grow customers?
![Page 65: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/65.jpg)
Customer Rela@onships
![Page 66: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/66.jpg)
Revenue Streams How do you make money?
![Page 67: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/67.jpg)
Key Resources What are your most important assets?
![Page 68: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/68.jpg)
Key Ac@vi@es What ac8vi8es are most important for the business?
![Page 69: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/69.jpg)
Key Partnerships Who are your key partners and suppliers?
![Page 70: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/70.jpg)
Cost Structure What are the costs of opera8ng the business model?
![Page 71: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/71.jpg)
Visualiza@on of the business model
framwork
Key activities Value proposition
Customer relationships
Customer segments
Cost structure
Key resources
Revenue streams
Channels
Key partners
![Page 72: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/72.jpg)
![Page 73: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/73.jpg)
What’s a Company?
![Page 74: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/74.jpg)
What’s a Company?
A business organiza@on, which sells a product or service in exchange for revenue
and profit
![Page 75: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/75.jpg)
How are Companies organized?
![Page 76: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/76.jpg)
How are Companies organized?
Companies are organized around Business Models
![Page 77: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/77.jpg)
How are Companies organized?
Companies are organized around Business Models
![Page 78: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/78.jpg)
What’s a Startup?
![Page 79: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/79.jpg)
What’s a Startup?
A temporary organiza8on designed to search
for a repeatable and scalable business model
![Page 80: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/80.jpg)
What’s a Startup?
A temporary organiza8on designed to search
for a repeatable and scalable business model
![Page 81: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/81.jpg)
What’s a Startup?
A temporary organiza8on designed to search
for a repeatable and scalable business model
![Page 82: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/82.jpg)
Guess Guess
Guess
Guess
Guess
Guess
Guess
Guess Guess
![Page 83: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/83.jpg)
The goal is not to remain a startup
Startup Large Company
The goal of a startup is to become a large company! Failure = failure to transi@on.
Transi@on
![Page 84: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/84.jpg)
Part 3
Customer Development
![Page 85: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/85.jpg)
To repeat
![Page 86: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/86.jpg)
More startups fail from a lack of customers than from a failure of product development…
To repeat
![Page 87: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/87.jpg)
… because they think startups = small companies…
![Page 88: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/88.jpg)
…they focus on execu8ng the plan…
• Both Customer Problems and Product Features are hypotheses
• Emphasis on execu8on rather than learning and discovery
• No relevant milestones for marke8ng and sales • Oeen leads to premature scaling and a heavy spending hit if product launch fails
You do not know if you are wrong un@l you are out of money/business
Concept Product Dev. Alpha/Beta Test
Launch/ 1st Ship
![Page 89: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/89.jpg)
… so they scale on untested assump8ons…
![Page 90: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/90.jpg)
… and end up going bust.
“We have been too visionary. We wanted everything to be perfect, and we have not had control of costs" Ernst Malmsten (BBC News, May 18 2000)
![Page 91: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/91.jpg)
So what to do?
![Page 92: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/92.jpg)
![Page 93: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/93.jpg)
Customer Development: Key Ideas
• Parallel process to Product Development (agile)
• Measurable checkpoints not @ed to FCS but to customer insights
• Emphasis on itera@ve learning and discovery before execu@on
• Must be done by small team including CEO/project leader
![Page 94: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/94.jpg)
Customer Development Heuris8cs
• There are no facts inside, so get out of the building! • Earlyvangelists make your company, and are smarter than you!
• Develop a minimum viable product to maximize fast learning.
![Page 95: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/95.jpg)
• Customer Discovery Ar8culate and Test your Business Model Hypotheses
• Customer Valida@on Sell your MVP and Validate your MB & Sales Roadmap
• Customer Crea@on Scale via relentless execu8on and fill the sales pipeline
• Company Building (Re)build company’s organiza8on & management
Customer Development: Four Stages search
execu8on
![Page 96: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/96.jpg)
Customer Discovery
• Articulate and test your BM hypotheses (value prop/customers key)
• No selling, just listening • Must be done by founder
![Page 97: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/97.jpg)
building block
building block
building block
building block
building block
building block
building block
building block
building block
building block
building block
building block
![Page 98: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/98.jpg)
But, Realize it’s just Hypotheses!
![Page 99: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/99.jpg)
Guess Guess
Guess
Guess
Guess
Guess
Guess
Guess Guess
![Page 100: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/100.jpg)
![Page 101: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/101.jpg)
![Page 102: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/102.jpg)
”Do you have this problem?” 1. 2. 3.
Test Customer Problem Hypotheses
![Page 103: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/103.jpg)
”Do you have this ”Tell me about it, how problem?” do you solve it today?” 1. 1. 2. 2. 3. 3.
Test Customer Problem Hypotheses
![Page 104: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/104.jpg)
”Do you have this ”Tell me about it, how ”Does something like this problem?” do you solve it today?” solve your problem?” 1. 1. 1. 2. 2. 2. 3. 3. 3.
Listen carefully to what they say at each step! Focus on learning -‐ Don’t try to sell them on your idea! In the process you find out about other BM parts as well: workflow, benefits (to users & others), preferred channels, cri@cal influencers, respected peers etc… You want to become a domain expert!
Test Customer Problem Hypotheses
![Page 105: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/105.jpg)
Finding people
Introduc8ons (ask everyone you know) • Provide the exact text that they can copy and paste into
a tweet or email (They’re doing you a favor! Make it as easy as possible for them)
• Tell them exactly how you are going to communicate with their contacts (They’re risking a bit of social capital for you. Be very clear that you won’t spam or annoy people)
• Tell them your goals (What do you think you’ll get/learn if they make this intro for you? People want to know that they’re contribu8ng to a bigger picture!)
![Page 106: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/106.jpg)
Finding people
AdWords, Facebook Ads, Promoted Tweets Summarize your idea and get it in front of people who have expressed an interest in it by having searched for your keywords and clicked your ad – get conversa8ons (and/or test hypotheses using landing pages).
hJp://www.cindyalvarez.com/best-‐prac8ces/customer-‐development-‐interviews-‐how-‐to-‐finding-‐people
![Page 107: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/107.jpg)
Finding people
TwiJer Search Look for people who have already discussed a similar product, problem, or solu8on and address a tweet directly to them:
“@username Would love yr feedback on [product/problem/solu2on] – shd only take 2mins [URL] thanks!”
![Page 108: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/108.jpg)
Finding people
Google Alerts Set up Google Alerts for your product/problem/solu8on – when it finds relevant blog posts or comments, email and ask for feedback:
“I read your [post/comment] about [product/problem/solu2on]. I’m currently working on a related idea and I think your opinion would be very valuable to me – could you take 2 minutes and check out [URL]? Thank you – I’d be happy to return the favor any 2me.”
![Page 109: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/109.jpg)
Interview 8ps
hJp://www.giffconstable.com/2011/07/12-‐8ps-‐for-‐customer-‐development-‐interviews-‐revised/
![Page 110: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/110.jpg)
Much faster to build => get quan8ta8ve feedback sooner. Use a low-‐fi landing page as subs8tute for – and introduc8on to – conversa8ons. Key to drive traffic through AdWords/Facebook Ads/Promoted Tweets etc. Build (design test), measure (run test) and analyze (evaluate test)!
Web
![Page 111: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/111.jpg)
hJp://blog.kissmetrics.com/landing-‐page-‐blueprint/
Landing page design
![Page 112: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/112.jpg)
![Page 113: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/113.jpg)
Reality check!
CustDev and ProdDev teams meet and discuss the lessons learned from the field.
”Here is what we thought about customers and their problems, here is what we found out”
BM hypotheses, product specs or both are jointly revised.
![Page 114: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/114.jpg)
Test Solu8on Hypothesis
1) ”We believe you have this important problem” – listen (check). 2) Demo how your product solves the problem. Focusing on a few key features. Include workflow story: ”life before our product” and ”life aeer our product” – listen! 3) ”What would this solu8on need to have for you to purchase it?” Listen, ask follow up ques8ons.
![Page 115: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/115.jpg)
![Page 116: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/116.jpg)
Dropbox
• 1st solu8on test: a three minute video made in the founder’s apartment before a complete code was wriJen. – Generated valuable feedback from visionary customers.
• 2nd solu8on test: another video of the product that was posted on a social network. – Wai8ng list jumped from 5 000 to 75 000.
• Dropbox’s original intent was to build and ship their product in eight weeks.
• Instead, they gathered feedback and launched a public version 18 months later.
![Page 117: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/117.jpg)
![Page 118: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/118.jpg)
Test Product Hypotheses
Aeer demoing, ask about other things: Posi8oning – how do they describe the product? Product category (new, exis8ng, resegmented) Compe8tors Features needed for first version Preferred revenue model Pricing Addi8onal service needs Marke8ng – how do they find this type of product? Purchasing process Who has a budget? etc.
![Page 119: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/119.jpg)
Build out a high-‐fidelity web page with “func8oning” back-‐end, based on lessons learned. “Mechanical Turk”-‐solu8on. Ask for money: first “pre-‐order” then charging. Con8nue to test, measure and analyze!
Web
![Page 120: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/120.jpg)
![Page 121: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/121.jpg)
Reality check!
CustDev and ProdDev teams meet and discuss the lessons learned.
”Here is what we thought about product features and here is what we found out”
BM hypotheses, product specs or both are again jointly revised.
![Page 122: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/122.jpg)
What are your customers top problems? How much will they pay to solve them?
Does your product concept solve them? Do customers agree?
How much will they pay for it?
Can you draw a day-‐in-‐the-‐life of a customer? Before & aeer your product
Can you draw the org charts of users, buyers and channels?
Customer Discovery: Exit Criteria
![Page 123: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/123.jpg)
Customer Validation
• Develop and sell MVP to passionate earlyvangelists • Validate a repeatable sales roadmap • Verify the business model
![Page 124: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/124.jpg)
Based on your insights from Customer Discovery, sell the smallest feature set customers are willing to pay for!
• Purpose 1: Reduce wasted engineering hours (and wasted code)
• Purpose 2: Get something into the hands of earlyvangelists as soon as possible => maximize learning!
Minimal Viable Product
![Page 125: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/125.jpg)
The Apple I, Apple’s first product, was sold as an assembled circuit board and lacked basic features such as a keyboard, monitor and case.
![Page 126: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/126.jpg)
The owner of this unit added a keyboard and a wooden case. hJp://en.wikipedia.org/wiki/Apple_Inc.
![Page 127: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/127.jpg)
![Page 128: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/128.jpg)
The MVP is not the goal = Requires commitment to itera8on!
• “A complex system that works is invariably found to have evolved from a simple system that worked.”
• “A complex system designed from scratch
never works and cannot be made to work. You have to start over, beginning with a working simple system.”
Minimal Viable Product
![Page 129: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/129.jpg)
Not helpful
Jackpot!
1. Has a problem
2. Understands he or she has a problem
3. Ac8vely searching for a solu8on
4. Cobbled together an interim solu8on
5. CommiJed and can quickly fund a solu8on
Types of earlyvangelists
![Page 130: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/130.jpg)
Do you have a proven sales roadmap? Organiza8on chart? Influence map?
No staffing un8l roadmap is proven!
Do you have a set of orders ($’s) of the product valida8ng the roadmap?
Is the business model scalable? LTV > CAC, Cash
Customer Valida8on: Exit Criteria
![Page 131: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/131.jpg)
If yes – Start execu8ng
![Page 132: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/132.jpg)
If no – Pivot!
• The heart of Customer Development
• Change without crisis (and without firing execu8ves)
“The idea that successful startups change direc2ons but stay grounded in what they've learned”
![Page 133: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/133.jpg)
![Page 134: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/134.jpg)
![Page 135: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/135.jpg)
YouTube - Customer Need Pivot
Friday, April 23, 2010
![Page 136: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/136.jpg)
![Page 137: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/137.jpg)
Pivot
Adapt the Business Model un8l you can prove it works
![Page 138: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/138.jpg)
search
execu8on
![Page 139: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/139.jpg)
• Grow customers from few to many
• Comes aeer proof of sales
• Inject $’s for scale
• This is where you “cross the chasm”
• “Growth Hacking”
Customer Crea8on
![Page 140: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/140.jpg)
• (Re)build company’s organiza8on & management
• Dev.-‐centric ⇒ Mission-‐centric ⇒ Process-‐centric
Company Building
![Page 141: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/141.jpg)
• Customer Discovery Ar8culate and Test your Business Model Hypotheses
• Customer Valida@on Sell your MVP and Validate your BM & Sales Roadmap
• Customer Crea@on Scale via relentless execu8on and fill the sales pipeline
• Company Building (Re)build company’s organiza8on & management
Summary – Customer Development
![Page 142: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/142.jpg)
Don’t do a Boo! Concept Product Dev. Alpha/Beta
Test Launch/ 1st Ship
“We have been too visionary. We wanted everything to be perfect, and we have not had control of costs" Ernst Malmsten (BBC News, May 18 2000)
![Page 143: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/143.jpg)
Henrik Berglund Chalmers University of Technology Center for Business Innova8on
[email protected] www.henrikberglund.com
@khberglund
Tack!
2013-‐02-‐15 143
![Page 144: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/144.jpg)
by Steve Blank and Bob Dorf
More info: www.steveblank.com Buy the book: hJp://www.amazon.com/gp/product/0984999302/
Presenta8on based on
![Page 145: Henrik Berglund - WS - Startup Camp 2013](https://reader030.fdocuments.in/reader030/viewer/2022020217/54702141af795908158b48a1/html5/thumbnails/145.jpg)
developed by Steve Blank and Bob Dorf
hJp://www.slideshare.net/sblank/
Using slides from