lean startup refresher
Post on 30-Oct-2014
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copy2013 Pathfinder Software
chicagoleanstartupcom
Tonight
Lean Startup RefresherBernhard Kappe (Pathfinder)
600 Pizza and Beer
645 Introductions
700 Lean Startup Refresher
800 Questions
Upcoming Meetups
April 18th ndash TBD
May 16th ndash Mark Achler (Redbox)
June 20th ndash Chuck Templeton (OpenTable and Impact Engine)
Members 3101
copy2013 Pathfinder Software
NOTE Slides borrowed liberally from Steve Blankrsquos Lean Launchpad Thanks Steve
copy2013 Pathfinder Software
3
Lean Startup Refresher
copy2013 Pathfinder Software
Agenda1 What we used to believe What we now
know
2 Business Models and Customer Development
3 Examples
4 Questions
copy2013 Pathfinder Software
Part 1
What We Used to Believe
What We Now Know
copy2013 Pathfinder Software
What We Used to Believe
copy2013 Pathfinder Software
Startups are a Smaller Version of a Large Company
copy2013 Pathfinder Software
What We Now Know
copy2013 Pathfinder Software
Startups Search Companies Execute
copy2013 Pathfinder Software
What We Used to Believe
Strategy
copy2013 Pathfinder Software
Start With an Operating Plan and Financial Model
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
NOTE Slides borrowed liberally from Steve Blankrsquos Lean Launchpad Thanks Steve
copy2013 Pathfinder Software
3
Lean Startup Refresher
copy2013 Pathfinder Software
Agenda1 What we used to believe What we now
know
2 Business Models and Customer Development
3 Examples
4 Questions
copy2013 Pathfinder Software
Part 1
What We Used to Believe
What We Now Know
copy2013 Pathfinder Software
What We Used to Believe
copy2013 Pathfinder Software
Startups are a Smaller Version of a Large Company
copy2013 Pathfinder Software
What We Now Know
copy2013 Pathfinder Software
Startups Search Companies Execute
copy2013 Pathfinder Software
What We Used to Believe
Strategy
copy2013 Pathfinder Software
Start With an Operating Plan and Financial Model
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
3
Lean Startup Refresher
copy2013 Pathfinder Software
Agenda1 What we used to believe What we now
know
2 Business Models and Customer Development
3 Examples
4 Questions
copy2013 Pathfinder Software
Part 1
What We Used to Believe
What We Now Know
copy2013 Pathfinder Software
What We Used to Believe
copy2013 Pathfinder Software
Startups are a Smaller Version of a Large Company
copy2013 Pathfinder Software
What We Now Know
copy2013 Pathfinder Software
Startups Search Companies Execute
copy2013 Pathfinder Software
What We Used to Believe
Strategy
copy2013 Pathfinder Software
Start With an Operating Plan and Financial Model
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Agenda1 What we used to believe What we now
know
2 Business Models and Customer Development
3 Examples
4 Questions
copy2013 Pathfinder Software
Part 1
What We Used to Believe
What We Now Know
copy2013 Pathfinder Software
What We Used to Believe
copy2013 Pathfinder Software
Startups are a Smaller Version of a Large Company
copy2013 Pathfinder Software
What We Now Know
copy2013 Pathfinder Software
Startups Search Companies Execute
copy2013 Pathfinder Software
What We Used to Believe
Strategy
copy2013 Pathfinder Software
Start With an Operating Plan and Financial Model
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Part 1
What We Used to Believe
What We Now Know
copy2013 Pathfinder Software
What We Used to Believe
copy2013 Pathfinder Software
Startups are a Smaller Version of a Large Company
copy2013 Pathfinder Software
What We Now Know
copy2013 Pathfinder Software
Startups Search Companies Execute
copy2013 Pathfinder Software
What We Used to Believe
Strategy
copy2013 Pathfinder Software
Start With an Operating Plan and Financial Model
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Used to Believe
copy2013 Pathfinder Software
Startups are a Smaller Version of a Large Company
copy2013 Pathfinder Software
What We Now Know
copy2013 Pathfinder Software
Startups Search Companies Execute
copy2013 Pathfinder Software
What We Used to Believe
Strategy
copy2013 Pathfinder Software
Start With an Operating Plan and Financial Model
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Startups are a Smaller Version of a Large Company
copy2013 Pathfinder Software
What We Now Know
copy2013 Pathfinder Software
Startups Search Companies Execute
copy2013 Pathfinder Software
What We Used to Believe
Strategy
copy2013 Pathfinder Software
Start With an Operating Plan and Financial Model
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
copy2013 Pathfinder Software
Startups Search Companies Execute
copy2013 Pathfinder Software
What We Used to Believe
Strategy
copy2013 Pathfinder Software
Start With an Operating Plan and Financial Model
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Startups Search Companies Execute
copy2013 Pathfinder Software
What We Used to Believe
Strategy
copy2013 Pathfinder Software
Start With an Operating Plan and Financial Model
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Used to Believe
Strategy
copy2013 Pathfinder Software
Start With an Operating Plan and Financial Model
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Start With an Operating Plan and Financial Model
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
All I Need to Do is Execute the Plan
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Plan MeetsFirst ContactWith Customers
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Previous 5-Year Plans
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
All I Need to Do is Make the Forecast
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
No Business Plan survives first contact with customers
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Planning comes before the plan
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Business Models
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Business Model Hypotheses
Search
Strategy
Execution
Operating Plan +Financial Model
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Used to Believe
Process
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
We Built Startups by Managing Processes
Product Management
+
Waterfall Engineering
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Product Introduction Model
ConceptProduct
DevAlpha
Beta TestLaunch1st Ship
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Tradition ndash Hire Marketing
ConceptProduct
DevAlphaBeta
TestLaunch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
Marketing
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Tradition ndash Hire Sales
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Organization
Marketing
Salesbull Hire Sales VPbull Hire 1st Sales Staff
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Tradition ndash Hire Bus Development
Concept Product Dev
AlphaBeta Test
Launch1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Hire Sales VPbull Pick distribution Channel
bull Build Sales Channel Distribution
Marketing
Sales
bull Hire First Bus Dev
bull Do deals Business Development
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Tradition ndash Hire Engineering
Concept
Marketing
Sales
Business Development
Engineering
Product Dev
- Create Marcom Materials- Create Positioning
bull Write MRD
bull Waterfall
AlphaBeta Test
- Hire PR Agency- Early Buzz
bull Hire Sales VPbull Pick distribution
Channel
bull Hire First Bus Dev
bull QA
Launch1st Ship
- Create Demand- Launch Event- ldquoBrandingrdquo
bull Build Sales Channel Distribution
bull Do deals for FCS
bull Tech Pubs
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Product Introduction Model
ConceptSeed
Round
Product Dev
AlphaBeta Test
Launch1st Ship
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Problem known
Product Features known
Waterfall Product ManagementExecution on Two ldquoKnownsrdquo
Requirements
Design
Implementation
Verification
Maintenance
Source Eric Rieshttpstartuplessonslearnedblogspotcom
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Strategy
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
More startups fail from a lack of customers than from a failure of product development
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Process Customer ampAgile Development
Operating Plan +Financial Model
Product Managementamp Waterfall Development
Search Execution
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Used to Believe
Organization
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Hire and Build a Functional Organization
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Organization
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Founders run a Customer Development Team
No sales marketing and business development
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Business Model Hypotheses
OrganizationCustomer
Development Team Founder-driven
Customer DevelopmentAgile Development
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Search Execution
Strategy
Process
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Used to Believe
Education
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Entrepreneurial Education was about execution
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Education
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Entrepreneurial Education begins with the Search for a business model
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development
Customer Funnel GetKeepGrow Market
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Search Execution
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Putting Search first is a radical change
Itrsquos not just one more methodology
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Used to Believe
Instructional Strategies
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cases and a Business Plan were good teaching tools
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
What We Now Know
Instructional Strategies
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
~100 GOOTB connections
Experiential Immersion
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Business Model Patterns Replace Cases
57
Nespresso machines
retail mailorder
Nespressocom
callcenter
Nespresso
stores
households
business
1 x machinesales
repetitive pod sales
distribution channels
coffeeproduction
facilites
production B2C distribution brand
marketing
brandpatents
machine
manufacturer
production
B2C
distributionbrand
marketing
Nespresso club
brandbrand
Nespresso pods
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Business Model Hypotheses
Strategy
Organization Customer DevelopmentTeam Founder-driven
Process Customer DevelopmentAgile Development
Education Business Model Design Customer Development Startup team building
Entrepreneurial Finance Agile Development Marketing
Instructional Strategies
Experiential constructivist learner-centered
inquiry-based
Search
Operating Plan +Financial Model
Product ManagementAgile or Waterfall Development
Functional Organization by Department
Organizational Behavior HR Mgmt Accounting Modeling
Strategy Operations Leadership Marketing
Manufacturing
Case Lecture Small Group Mentorship
Execution
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
bull Lean Startup Classesbull Great Mentorsbull Essential Startup Toolsbull $75000 Cash and Prizes
Get Out of the BuildingJoin the 14-week Lean Startup program designed to get your company on the path to success
httpchicagoleanchallengecom
June 17th Entry Deadline | June 29th Bootcamp October 3rd Finalists Pitch
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Part 2
Business Models and
Customer Development
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Whatrsquos A Company
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Whatrsquos A Company
A business organization which sells a product or service in exchange for revenue and profit
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Whatrsquos A Startup
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
A temporary organization designed to search for a repeatable and scalable business model
A Startup aims to become a company
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How Are Companies Organized
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How Are Companies Organized
Companies are organized around Business Models
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Whatrsquos a Business Model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Value Proposition
What Are You Building and For Who
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Segments
Who Are They
Why Would They Buy
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Channels
How does your Product Get to Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Relationships
How do you Get Keep and Grow Customers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Revenue Streams
How do you Make Money
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Resources
What are your most important Assets
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Partners
Who are your Partners and Suppliers
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Key Activities
Whatrsquos Most Important for the Business
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Cost Structure
What are the Costs and Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
ButRealize Theyrsquore Hypotheses
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Test the Problem Then the Solution
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Minimum Viable Product
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
The Pivot
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development
Details
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Customer Development is how you search for the model
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea Business Model(s)
Size of the Opportunity
Customer Discovery
Customer Validation
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Theory Practice
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
bull First test the problembull Next test the solution
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
How to Build A Startup
Idea Size of the Opportunity
Business Model(s)
Customer Discovery
Customer Validation
Business Model(s)
Size of the Opportunity
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Does this really work
12 Weeks From an Idea to a Business
Part 3
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
CONSUMER
PAIN POINTS
OUR SOLUTION
UNIQUE Centralized Collection
COMMUNITY of Independent
Designers
AFFORDABLE Pieces
Lack of VARIETY
Low ACCESS to Independent
Design
Low
VALUE
copy2013 Pathfinder Software
DESIGNER
PAIN POINTS
OUR SOLUTION
Lack of BUSINESS
SKILLS
NETWORKING in a fragmented
community
Regular FEEDBACK
Manage BUSINESS
OPERATIONS
Online COMMUNITY
VOTING amp COMMENT
copy2013 Pathfinder Software
LOW-FIDELITY MVP
HIGH-FIDELITY MVP
copy2013 Pathfinder Software
LEAN PRODUCT DEVELOPMENTphysical
1 Generate idea
3 Obtain customer validation
2 Create renderings
4 Identify product value
5 Build CAD drawings
6 Value engineer design
7 Select manufacturing partners
9 Source materials
8 Evaluate manufacturing processes
10 Optimize packaging
11 Select delivery methods
12 Develop overall fulfillment strategy
Iterate
Iterate
Dis
covery
Develo
pm
en
tExe
cuti
on
copy2013 Pathfinder Software
= INITIAL PRICE POINT
+
INDUSTRY EXPERTS
+
CUSTOMER INTERVIEWS
CRAIGSLIST
copy2013 Pathfinder Software
70 Manufacturers Contacted
35 Responded and Bid
4 Offered to Partner
1 Selected
copy2013 Pathfinder Software
49COST
REDUCTION
OUR FIRST PRODUCT
copy2013 Pathfinder Software
10 DAYS OF OFFLINE SALEShellip
$3200
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
copy2013 Pathfinder Software
copy2013 Pathfinder Software
CONSUMER
PAIN POINTS
OUR SOLUTION
UNIQUE Centralized Collection
COMMUNITY of Independent
Designers
AFFORDABLE Pieces
Lack of VARIETY
Low ACCESS to Independent
Design
Low
VALUE
copy2013 Pathfinder Software
DESIGNER
PAIN POINTS
OUR SOLUTION
Lack of BUSINESS
SKILLS
NETWORKING in a fragmented
community
Regular FEEDBACK
Manage BUSINESS
OPERATIONS
Online COMMUNITY
VOTING amp COMMENT
copy2013 Pathfinder Software
LOW-FIDELITY MVP
HIGH-FIDELITY MVP
copy2013 Pathfinder Software
LEAN PRODUCT DEVELOPMENTphysical
1 Generate idea
3 Obtain customer validation
2 Create renderings
4 Identify product value
5 Build CAD drawings
6 Value engineer design
7 Select manufacturing partners
9 Source materials
8 Evaluate manufacturing processes
10 Optimize packaging
11 Select delivery methods
12 Develop overall fulfillment strategy
Iterate
Iterate
Dis
covery
Develo
pm
en
tExe
cuti
on
copy2013 Pathfinder Software
= INITIAL PRICE POINT
+
INDUSTRY EXPERTS
+
CUSTOMER INTERVIEWS
CRAIGSLIST
copy2013 Pathfinder Software
70 Manufacturers Contacted
35 Responded and Bid
4 Offered to Partner
1 Selected
copy2013 Pathfinder Software
49COST
REDUCTION
OUR FIRST PRODUCT
copy2013 Pathfinder Software
10 DAYS OF OFFLINE SALEShellip
$3200
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
copy2013 Pathfinder Software
CONSUMER
PAIN POINTS
OUR SOLUTION
UNIQUE Centralized Collection
COMMUNITY of Independent
Designers
AFFORDABLE Pieces
Lack of VARIETY
Low ACCESS to Independent
Design
Low
VALUE
copy2013 Pathfinder Software
DESIGNER
PAIN POINTS
OUR SOLUTION
Lack of BUSINESS
SKILLS
NETWORKING in a fragmented
community
Regular FEEDBACK
Manage BUSINESS
OPERATIONS
Online COMMUNITY
VOTING amp COMMENT
copy2013 Pathfinder Software
LOW-FIDELITY MVP
HIGH-FIDELITY MVP
copy2013 Pathfinder Software
LEAN PRODUCT DEVELOPMENTphysical
1 Generate idea
3 Obtain customer validation
2 Create renderings
4 Identify product value
5 Build CAD drawings
6 Value engineer design
7 Select manufacturing partners
9 Source materials
8 Evaluate manufacturing processes
10 Optimize packaging
11 Select delivery methods
12 Develop overall fulfillment strategy
Iterate
Iterate
Dis
covery
Develo
pm
en
tExe
cuti
on
copy2013 Pathfinder Software
= INITIAL PRICE POINT
+
INDUSTRY EXPERTS
+
CUSTOMER INTERVIEWS
CRAIGSLIST
copy2013 Pathfinder Software
70 Manufacturers Contacted
35 Responded and Bid
4 Offered to Partner
1 Selected
copy2013 Pathfinder Software
49COST
REDUCTION
OUR FIRST PRODUCT
copy2013 Pathfinder Software
10 DAYS OF OFFLINE SALEShellip
$3200
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
CONSUMER
PAIN POINTS
OUR SOLUTION
UNIQUE Centralized Collection
COMMUNITY of Independent
Designers
AFFORDABLE Pieces
Lack of VARIETY
Low ACCESS to Independent
Design
Low
VALUE
copy2013 Pathfinder Software
DESIGNER
PAIN POINTS
OUR SOLUTION
Lack of BUSINESS
SKILLS
NETWORKING in a fragmented
community
Regular FEEDBACK
Manage BUSINESS
OPERATIONS
Online COMMUNITY
VOTING amp COMMENT
copy2013 Pathfinder Software
LOW-FIDELITY MVP
HIGH-FIDELITY MVP
copy2013 Pathfinder Software
LEAN PRODUCT DEVELOPMENTphysical
1 Generate idea
3 Obtain customer validation
2 Create renderings
4 Identify product value
5 Build CAD drawings
6 Value engineer design
7 Select manufacturing partners
9 Source materials
8 Evaluate manufacturing processes
10 Optimize packaging
11 Select delivery methods
12 Develop overall fulfillment strategy
Iterate
Iterate
Dis
covery
Develo
pm
en
tExe
cuti
on
copy2013 Pathfinder Software
= INITIAL PRICE POINT
+
INDUSTRY EXPERTS
+
CUSTOMER INTERVIEWS
CRAIGSLIST
copy2013 Pathfinder Software
70 Manufacturers Contacted
35 Responded and Bid
4 Offered to Partner
1 Selected
copy2013 Pathfinder Software
49COST
REDUCTION
OUR FIRST PRODUCT
copy2013 Pathfinder Software
10 DAYS OF OFFLINE SALEShellip
$3200
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
DESIGNER
PAIN POINTS
OUR SOLUTION
Lack of BUSINESS
SKILLS
NETWORKING in a fragmented
community
Regular FEEDBACK
Manage BUSINESS
OPERATIONS
Online COMMUNITY
VOTING amp COMMENT
copy2013 Pathfinder Software
LOW-FIDELITY MVP
HIGH-FIDELITY MVP
copy2013 Pathfinder Software
LEAN PRODUCT DEVELOPMENTphysical
1 Generate idea
3 Obtain customer validation
2 Create renderings
4 Identify product value
5 Build CAD drawings
6 Value engineer design
7 Select manufacturing partners
9 Source materials
8 Evaluate manufacturing processes
10 Optimize packaging
11 Select delivery methods
12 Develop overall fulfillment strategy
Iterate
Iterate
Dis
covery
Develo
pm
en
tExe
cuti
on
copy2013 Pathfinder Software
= INITIAL PRICE POINT
+
INDUSTRY EXPERTS
+
CUSTOMER INTERVIEWS
CRAIGSLIST
copy2013 Pathfinder Software
70 Manufacturers Contacted
35 Responded and Bid
4 Offered to Partner
1 Selected
copy2013 Pathfinder Software
49COST
REDUCTION
OUR FIRST PRODUCT
copy2013 Pathfinder Software
10 DAYS OF OFFLINE SALEShellip
$3200
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
LOW-FIDELITY MVP
HIGH-FIDELITY MVP
copy2013 Pathfinder Software
LEAN PRODUCT DEVELOPMENTphysical
1 Generate idea
3 Obtain customer validation
2 Create renderings
4 Identify product value
5 Build CAD drawings
6 Value engineer design
7 Select manufacturing partners
9 Source materials
8 Evaluate manufacturing processes
10 Optimize packaging
11 Select delivery methods
12 Develop overall fulfillment strategy
Iterate
Iterate
Dis
covery
Develo
pm
en
tExe
cuti
on
copy2013 Pathfinder Software
= INITIAL PRICE POINT
+
INDUSTRY EXPERTS
+
CUSTOMER INTERVIEWS
CRAIGSLIST
copy2013 Pathfinder Software
70 Manufacturers Contacted
35 Responded and Bid
4 Offered to Partner
1 Selected
copy2013 Pathfinder Software
49COST
REDUCTION
OUR FIRST PRODUCT
copy2013 Pathfinder Software
10 DAYS OF OFFLINE SALEShellip
$3200
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
LEAN PRODUCT DEVELOPMENTphysical
1 Generate idea
3 Obtain customer validation
2 Create renderings
4 Identify product value
5 Build CAD drawings
6 Value engineer design
7 Select manufacturing partners
9 Source materials
8 Evaluate manufacturing processes
10 Optimize packaging
11 Select delivery methods
12 Develop overall fulfillment strategy
Iterate
Iterate
Dis
covery
Develo
pm
en
tExe
cuti
on
copy2013 Pathfinder Software
= INITIAL PRICE POINT
+
INDUSTRY EXPERTS
+
CUSTOMER INTERVIEWS
CRAIGSLIST
copy2013 Pathfinder Software
70 Manufacturers Contacted
35 Responded and Bid
4 Offered to Partner
1 Selected
copy2013 Pathfinder Software
49COST
REDUCTION
OUR FIRST PRODUCT
copy2013 Pathfinder Software
10 DAYS OF OFFLINE SALEShellip
$3200
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
= INITIAL PRICE POINT
+
INDUSTRY EXPERTS
+
CUSTOMER INTERVIEWS
CRAIGSLIST
copy2013 Pathfinder Software
70 Manufacturers Contacted
35 Responded and Bid
4 Offered to Partner
1 Selected
copy2013 Pathfinder Software
49COST
REDUCTION
OUR FIRST PRODUCT
copy2013 Pathfinder Software
10 DAYS OF OFFLINE SALEShellip
$3200
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
70 Manufacturers Contacted
35 Responded and Bid
4 Offered to Partner
1 Selected
copy2013 Pathfinder Software
49COST
REDUCTION
OUR FIRST PRODUCT
copy2013 Pathfinder Software
10 DAYS OF OFFLINE SALEShellip
$3200
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
49COST
REDUCTION
OUR FIRST PRODUCT
copy2013 Pathfinder Software
10 DAYS OF OFFLINE SALEShellip
$3200
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
10 DAYS OF OFFLINE SALEShellip
$3200
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
3 MONTHS AGO
TODAY Paying Customers Active
Website
Physical Product
Network of Manufacture
rs
Design Community
Idea
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Menu Expenses
$$$
$$$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Lots of competition
Getting a fair price
Not a dire problem
Only 1 signup
Bad
COMPANY
Better Closer
Good
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
PIVOT
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
$
Expenses
$
Expenses
$$$
Expenses
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
They still need to do negotiations
Top problem
Manual solution
12 signups
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
$ $$ $$$
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
SEM Email
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Quote restaurants specifically
Restaurants love it
No signups
Vendors hesitantBad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
ITERATE
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Requirements
$ $$ $$$
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Restaurants like it
Vendors like it
Both willing to pay
Bad
Better Closer
Good
COMPANY
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Concierge MVPElectronic interfaces for customers
Manual processes behind the scenes
Test hypotheses fast without investing in development
Also known as ldquoflintstoningrdquo
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Lean StartupData Driven Process to Find a Scalable Business Model
Reduce Risk Through Rapid Hypothesis Testing
Get Out of the Building (Genchi Genbutsu)
Eliminate Waste through Minimal Experiments (Build-Measure-Learn Loops)
Growing Body of Knowledge Lots of Techniques
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
147
httppathfindersoftwarecom
T 8775487248 F 3128031941
infopathfcom
Build your next great product
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
But can we use it in our enterprise
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
149
Wherever Therersquos Extreme Uncertainty
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Uncertainty in Your Product Portfolio
Share of Wallet
RevCustomer
New Product Development
Loyalty
Churn LTV
New Customers
New Customer Revenue
Customers
Prod
ucts
Existing New
Existing
New
High Uncertainty
Low Uncertainty
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Are any enterprises using Lean Startup
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
152
Whorsquos Applying Lean Innovation
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Protect the Startup from the Enterprise hellipEnterprise Startup
Execute Search
Financial Accounting Innovation Accounting
Short Term Results Long Term Results - Maybe
Risk Intolerant ndash Failure is not Tolerated
Risk Tolerant ndash Fail Early and Often
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
hellip and the Enterprise from the StartupEnterprise Startup
Valuable Brand Must Be Preserved
Brand What Brand
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Startups are high risk high reward
So donrsquot put all your eggs in one basket
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Portfolio Management
Example
$1MM total portfolio
$300K for initial funding ($75Kquarter)
If an EIR costs $100K you could fund 3 new projectsquarter
This ratio would be adjusted based on failure rate
157
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Lean Innovation Stages
Brainstorming Business Model Generation Hypotheses
Problem Interviews Landing Pages
Stage Activities
Solution Interviews Wireframing Proto typing MVP Channel Testing First Sales
Improve product - make it indispensable
Validate UVP Full User Lifecycle Funnel (AAARR) test channels messaging scalingTest pricing plans optimizereduce customer acquisition costs increase LTV improve NPS
Scale sales and marketing build organization
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Validated Customer amp Problem
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of your target market and what problem that you solve for them
159
Exit Criteria
bull Have validated customer archetypes
bull Can depict a day in the life of a customer
bull Have organizational and customer influence maps
bull Understand how customers solve this problem today
bull Are solving a ldquomust haverdquo problem
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
ProblemSolution Fit
Metrics
bull Total of customer interviews
bull Weekly of customer interviews (trend graph)
bull validated hypotheses
bull invalidated hypotheses
Goal To have a clear understanding of the minimum solution to your target customerrsquos problem
160
Exit Criteria
bull Identified the demographics of an early adopter
bull Defined the minimum features to solve this problem
bull Understand the value the product provides the customer
bull Understand the price a customer is willing to pay
bull Back of the napkin financial model looks promising
bull For indirect sales show each channel partnerrsquos business model
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
10 Customers
Metrics ndash each project will be different
bull of engaged customers
bull Funnel Metrics (example)bull Acquisition
bull Unique visitorsbull Time on site
bull Activationbull Average of visitsbull Average conversion
timebull Conversion by channel
bull Engagement Metrics
Goal To have 10 engaged paying customers
161
Exit Criteria
bull Identified what an engaged customer means
bull Determined the actions of an engaged customer
bull 10 engaged paying customers
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
100 Customers
Metrics
All of the metrics for 10 Customers plus
bull Cohort analysis for churn and engagement events
bull Customer acquisition cost amp cycle time
bull Lifetime value
bull Referral rate
Goal To have 100 engaged paying customers
162
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull 100 engaged paying customers
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
1000 Customers
Metrics
All of the metrics for 100 Customers plus
bull P amp L
bull Breakeven projection
bull Time to recover CAC
bull Net promoter score (quarterly)
bull Product issue rate
Goal To have 1000 engaged paying customers
163
Exit Criteria
bull Identified best channels for customer acquisition
bull Recognize the highest risks for the project and what to do to mitigate them
bull The Business Canvas is completely validated
bull The product has a repeatable scalable sales and marketing model
bull 1000 engaged paying customers
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Transfer to Execution
164
Products that have 1000 engaged paying customers are transferred to Execution
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Risk Cost
$
$$
$$$
$$$$
$$$$$
$$$$$$
$$$$$$$
Lean Innovation Stages
Stage
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
The Four Ps of Lean Portfolio ManagementPivot - change hypotheses go back and validate
Persevere - keep optimizing stay in stage
Punt - Kill the project
Promote - Move up a stageinvestment level
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Managing the Funnel with the 4 Ps
Projects
100
50
25
12
8
6
3
Stage
PuntPivot Persevere Promote
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Portfolio Management GoalsMetrics
- Get projects to move from idea to handoff as quickly and inexpensively as possible
- When they fail fail fast
- Ultimately IRR But that takes 3-
5 years- Average throughout
by stage and overall Use cohort
analysis for this- Mean time to failure- Mean cost of failure
Goals
Metrics
168
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
copy2013 Pathfinder Software
Process Roles
169
- Slide 1
- Slide 2
- Agenda
- Part 1
- What We Used to Believe
- Startups are a Smaller Version of a Large Company
- What We Now Know
- Startups Search Companies Execute
- What We Used to Believe (2)
- Start With an Operating Plan and Financial Model
- Slide 12
- Slide 13
- What We Now Know (2)
- Slide 15
- Slide 16
- Slide 17
- No Business Plan survives first contact with customers
- Planning comes before the plan
- Business Models
- Business Models (2)
- Slide 22
- What We Used to Believe (3)
- We Built Startups by Managing Processes
- Product Introduction Model
- Tradition ndash Hire Marketing
- Tradition ndash Hire Sales
- Tradition ndash Hire Bus Development
- Tradition ndash Hire Engineering
- Product Introduction Model (2)
- Waterfall Product Management Execution on Two ldquoKnownsrdquo
- Waterfall Product Management Execution on Two ldquoKnownsrdquo (2)
- What We Now Know (3)
- More startups fail from a lack of customers than from a failur
- Customer Development
- Slide 36
- What We Used to Believe (4)
- Hire and Build a Functional Organization
- Slide 39
- Slide 40
- What We Now Know (4)
- Founders run a Customer Development Team No sales marketing
- Slide 43
- Putting Search first is a radical change Itrsquos not just one m
- What We Used to Believe (5)
- Entrepreneurial Education was about execution
- Entrepreneurial Education was about execution (2)
- What We Now Know (5)
- Entrepreneurial Education begins with the Search for a business
- Slide 50
- Putting Search first is a radical change Itrsquos not just one m (2)
- What We Used to Believe (6)
- Cases and a Business Plan were good teaching tools
- Cases and a Business Plan were good teaching tools (2)
- What We Now Know (6)
- Experiential Immersion
- Business Model Patterns Replace Cases
- Slide 58
- Slide 59
- Part 2
- Whatrsquos A Company
- Whatrsquos A Company (2)
- Whatrsquos A Startup
- A temporary organization designed to search for a repeatable
- A temporary organization designed to search for a repeatable (2)
- A temporary organization designed to search for a repeatable (3)
- A temporary organization designed to search for a repeatable (4)
- A temporary organization designed to search for a repeatable (5)
- How Are Companies Organized
- How Are Companies Organized (2)
- Whatrsquos a Business Model
- Slide 72
- Value Proposition
- Slide 74
- Customer Segments
- Slide 76
- Channels
- Slide 78
- Customer Relationships
- Slide 80
- Revenue Streams
- Slide 82
- Key Resources
- Slide 84
- Key Partners
- Slide 86
- Key Activities
- Slide 88
- Cost Structure
- Slide 90
- But Realize Theyrsquore Hypotheses
- Slide 92
- Slide 93
- Slide 94
- Customer Development (2)
- Slide 96
- Slide 97
- Customer Development (3)
- Slide 99
- Customer Development (4)
- Slide 101
- Customer Development (5)
- Customer Development is how you search for the model
- Slide 104
- Slide 105
- How to Build A Startup
- How to Build A Startup (2)
- How to Build A Startup (3)
- How to Build A Startup (4)
- How to Build A Startup (5)
- How to Build A Startup (6)
- Does this really work
- Slide 113
- Slide 114
- Slide 115
- Slide 116
- Slide 117
- Slide 118
- Slide 119
- Slide 120
- Slide 121
- Slide 122
- Slide 123
- Slide 124
- Slide 125
- Slide 126
- Slide 127
- Slide 128
- Slide 129
- Slide 130
- Slide 131
- Slide 132
- Slide 133
- Slide 134
- Slide 135
- Slide 136
- Slide 137
- Slide 138
- Slide 139
- Slide 140
- Slide 141
- Slide 142
- Slide 143
- Slide 144
- Concierge MVP
- Lean Startup
- (2)
- But can we use it in our enterprise
- Slide 149
- Uncertainty in Your Product Portfolio
- Are any enterprises using Lean Startup
- Whorsquos Applying Lean Innovation
- Slide 153
- Protect the Startup from the Enterprise hellip
- hellip and the Enterprise from the Startup
- Startups are high risk high reward So donrsquot put all your egg
- Portfolio Management
- Lean Innovation Stages
- Validated Customer amp Problem
- ProblemSolution Fit
- 10 Customers
- 100 Customers
- 1000 Customers
- Transfer to Execution
- Lean Innovation Stages (2)
- The Four Ps of Lean Portfolio Management
- Managing the Funnel with the 4 Ps
- Portfolio Management GoalsMetrics
- Process Roles
-
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