Uploaded byStartup University
Startup University - How to Start and Grow your Startup
This document provides an overview of key concepts for starting and growing a startup. It covers entrepreneurship and innovation, idea generation and evaluation, starting up a company through customer development and product development, and strategies for growth. The document outlines the startup process, importance of achieving product/market fit, customer development methodology, agile product development practices for startups, and adapting strategy based on the technology adoption lifecycle.
More Related Content
Similar to Startup University - How to Start and Grow your Startup
Startup University - How to Start and Grow your Startup
- 1. Startup University Howto Start and Grow your Startup Entrepreneurship & Innovation | Ideas Starting Up | Growth
- 2. Startup University • Entrepreneurship& Innovation – What Entrepreneurs do – How to start a startup • Ideas – Idea Generation – Idea shaping & evaluation • Starting Up – The Startup Process – Customer Development – Product Development for Startups • Growth – Diffusion of Innovations – Market Development Strategy
- 3. Entrepreneurship & Innovation What Entrepreneurs do How to start a startup
- 4. What Entrepreneurs do •Entrepreneurs innovate • Innovation means creating something of value • Entrepreneurs exploit change
- 5. What Entrepreneurs do •Entrepreneurs innovate – Entrepreneurs make something new – Innovation is the tool of the entrepreneur – Entrepreneurship can be learned Source: Peter Drucker
- 6. What Entrepreneurs do •Innovation means creating something of value – Innovation creates wealth – Innovation can be applied to both supply and demand Source: Peter Drucker
- 7. What Entrepreneurs do •Entrepreneurs exploit change – Entrepreneurs see change as healthy – 'Creative destruction' is the task of the entrepreneur Source: Peter Drucker
- 8. What Entrepreneurs do •Learn more – Peter Drucker, “Innovation and Entrepreneurship” – Paul Graham, “How to Make Wealth”
- 9. How to starta startup • Startups need people, ideas and funds • Just try it
- 10. How to starta startup • Startups need people, ideas and funds – Startups are hard but doable – Ideas for making something people want – Good people – Spending as little as possible Source: Paul Graham
- 11. How to starta startup • Just try it – Version 1.0 and iterate – Getting to Plan B “No battle plan ever survives contact with the enemy.” Field Marshall Helmuth von Moltke Source: Paul Graham and John Mullins & Randy Komisar
- 12. How to starta startup • Just try it – Innovation - Learning from failure • The only way to avoid failure is to do nothing Source: Bob Sutton and Diego Rodriguez
- 13. How to starta startup • Learn more – Paul Graham, “How to Start a Startup” – Paul Graham, “Six Principles for Making New Things” – John Mullins & Randy Komisar, “Getting to Plan B” – Diego Rodriguez, “Failure sucks, but instructs” – Bob Sutton, “Failure Sucks But Instructs”
- 14. Ideas Idea Generation Idea shaping & evaluation
- 15. Idea Generation • Howto have ideas • Where to find opportunities • Idea generation techniques
- 16. Idea Generation • Howto have ideas – How the process works • Being in a learning environment • Frame ideas as questions • Let mind wander • Apply known functions with new arguments – Some starting points • Things that people use but are broken • Take a luxury and make it a commodity • Make something easier/easier to use • Look at what a big company should be doing and do it yourself • Build stuff for yourself that doesn’t exist Source: Paul Graham
- 17. Idea Generation • Whereto find opportunities – Change is the source of innovation – Look for opportunities • The unexpected—the unexpected success, the unexpected failure, the unexpected outside event; • The incongruity—between reality as it actually is and reality as it is assumed to be or as it “ought to be”; • Innovation based on process need; • Changes in industry structure or market structure that catches everyone unaware. • Demographics (population changes); • Changes in perception, mood, and meaning; • New knowledge, both scientific and nonscientific. Source: Peter Drucker
- 18. Idea Generation • Ideageneration techniques – Old approach to a new problem • Translation – Where else would it work? • Symmetry – Would flipping it work? – New approach to an old problem • No constraints – What would Croesus do? • Internalization – Why aren’t you feeling my pain? – Make lists, then make choices • Generate lots of ideas to get the obvious ones out of the way • Look for the best ones in the “third third” Source: Barry Nalebuff & Ian Ayres and Tim Hurson
- 19. Idea Generation • Learnmore – Paul Graham, “Ideas for Startups” – Peter Drucker, “Innovation and Entrepreneurship” – Gary Dushnitsky, “Idea Generation Workshop” – Barry Nalebuff & Ian Ayres, “Why Not? How to Use Everyday Ingenuity to Solve Problems Big And Small” – Tim Hurson, “Think Better: An Innovator’s Guide to Productive Thinking”
- 20. Idea shaping &evaluation • Identify what customers are already trying to do • Look for disruptive potential • Match your strategy to the type of market • The right Business Model • Putting it all together
- 21. Idea shaping &evaluation • Identify what customers are already trying to do – Jobs to be done – Objectives – Barriers – Solutions Source: Innosight
- 22. Idea shaping &evaluation • Look for disruptive potential – Disruptive innovation Performance Disruptive technologies Time Source: The Innovator’s Solution
- 23. Idea shaping &evaluation • Look for disruptive potential – Disruptive innovations Digital photography Chemical photography Minicomputers Mainframes Personal computers Minicomputers Telephone Telegraph VOIP Telephone Online software On-premise software Solid State drives Hard disk drive Online education Universities – Target the low-end of market & non-consumption Source: The Innovator’s Solution, Wikipedia
- 24. Idea shaping &evaluation • Match your strategy to the type of market – Types of markets • Existing markets • Re-segmented markets • New markets – Implications for: • Market • Sales • Finance Source: Steve Blank
- 25. Idea shaping &evaluation • The right Business Model – Business model innovation • Being distinctive in the customer value proposition, the profit model, key resources, or key processes – Business models Software as a Service Freemium Installed applications Advertising Audience Aggregation Marketplace Lead generation Virtual goods Crowdsourcing Content production Enterprise 2.0 Professional Open Source – Value innovation • Innovating on one dimension while keeping the others at a good enough level Source: Clayton Christensen, David Cohen, and Chan Kim & Renee Mauborgne
- 26. Idea shaping &evaluation • Putting it all together – Product: Features & benefits, IP, dependencies, TCO – Customer & Problem: Types of customers, problem, day in the life of the customer, ROI, MVP – Distribution & Pricing: Based on complexity of the product – Demand creation: Activities to drive demand into channel – Market type: Existing, resegmented, or new market – Competition: Attributes (existing & resegmented markets), surrounding markets (new markets) Source: Steve Blank
- 27. Idea shaping &evaluation • Learn more – Clayton Christensen, “The Innovator’s Solution” – Scott Anthony, “The Innovator’s Guide to Growth” – Innosight, “JOBS Methodology” – Innosight, “Disruptive Innovation Primer” – Steve Blank, “The Four Steps to the Epiphany” – Steve Blank, “The Lean Startup Operating Manual”
- 28. Idea shaping &evaluation • Learn more – Steve Blank, “The Customer Development Methodology” – David Cohen, “Internet Business Models of the TechStars” – Wikipedia, “Business Models” – Clayton Christensen, “Reinventing Your Business Model” – Innosight, “Business Model Innovation” – Chan Kim & Renee Mauborgne, “Value Innovation: The Strategic Logic of High Growth”
- 29. Starting Up The Startup Process Customer Development Product Development for Startups
- 30. The Startup Process TheStartup Process: Turning ideas into products that customer will pay for
- 31. The Startup Process •Product/Market fit • How to get to product/market fit
- 32. The Startup Process •Product/Market fit – Factors for startup success • Market • Team • Product – Product/Market fit • Being in a good market with a product that can satisfy that market Source: Marc Andreessen
- 33. The Startup Process •How to get to product/market fit – Multiple iterations Observe Orient Act Decide – How to make a startup work • Technology infrastructure commoditization • Better methodologies: Customer and product development • Online marketing: SEM, Social • Global Labor Pool Source: Eric Ries
- 34. The Startup Process •Learn more – Marc Andreessen, “The only thing that matters” – Eric Ries, “Principles of Lean Startups” – Eric Ries, “Lean Startups – Low Burn by Design, not Crisis” – Paul Graham, “Six Principles for Making New Things”
- 35. Customer Development Process Iteration Execution The Search for a Business The Growth of a Business Product/Market Fit The Customer Development Process: Learn what the market wants before scaling Source: Steve Blank & Eric Ries
- 36. Customer Development Process •Customer Development Principles • The Customer Development Process
- 37. Customer Development Process •Customer Development Principles – Distinct phases of product & company growth – Learning & iteration vs. linear execution – Getting out of the building – Different market types – Finding the right market for the product Source: Steve Blank & Eric Ries
- 38. Customer Development Process •The Customer Development Process Iteration Execution The Search for a Business The Growth of a Business Product/Market Fit Test hypotheses - Build a Create end-user Scale via relentless Problem and product repeatable and demand and fill the execution concept scalable sales sales pipeline process Source: Steve Blank
- 39. Customer Development Process •The Customer Development Process - Customer Discovery – Principles • There are no facts inside the building, so get outside • Test problem and product concept hypotheses – Exit Criteria • What are customers’ top problems? How much will they pay to solve them? • Does the product concept solve them? Do customers agree? How much will they pay? • Draw a day-in-the-life of a customer – Before & after your product • Draw the organizational chart of users & buyers Source: Steve Blank
- 40. Customer Development Process •The Customer Development Process - Customer Validation – Principles • Develop a repeatable and scalable sales process • Only earlyvangelists are crazy enough to buy – Exit Criteria • Is there a proven sales roadmap? Organizational chart? Influence map? • Do you understand the sales cycle? • Is there a set of orders ($’s) validating the roadmap? • Does the financial model make sense? Source: Steve Blank
- 41. Customer Development Process •The Customer Development Process - Customer Creation – Principles • Creation comes after proof of sales • Creation is a strategy not a tactic – Exit Criteria • Right startup strategy to execute • Positioning tested & complete • Launch strategy matches startup type • Demand creation activities match startup type • First year objectives match startup type Source: Steve Blank
- 42. Customer Development Process • The Customer Development Process - Customer Creation – Customer Creation Activities Market Type First Year Objectives Positioning Demand Creation Launch Existing Market Market share Product Drive demand into Credibility differentiation the sales channel Existing basis of competition Resegmented Market reframing & new Segmentation & Educate market & Segmentation & Market market share innovation drive demand into innovation channel New basis of competition New market Market adoption Defining the new Customer Credibility & market, the need education innovation & the solution Market education & standards setting Source: Steve Blank
- 43. Customer Development Process •The Customer Development Process - Company Building – Principles • Move from earlyvangelists to mainstream customers • Build your company’s organization & management – Exit Criteria • Sales growth plan matches market type • Spending plan matches market type • Right team for the stage of company • Mission-oriented culture? Source: Steve Blank
- 44. Customer Development Process •Learn more – Steve Blank, “The Four Steps to the Epiphany” – Steve Blank, “The Customer Development Methodology” – Eric Ries, “Lean Startups – Low Burn by Design, not Crisis” – Steve Blank, “Web Startups and Customer Development” – Eric Ries, “What is customer development?”
- 45. Product Development forStartups Product Development for Startups: Multiple iterations increase learning and flexibility Source: IDEO
- 46. Product Development forStartups • Product Development for Startups • Customer Development Engineering
- 47. Product Development forStartups • Product Development for Startups – Known and unknown problems and solutions Traditional Product Development Unit of Progress: Advance to Next Stage Waterfall Requirements Specification Design Problem: known Solution: known Implementation Verification Maintenance Source: Eric Ries
- 48. Product Development forStartups • Product Development for Startups – Known and unknown problems and solutions Agile Product Development Unit of Progress: A line of Working Code “Product Owner” or in-house customer Problem: known Solution: unknown Source: Eric Ries
- 49. Product Development forStartups • Product Development for Startups – Known and unknown problems and solutions Product Development for Startups Unit of Progress: Validated Learning About Customers Customer Development Hypotheses, Experiments, Problem: unknown Insights Data, Solution: unknown Feedback, Insights Source: Eric Ries
- 50. Product Development forStartups • Product Development for Startups – Development principles • Embrace change: Build what you need today • Process-oriented development so change is painless • Prefer flexibility to perfection: Ship early and often • Test-driven to find and prevent bugs • Continuous improvement vs. ship-and-maintain Source: Eric Ries
- 51. Product Development forStartups • Customer Development Engineering – Product Development Cycle IDEAS LEARN BUILD DATA CODE MEASURE Source: Eric Ries
- 52. Product Development forStartups • Customer Development Engineering – Customer Development Engineering Tactics • Build: – Small batches – Continuous Deployment • Measure: – Split-testing • Learn: – Building a Minimum Viable Product – Five Whys Root Cause Analysis Source: Eric Ries
- 53. Product Development forStartups • Learn more – Eric Ries, “Lean Startups” – Eric Ries, “Customer Development Engineering” – Eric Ries, “Lean Startups – Low Burn by Design, not Crisis” – Eric Ries, “How to build a Lean Startup”
- 54. Growth Diffusionof Innovations Market Development Strategy
- 55. Growth The Technology AdoptionLife Cycle: Adapt strategy according to the stage in the life cycle Source: Geoffrey Moore
- 56. Diffusion of Innovations •The Technology Adoption Lifecycle • Selling to mainstream customers
- 57. Diffusion of Innovations •The Technology Adoption Lifecycle – The Diffusion of Innovations is a social process Source: Carnegie Mellon University
- 58. Diffusion of Innovations •The Technology Adoption Lifecycle – The Diffusion of Innovations is a social process Source: Carnegie Mellon University
- 59. Diffusion of Innovations •The Technology Adoption Lifecycle – The Diffusion of Innovations is a social process Source: Carnegie Mellon University
- 60. Diffusion of Innovations •The Technology Adoption Lifecycle – The Diffusion of Innovations is a social process Source: Carnegie Mellon University
- 61. Diffusion of Innovations •The Technology Adoption Lifecycle – The Diffusion of Innovations is a social process Source: Carnegie Mellon University
- 62. Diffusion of Innovations •The Technology Adoption Lifecycle – Technology Adoption profiles Technology Visionaries Pragmatists Conservatives Skeptics Enthusiasts (Early (Early (Late majority) (Laggards) (Innovators) Adopters) majority) Source: Geoffrey Moore
- 63. Diffusion of Innovations •The Technology Adoption Lifecycle – Technology Adoption responses Stick with the Hold on! herd! Get ahead of No way! the herd! Try it! Technology Visionaries Pragmatists Conservatives Skeptics Enthusiasts (Early (Early (Late majority) (Laggards) (Innovators) Adopters) majority) Source: Geoffrey Moore
- 64. Diffusion of Innovations •Selling to mainstream customers – The Chasm Chasm Source: Geoffrey Moore
- 65. Diffusion of Innovations •Selling to mainstream customers – Crossing the Chasm: Establish a beachhead segment Source: Geoffrey Moore
- 66. Diffusion of Innovations •Selling to mainstream customers – How Markets Develop Tornado Main Street Chasm Early Market Bowling Alley Source: Geoffrey Moore
- 67. Diffusion of Innovations • Selling to mainstream customers – Implications for Sales & Marketing Chasm Customer goal: Competitive Advantage Solve problem Adopt the obvious Extend paradigm Customer need: Potential of technology Complete solution Make safe choice Better value Vendor goal: Validate technology Segment share Market share Profitability Source: Strategy: Demo the technology Show ROI Set standards Segment focus The Chasm Skills: Technology proficiency Customer Intimacy Closing deals Relationship mgmt. Institute
- 68. Diffusion of Innovations •Learn more – Everett Rogers, “Diffusion of Innovations” – Geoffrey Moore, “Crossing the Chasm: Marketing and Selling High- Tech Products to Mainstream Customers” – Geoffrey Moore, “Dealing with Darwin: How Great Companies Innovate at Every Phase of their Evolution” – The Chasm Institute, “Chasm Methodology”
- 69. Market Development Strategy •Market Development Strategy • Market creation variables • Market attractiveness variables • Market penetration variables
- 70. Market Development Strategy •Market Development Strategy – The Market Development Strategy checklist & stage in the TALC Source of money 1. Target customer 2. Compelling Reason to Buy Source of demand To fulfill the compelling 3. Whole Product reason to buy 4. Partners & Allies Needed for whole product Function of whole product 5. Distribution integration complexity 6. Pricing Function of all other factors For the customer’s money 7. Competition 8. Positioning Relative to competition Next move 9. Next Target Source: The Chasm Companion
- 71. Market Development Strategy •Market creation variables – Target customer • Identified economic buyer, accessible to the sales channel, and sufficiently well-funded to pay the price for the whole product – Compelling reason to buy • Economic consequences sufficient to mandate any reasonable economic buyer to fix the problem – Whole product • Ability (with the help of partners and allies) to provide a complete solution to the customer’s compelling reason to buy Source: The Chasm Companion
- 72. Market Development Strategy •Market attractiveness variables – Partners & allies • Relationships with the other companies needed to fulfill the whole product – Distribution • Sales channel in place that can call on the target customer and fulfill the whole product requirements put on distribution – Pricing • Price of the whole product consistent with the target customer’s budget and with the value gained by fixing the broken process Source: The Chasm Companion
- 73. Market Development Strategy •Market penetration variables – Competition • Target a space that has not been occupied by another company – Positioning • Establish credibility as a provider of products and services to the target niche – Next target customer • Potential to facilitate entry into adjacent niches Source: The Chasm Companion
- 74. Market Development Strategy • Market Development Strategy Target Customer: Visionary functional Pragmatist dept. Pragmatist End-users executive manager technical buyer Compelling Dramatic competitive Fix a broken Adopt new Better value with no Reason to Buy: advantage business process infrastructure risk Whole Product: Differentiated Standardized Standardized Differentiated application application product product Partners & Allies: BPR/SI service Recruited for Rationalize to Minimum required, providers specific product reduce friction ideally none Distribution: Direct sales Direct sales/VARs Higher-volume, Low-cost, high- lower-touch touch Pricing: Value-based, gain Value-based, pain Competition-based, Competition-based, motivated motivated pain motivated pain motivated Competition: Category vs. category Application vs. Company vs. Product vs. product application company Positioning: Technology-based Niche market Market share- Better experience for leadership leadership based leadership end users Next Target: Another visionary in a Adjacent niche New platforms, Next micro-niche different industry market channels, geographies Source: The Chasm Companion
- 75. Market Development Strategy •Learn more – Geoffrey Moore, “Crossing the Chasm: Marketing and Selling High- Tech Products to Mainstream Customers” – Geoffrey Moore, “Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets” – Paul Wiefels, “The Chasm Companion: A Field Guide to Crossing the Chasm and Inside the Tornado ” – The Chasm Institute, “Chasm Methodology”