What process should entrepreneurs follow in developing their business model?

Take-aways from a talk in the Trust Center on 6/27/16

  1. “Get out of the office...and into the world” – steve blank’s customer development process
  • Step 1+2 - The search phase:
    • Step 1: Customers discovery - building a hypothesis around who are your customers and what are their needs.
    • Step 2: Customer validation -  
      • Testing the hypothesis by talking with the customers.
      • Testing  the solution to validate the market needs: product- market fit is the key to success
      • Pivot and iterate when necessary

When talking with customers: look for insights not just answers. Then change the canvas based on the new learnings.

  • Step 3+4 - The execution phase:
    • Step 3: Customer creation
    • Step 4: Company building
  • Lessons:
    • Don’t rush to the execution phase before you’re done with the search phase.
    • The search phase is not something you can outsource.  You got to talk with the customers directly (unlike with large companies where they rely on sales/ marketing to contribute customers insights)

2.  Build measure Lean loop – Eric Ries’s lean startup

Hypothesis → experiment → test → measure results → insights/ learnings

  • MVP- minimal viable product
    • Build the minimal features to get feedback.
    • What should we be building and in what order?
    • What makes your customers lives different before and after they were introduced to your product?
  • Failure is OK! Failure without learning is not OK…
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