It is known as the bible for startups and the best investment a startup can make. It has been used by unicorn startups and is on the must-read list for every entrepreneur and innovator.
A startup without customers is like a day without oxygen, and the Startup Owners Manual helps founders get it right and shows you how to get, keep, and grow customers, literally every step of the way.
This manual walks entrepreneurs step-by-step through the proven, world-renowned Customer Development process for getting startups right the first time.
The Customer Development process was developed by a Silicon Valley serial entrepreneur-turned-educator and based on his eight valley startups, four of which IPO’ed.
He joined with serial entrepreneur Bob Dorf to build the Startup Owner’s Manual as a sequel to his first book, which sparked the Lean Startup movement. The Startup Owners Manual lays out the best practices, lessons and tips that have swept the startup world, offering a wealth of proven advice and information for entrepreneurs of all stripes.
We also discuss innovation within larger, established organisations.
- Guides startups of all types in their search for a scalable, profitable business model
- Explains the 9 deadly sins startups commit most often and helps you to avoid them
- Incorporates the business model canvas as the starting point for any startup
- Provides separate paths and advice for physical versus web/mobile products
- Explains how to test and iterate your companys road to product/market fit
- Details strategies and tactics for how to get, keep and grow customers
- Teaches a new math for startups — metrics that matter
- Includes detailed checklists at every step of the process
- and provides hundreds of ideas, watch-outs and how tos for founders and innovators
I am delighted to welcome the pioneer of the Lean Startup movement, the legendary Steve Blank
[0:14] Call the bible for startups in the best investment startup can ever make a startup without customers is like a day without an accident.
Under start-up owners manual helps founder’s get it right and show you how to gas keep and grow customers never leave every step of the way.
[0:31] This owners manual works entrepreneur’s step by step through the proven world renowned customer development process for getting started the very first time.
The owners manual is the value structure and success two thousands of great companies.
[0:47] The customer development process was developed by in silicon valley serial entrepreneur turned educator and based on his valley startups for which API.
[0:57] Join with serial entrepreneur bob door to build the start of manual as a sequel to his first book the four steps to epiphany which sparked the lean startup movement.
[1:08] Startup owners manual the best practices lessons and tips that’s what the startup world offering a wealth of proven advice and information for entrepreneurs of all stripes,
i am delighted to welcome the pioneer of the lean startup movements the legendary steve blank welcome to the show actually have a well excited
what is a good phone conversation about anything pedro the first thing we need to say about this book is don’t attend to read this in a single sitting over a long weekend its a companion over sixty three months or more,
the takes to build a successful scale of a startup.
Can you call shana since lied trying to drink water from a fire hose unfortunately i did that not dragon because i only have a week between each show to read the book it take yours long to read is a page to write it where is the logging
put a good places for things to start up interest just some of the best practices founder’s kind of need to think about when they build businesses,
starting with what’s a startup let’s jump straight into that then what is a startup you tell us to book use the term startup litteraly hundreds of times,
will you share different definitions of what exactly is startup is and what it’s not you know what i learned when do the things that struck me early in my prayers and educator after being an entrepreneur,
is that you can ask people what’s the start up a new python got about a thousand different answers.
[2:34] Route to the cool watch founders were supposed to be doing and thinking about it i’ll give you a note core tube in give me some mothers,
you know a start up renting a shared inspirational breakdown is a temporary organization.
Designed to search repeated polanski business model collection interesting definition.
[2:57] What is the temperature startup is a great organization.
Because a lot of sadness couldn’t forgot the goal is not the have free food and you dogs in the office send a cool place the word.
Startup is not coming she real hard to imagine but i gotta start talking shit to become a large corporation.
Org virtua what are the events somewhere among their what is startup is just a start are because it’s designed to church.
And let’s also big idea because of him ray lewis when i was in africa jarvis startup wish you well to build product and ship it.
[3:38] Yes that’s actually an artifact that up.
Search and find answers to some things and so what’s that searching where is searching for something that’s repeated,
it’s working for subway call repeatedly and skill by business model business model is kinda cool are the latest startup.
[3:58] A business model artists all the components back great value for you and your customers when can you let me break it down a fancy word for word,
who are your customers what’s your distribution channel what is product market fit so those customers that is what features you’re my sister live really care about the bali hai what’s the revenue strategy how do u get coupons through them what are cost,
activities resources etc you need to know all that stuff.
Show the function of a startup is the answer all those questions i man find a beautiful on the scale business model that actually generates money revenue your future.
What should understand that when everything else is kinda all i got it you know i’m just not shipping and building something i’m actually treating us canada strategy disconnected executions.
No idea steve.
Really bro to life in the introduction i loved the mention of the joseph card more heroic fashion faces because it’s funny it’s something i noticed when i first started the show it was.
Reverse actually the original show was interviewing want bears in startups.
And what i found was exactly what you said here are the heroes journey applies not just to starbucks too i need meaningful adventure because what if and was it was it always the same story in a few introduced that way.
[5:22] Are you listening is not familiar with joseph campbell,
who is going to banana from college so should just do it brighter who basically noticed that almost all meds.
Should i bring an agent history where they are rendered and culture chinese okay how does same basic heroes journey,
we’re here open ears of calling ben turn down good invitation to the calling and then something traumatic happens and they put together a set of companions to my got a question i got through that shit is so tests and trials and then they’d,
reach the goal but they were wasted in letters reborn.
What’s the story of moses and also the story of luke skywalker and everything in between is the exact what’s the story about printer it’s what you want to do it and so what you understand.
Add apples to order here.
[6:16] Youtube and go when explaining figure out what is that pattern and how do i optimize this shit goes bad and what most interesting.
It’s a radically different pattern that what investors in the twentieth century was telling is the journey was about,
you are absolutely wrong this is still in the drawer people think we’ll need to spread your boots while nothing wildly enough
in order to have a successful you flip that marlene said that no she this is a repeat of a model.
The key is that winters recognize their start-up is a serious on test a hypothesis,
what losers blindly excuse original product management an introduction methodology what i find unbelievable similar was not only the startup methodology.
[7:04] Corporate entrepreneurship and innovation with a bigger organization is the same thing on thursdays two different modes of being the absolutely class with a large corporation so i got a very funny story is,
when i start working with large companies and government agency almost always some kind of award,
external entrepreneur’s who accomplished something spectacular you know there hey best person work because all eyes in the system and got damnit search you know what is the kinda hundred euros.
[7:38] What do people do this without realising that they are celebrating
record system is dramatically broke it because i get insurance a way to escape you are fighting the system in road warden grams are beating the system,
what exactly should a broken something wrong with the system but no one answered me go that’s great know what’s going on with your current business.
[8:03] I’m asking because whatever you expect me to use i have is where we are it’s reviews that a startup isn’t a smaller version of a large company.
[8:15] Because words companies execute your business model but startup search for them,
is there start working with corporations and government shit i realized will be true what time is our conversion startups,
can you the fish that startups to let’s go back to the left because i got a great way steve two to pink
the challenge is the course title of white van because this really bring it to life when you treat a startup
like you do with a predictable business model where is what happens when a band for your not familiar with your prob remember is that of a repair my last half of the twentieth century and the internet for obama
some folks decided to do,
what should i wear a scarf now understand what you’re still have not been reimbursed rebook the grocery stores but these guys already cost the eight hundred million dollars started building,
massive distribution centers throughout the united states still gonna make that happen given the evidence says they were getting early customers what is,
no customers required by the way they thought they would but it didn’t matter just had a plan airspeed the plan and no unfortunately they were dropping all the groceries in the business plan,
because people were treating a plan and they were acting like a behavioral and so the complete burn through a hundred billion dollars of cash.
[9:41] Request to ignore the data about customers just kinda sad we gotta plan your products as i would like a ride water but we’re gonna go do,
and i cannot lie to the trap of someone that we send about a startup let’s see that and talk about their nine day distance but before we go there.
You mention the product introduction model cancer stage product development stage alpha beta testing on product launch days until a few days,
is that what you’re century there was a way to manage product that was well developed it was called the waterfall development model.
It’s a new build products in cereals you road out of specifications from maybe marketing will the market requirements documented,
you had the engineer engineering building across the road back there a building with a project the web for pickles the alpha task beta testing first response yet.
And i was called waterfall because when first stage to stage to stage.
You can’t get web service to getting see products and password is alpha and beta who is actually engineering want to feedback to see if the product is well designed you have any blogs and need you to explain stuff,
need to be fixed but the features already been determined the way back on day one,
can you were shipping whatever was in somebody’s mind no are you using earlier.
[11:09] Help which works great it’s kinda stupid idea when is the problem and solution are well known.
[11:18] Before you start.
[11:20] Where can be cases in a large existing computer when your building weigh twenty eight version of the same product and adding new features that you know customers ask for any advantage,
wonderful was sent to completely out of idea what a mistake while startups investors selected large companies instead,
large countries do waterfall image stretched product can understand the vision more funding reservation what can go wrong,
get me falcons odds i will use nice wide raise money will giving kylie money and bill writing income statement and balance sheet gas lol forecast rectangle forecast rate,
end working so kiss on first shift because obviously anyone do anything we need to worry about whether a building is big enough to hold the bags on monday better gonna come.
[12:15] What really happened some course is that enough startup no one noticed when are we getting loaded the difference between startup company which companies have audits information.
You know we’re just think u distribution channel you know what they’re buying you know computers in a startup you don’t have any of that.
You have a set of beliefs in saigon day one startup is closer to watch faith based organization be there anything else i can religious organizations.
We have investigated.
Select star all we have is a serious of an estate i bought these which is a fancy word for word you’re saying about most stuff.
We might have a pink or piece of technology could you actually yes he will the customer just say you know how to price it in your guessing more importantly what features those customers for guessing about my want.
[13:11] And so what are you observe days we need a much different process than waterfall biggest by the time we share the product.
We are almost always wrong about always stand by was the standard bottle and i got for twenty one euros in fact.
Every time to print the world the back wasn’t tired and started thinking about the nature of innovation and entrepreneurship.
Add my experience of actually building alternatives to dress.
And how you gonna write and how startups for getting volume by this time i am retired am sitting on words and watching lots of other companies,
i’m realizing that this model but we added some play widely adopted from large corporations what’s up complex match.
What startup do i add a light bulb in our that said we needa run to wilson on methodology it was radically different from just pay,
making assumptions that everything we say yes correct.
What is the population basket used to make a great business plan and then i realized that.
[14:18] Christmas plans still be talking universities but more likely in the english department because they were the best examples of creative writing quick where do with a great about writing exercise,
what is making stuff up how to convince people remind had a great feeling it anymore it’s either to,
what original possible way you could’ve predicted the future resume most often almost ninety nine percent of entrepreneurs,
finna go to gather data reset,
what is that created just the huge amount of the infant mortality meeting startup hello when are they shipping that is a little more research happens and corporate intership innovation hotel lima
any indirect way i have to thankyou because you help me leave an organization i working for almost a decade and.
[15:09] What happened i see i had read your work and i did read your first test of this model which was a very greasy will talk about it a little while.
What did rod sterling startup as well as like don’t look at the whole new methodology of how to do innovation and big corporations here.
Like you said with those awards were they celebrate some corporate innovator they said oh
you need to go on a course on how to do waterfall project-2 from set it was like the systems broke it is like to have to re train this poor guy is going on this crazy new way of thinking so many great ideas and great concerts are still born,
i’m what you said here ready resonators once a waterfall process starts the proverbial train has left the station and the product is nearly impossible to revise as a rule
the train can almost nonstop eighteen to twenty four months or more and interrupted,
what changes are new ideas that matter and that is the problem and what will not change that in startups would normally drop it but methodology.
[16:11] We are done with the high dose go with large corporations.
What is it use to be a wine you would say look at you know your business plan go we’re hiring a sales and marketing will be big enough vehicle in general.
Err what’s so by doing that,
you got yourself into a traditional model of itself will obviously you know we’re just after the product is built over need to do is set up and therefore everything will come out great.
And what’s more important is that we are so glad if you didn’t come out great.
It wasn’t the fault of investors are playing order a bottle we do you have a word for the time,
obviously there’s to swap of the individuals set the way we fix the issues we started firing people were the first person we were liars the bbs out,
and i really were not making number but nothing wrong with the product that’s that’s what we asked where abouts what we got.
Add a new vp of sales is a big idea would come in and go when i was stupid the same wine.
They would actually have permission to change something because of a new person.
[17:22] When is that gonna work with fire go if i would come in and only then will they have permission to change the position and the fact that the work will fire them founder of the current VP of engineering,
what is the only time we were allowed to do something we’ll call but if it is one we fired people.
[17:42] Make it glenn is now our first instinct is just play things of a cross sis.
No we’re gonna fire part of the planks first you know we dont care what brad it is actually fire and part of the plan,
it’s as if darkness were the customers’ what was forward fire of your sales,
what’s good figure out if this is the right customer not the right repossess a house that didn’t work we should a futurist question is what will it snow what are apart of the product.
[18:15] Oh no.
Just think about what about shift in mindset the idea that should i got a plan where people wrote the plan it’s not a phase based organization,
we need to get characters rapidly as possible to replace faith.
That’s the whole idea of customer development across from discovery know how to getting away and says no facts inside your building so get the heck outside it was just searching your mindset shift.
Thinking about what a reading why we want to do that were the smartest people in the building.
[18:50] Select hello everybody course you’re the smartest people in the building you rent peoples smartest people on the block what’s your name be your products let them know.
[19:01] Because you’re not smarter than the collective intelligence of your potential customers and a smart you are give me the same business last week,
you know know everything about how we’re gonna what else can be working as what’s the right price for features so what did you get out,
and search validate the problem you think your solving this problem by other people would say that we have got a problem or need,
org yes we pay for that i meant number to anybody other than you’re building
what was the bill would actually solve that problem search that when people hear about your see if your pupils dial ate my grandma’s provide the color and your not leaving
until i get together by this tuesday to play with that
i love this steven guy is a great quotes were you bringing this life into say this mode which is search mode and braces failure as part of the startup process innovation process and existing companies that fire executive is when they fail to master plan
we keep the founder’s we change the model not change the founders and that’s how you validate that but this is not rhonda going
your current departure from alberta and oil pump any tracking silicon valley.
What’s the total duration or what’s a venture firm in brace this idea anchors fire the plane is actually adopting lane.
[20:23] We started generating unicorn that is company’s where are your options north one million dollars,
generate the green change i want to make a backup babysit them what should we change how we treated as a nurse,
so thank you all the unicorns please send your money to steve if i have been making contributions but seriously it’s change the notion of what the role a founder where,
adam should i call investors with paul right address can use to be a futurist from the plane.
[20:54] You’re gonna be the exterior though nowadays mostly minimum gilbert service still be in some of actually understand that,
awesome see what happens that is almost no plant that survives first contact with us,
almost every startup of doing something different than the assumed paper doing on day one huge concert.
What are you trying to reach the summit twenty century what were you what and then move the picture i dont show ends up what we do about that.
Volume to speak alexa remind me to let me know.
What’s my real eye opener for me return JAPAN venture capitalists know more people in business course would star otherwise recognize this work focused on solving the problem.
[21:47] Is there a credit you’re real is the question app the mobile but they were making too much money is using waterfall and having this NASA.
[21:57] Spell your product and want to change anything.
And ironically this profession where they should we start it everyone should i got was frustrating and kind of funny.
Yes they said steve we consult for the world’s largest companies hard it’s six people well where was answer that.
[22:19] Yeah what is the nature of business professors consulting practice using the twentieth century use what were the console for startups a consulting firm license will i get massive amounts of cash what that meant i had no hands on experience of how different,
startups actually work from large corporations and therefore the intervention or lamb.
Let me come from academia research it came from practitioners like me and eric kinda said no this isn’t how the world works your icenter data set you don’t have enough data to understand how startups a large companies are different.
Now course st people have got it now t chui have that your in rehab center in the top ten schools,
which store can bring themselves to call i bet so they name it something else if there even a place inside the reef change my cloths but i get no credit but i’m more than happy that the parking raise our find it amusing.
That we truly have change the nature of innovation and entrepreneurship.
I think it’s an education you have to remember i’ve decade ago the capstone top class with jake at university was how to write a business plan.
[23:30] Ms that no one recognized that.
What are we teaching something that no one reads and no one will answer but i still like you write in one of the reasons i want to work state boys.
This is the same as interpreter here for corporate innovation.
It’s a start up with a big business but it’s much much more difficult because at least a start up handsome autonomy is the VC maybe but pressure to execute a plan
what’s the vc in a corporation is the traditional business and puts master pressure on the interpreter or are there corporate innovator he wants to change the business on his made to execute your plan and or made to execute
to the metrics of the business as usual,
yes show me what kind of understand what was broken in large corporations government agency and the problem is when we,
is accurate the innovative people in large companies and governments were you say that again.
Nearest barber your diffrent language probably be more innovative people and companies and government agencies use your startup.
[24:35] Terrific idea it snappy dont have that same talent ubican the company was individuals to work there have different
who is rush profiles i want better families mortgage your kids trucks find your college education on it but there they were.
Rolled minced companies open nature of the corporation is execute a repeat process play a sound scale.
What is co exist for scale.
[25:05] And when you have scale your process and procedures manual metrics u ok are u guys in financial metrics internal metrics and you broke culture,
where is prince’s thank you finish turning the current people come to work to do withdrawal.
That’s not where that’s correct result and the multiple levels is a good companies historically have help,
edit yo ninety nine percent of most people work will go again during the job going home and living with us alerts.
You can change the reminder only crazy people with red and go out into the unknown and and chaos and start something new.
What are the best takeaway corporations designed historically underlying historically for operations instead of stadium environmentally scale.
[25:59] And by the way that will go on forever except in the world is every study state.
That is you never have a monopoly forever you know maybe google for the next two hundred one euros microsoft but they haven’t replied to your post things tender the other companies had a baby eight years old boy
business models eventually collapse.
What make all apps where you state motto of crosses procedure etc doesn’t work anymore.
[26:29] So how do you view with the instruction.
Create a company or governmental agency you wipe your company begin playing card doesn’t go out of business on shopping is replacing so.
What government being disrupted a government agency,
that’s a different story that’s a national problem twenty three years ago supervisors touch with you he actually gave us a label what companies do recall bit and dextrose organization.
Latest companies need to figure out how to execute not in peril.
Then quit christiansen go with this is well company need to do both things and they are very different big ad,
request the motivations are different because the price is different because my named search for your friend its very hard for a company with execution and he couldn’t bring the world’s best executor,
what is disrupt the world that’s why not everybody was.
Every large company that stages of transitioning where is your technology or markets.
[27:39] Almost always fails to make that transition at all that but most of all those computer companies in the nineteen eighties that had to do with personal computers,
only one major company managed to make the transition i was in the same with the light weapon mobile,
everybody shall be included microsoft news seven companies like google and others emerge that figure out search the mobile pane conference software companies just gonna blow it,
an all-star webpage because the original problem of innovation dr.
Revision dr news what’s the rules and processes i need to know where she how do i set up an am be doxed or organization what’s the role of leadership.
[28:22] How do i communicate the mission what are the processes and procedures that need to be set up in lol,
what’s in the innovation process how does that work is there any information i find the company.
All those things need to be done is astrology from the top down the big bang,
royal caribbean remember wit.ai about we celebrate ross who is out cross niggas was being discussed on that where do i go about sea level the results process,
create a vision and a gang thirty years ago mackenzie actually gave category,
a nice orderly for it if you’re thinking about how to do automation internet and internet be dextrose why that again think about word meeting to go walk at the same time that the three horizons of innovation,
arise and what it is how do we add more features to existing products or how do we get more existing costumer search better supply chain a checker.
[29:18] Rushing to ways how do we get it jason markets or how do we sell our existing product so new psych meds how do we use technology to find new opportunities.
[29:30] Arise and three rd centuries why amazon is great an apple watch a great app how do we spend a great internally new businesses who is the new business is disrupt yourself.
That’s what startup do i use to be that took a three years now it’s back up just do that was almost overnight using existing components
what getting those three garage and leadership away to think about maybe this is a framework i should be thinking about and by the way can you send better pictures here.
[30:01] We’re startups just need to generate all the stuff internally company skip partner with taking back what i wrote a goodbye i pay goodbye products.
[30:10] Make a dude what’s worse things than i want to add someone to a successfully but for most the message hard because it’s a major mind shift.
[30:21] Reverse you level in words and i just want to remind everybody has no large corporation.
[30:27] Grab your ceo and board is your food arrives its world class sex you peter’s.
When is the founders of your large corporations are typically long got stop for tech companies order still running but it almost every other and whispering to fenders are gone and the executor running the show
most off in europe or is that with what flights were bank finance people.
We’re almost no crazy people and i hope you rested good if you order no charge for your government agency doesn’t have won six the one three crazy people you are not gonna be able to deal with this trauma.
[31:08] Can i choose the reasons i think your work is no evolved to become so important for carpet organizations because i know he originally it was for startups in understanding on how to build it companies,
what now it’s hard to reinvent companies in a while because we live in this world of the sacramento which is volatility on certainty complexity and beauty,
and the top rated business is increasing and getting faster and faster there for.
[31:35] The models and the ideas and the mindset of what you told kebabs becomes increasingly important within.
Organizations that already have established markets established business models etc so it’s mine set needs to look into organizations that are well established have conference hall of revenue and i was the time they need to innovate
yes you set a perfect world of chaos and ensure the world of christine execution i mean just think it would package goods company you know
so it can work all day you on the brand the brand loyalty and you had retail charles and whatever,
that’s on god i will send and generations your boots just don’t care about grants branch can be created overnight,
retail chain on since now you know where is up and reachable does not function well that’s no longer FB,
order placed an order and for large companies have been since i open in the twentieth century you completed with your peers are a large company is.
Who ever thought about startup and second hand jura procter and gamble order i will reach out of the united states like macy’s or something else now you’re dealing with startups in open u tube,
unbelievable est what are the things i thought we might talk about was the noise in delhi sense of new product introduction model because this really bring it to life.
[32:56] The challenges and also the challenge with just being a startup but also in a corporate organization and then browse start looking at some of the solution.
Show number one is just thinking about the things that startups tickets where i won’t women’s center.
Add in a little drawstring get a ride to twenty first,
who is number one because it is so you know where is my watch and that’s kinda driven some of boundaries and when we leave probably understand who they are what they need and it’s important because of allen arrows,
hash and then thats what is the start something from scratch on a napkin.
What are the water started his no no what’s there really really really a true domain expertise on guessing about the chris bravo and sad that makes this of faith based organization.
Sanders need to turn these glasses of the fact that she was possible like getting out of the building and asking customers if your purpose you are correct,
and changing with my parents.
[34:00] Cancel the second one we talked about issues it’s a deliveroo the first one is the founder of grapevine leaves is not understand customers i know what features to build.
So if i know that customer’s icenter all those pictures of us need measurements show me what we now call product market fit.
[34:21] Would you should be searching what may have to zoom in a bit,
read me a mistake as we designed and built the featured product using waterfall without ever leaving the building and you can almost guarantee you those features and those customers in the mirror.
[34:37] The third sandals focusing on the product launch date i told my investors on my team were watching on direct.
N battery removable they were gonna pick that some of them you’re gonna see ya sobre watching the product you’re regarding what is orange than we were.
[34:56] What is that it doesn’t mean that you actually understand product market fit.
[35:02] Give me know you’re sending the data that you are be announcing your drink something is very wrong.
What is the result was like winning the gun to your head and announcing that you’re good a what were you do that and how long take about sending the data waterfall.
[35:22] Measurement set up for icenter which is a sample size and execution instead of asking learning of innovation.
SA said earlier existing companies can you list because i understand customers and probably product features you need.
What startup what the goal is to find what we called product market fit.
Do i truly understand who my customers are do i truly understand what is the pop feature services are things i wanna do by your work and it’s no,
keep searching procure i start execute it doesn’t mean you’re engineering and development group isn’t building minimum viable product,
what is the event testing oregon and radio show i find product market fit is mistake four it quoted i pull from this one but i think its so important for those corporations is a startup culture and emphasizes get it done and get it done fast.
[36:22] So when somebody hired as the head of engineering had a sale site of marketing into those businesses they assume that’s what that hundred four
other experience is relevant to this new venture and all the need to do is put that knowledge to work managing the execution and that’s the problem,
i actually jumped and sensex will contact the sender by but you just talk about confusing traditional bridal suite startup,
switch on other big light bulb from a higher VP of sales when they think you’re supposed to do not doing research you gave me a title that says sales,
what’s ours and asking questions
sales are here sorry what do you think your parents you want to buy it let me know when you have more sophisticated way where can i drop over and watch where i need to request for authorization errors are present
what is the activity center what do you understand the customer.
So instead of watching people and handles well understood your customers with standard presentation startup have very bad day one.
And so we were gonna do discovery request for validation.
Sales and marketing titles kinda confuse people who are yous execution that’s kinda shit confusing traditional job i don’t want startup needs.
[37:41] Send hey bro just back up and running i had that doesn’t allow free trial and error.
[37:49] There’s no business plan one great america investors.
Add to rewards and copy you sent or magistrate provide a pretty big printify milestones you can track financial progress from the website background cancel.
What is metrics are you spell you first start up.
Because your call is none of that on day one here who was the final if you remember to find a repeat of steel business model.
You never know seven hundred a nigga go execute a plan.
And so i know plan that doesn’t allow you to read it when is the pac for disaster.
[38:29] Seven is just actually getting a sales department ppl and was gonna repeat the ideal is there when your hiring what the wrong skills following product market fit.
You tend to focus on learning rather than focusing on learning and then number is premature scale this when i see you when was company what.
When should i capital,
if you just present your gonna six e e you end up baking and gold burn rate that is just the amount of money you’re burning every month so may you gather the revenue for users or whatever you are just gonna come what again.
And base model williams little room for error when i don’t know where to get integration.
Add finish pressure sometimes comments from your gordon investors as well
no yours all the money just gotta execute it happens and everybody will give you hundreds of millions of dollars huge your friends know you’re what’s my ego execute,
where are your scales guess so just incredibly painful minimum and leads to layoffs or just uncomfortable stop.
[39:36] No loss what is management by crisis.
Why that’s why you ship a product and sales are happening to the plan this whole cycle of fire executive start happening,
add new dinner is the real problem but sunday wine no business plan right first contact with customers.
Create a suction acquirer series about sports startups actually start everyday or change your business model when i get results.
No it’s not a crisis it’s just part of oregon discovered and so that sparrows are not like a fun place to be your for the falcons or for anybody work in the company.
So nose about kind of nine startup did we send some thriller million others now it is in this and the internet cafe there understands i probably have a penis water making too much money.
What most others don’t understand you take money from someone their business model has now become yours.
The big idea because now i just tell my students in computer work with go up to the whiteboard and drop me your investors or VC your restaurant what’s your model for making money.
[40:47] What do you mean by just wrote me a check your what broke you check for eggs million two hundred thousand show me how much money they want to make and buy wine.
[40:56] Why don’t know,
oh you’re screw you have no idea one thing you said there is the last step when a complete the graduate so when it doesn’t commit then it listens and follows your model.
And oftentimes what happens then it wouldn’t is the version of shakespeare and try to be as we realize they have health
what is potential for a large return on their investment all of a sudden
deposited visionary entrepreneur it’s no longer dim the right person to lead a successful company he or she has nurtured from cocktail napkins hijrah directory.
The board gracias.
Is the founder and his and her nh customer understanding training him or her for a suit and experience operating executive this is something we see time and time again,
it still happens if not gotten much better as i said andreessen horowitz and then other bc brunch spot the learning how to keep bedroom place,
what year was the light bulb one on for me startups are not what activity remember i said there are a temporary organization.
[41:59] Don’t you think if i had a bad phase one for a startup business search for a business model.
Calculate remove startups this search for product market fit that’s a big idea.
That requires customer development skills pampering cash the MVP is minimal viable products coming out of a building etc requires a founder founding team how do u spend swift talked about.
[42:27] What do you find product market fit and decided that god is not done forever.
Now your review need to start building an organization that i can execute hey i forgot the right questions and now we need to start selling.
Now you need to start ballet by selling now we go into execution mode use that same the who is great with finding product market fit,
read executed that is how do we get to continue repeating rows and we grow from ten fifteen people or people with property how do we go to five hundred people.
When we finally find a reputed go on scale the model that you know cash-flow positive how do we scale the company.
[43:15] Search executing an scale girl are the different phases number one is the founder you get a memo.
Remember to where’s your name and get the training to get from one place to another
turn your creator not find a product market fit me in business but when you get to the next step are you at sligo the building department spending in,
sales comp plan hiring sales people no matter why do i write the onboarding HR manager for a company.
When am i the person to rada can a hundred billion dollar company hundred million dollar company,
it’s not that you were a true never got the same team and same founder’s are great of each step without coaching girl or some other skill kind of instruction.
And so it in the past the bitches recognize that essentially works great but you know we’re gonna bring the suits i help you with that,
tell me when google and facebook came around i said ball nell will bring some will you replace bulbs bringing need a receipt to my guards spend on google or to the operating officer like cheryl sandberg on facebook.
Where are we now recognize that you know what you’re is no real magic year if you’re smart very smart is the founder.
[44:39] What did i train and old do you think you buy actually give me resources you get funding in place he bot resources that can help you learn how to teach you how to do sales and send you a review group so we believe you and place.
It’s what’s changed in the twenty-first century is something really interesting in the twentieth century could have one like the idea.
And take it all the way through product market fit the scale to growth.
Who recorded the event that is making money was being a shopping mall open ipo one and no investment banker want to see a twenty three year old will not,
activate steve jobs will hire to have a job to warsaw PSC or when they want to reach out because no one would believe him so they wouldn bringing a suit and what was interesting is that the founder wasn’t there,
that’s same product i wash three four five years fast forward to the twenty first century ideas address to last year.
[45:39] So what else am in a competition and your technology nature changes so rapidly it’s founding team isn’t still bare continually create a new product that ideas a business models,
you’re gonna be out of business before the investors good capture any return on their investment.
And so now there’s more evidence to say we still need that and a bit of time not only in the company but in charge what kind of bulk climb up with other skill sets will use to replace important.
It often explains those people who were in organization to listen to the show
they are frustrated because they are just painting by numbers execution mode when that’s not what i should be doing they should be the people out exploring in search mode,
trying things learning mistakes learning by error bringing new ideas is such a mr two different you mentioned the amber dextrose organization this the extras individualisé well as different types of people for different modes of the business
yes when you don’t understand that the business shifted into the next would your probably gonna take your company order here and be replaced.
[46:46] So you always need to be asking news what model is and i still doing the old stuff or do i need to be learning new things.
[46:56] I’m going to replace so i thought we would share the customer development model.
I need the context of lynn and the world’s first lean startup which is in you which were co-founders will increase who i meant the author of the lean startup book but you,
where are the early investors in i love this and you said sure all invest bus.
As long as you test my new customer development model and that’s what these guys succeeded hugely yes i can tell that story about my child in the context to.
What winners we’ve been talking about is the whole show in i want to go back and talk about the three parts of blaine MN talk about how we’re barbie and alexander elder brother came the only method so.
Will you start a post three parts.
[47:47] What is the part type of anurag when is you know chris miguel which simply said is again there no fax inside the building.
Let’s get outside but what we do when we’re outside the building what is your looking for what things do we want to ask how do we find out you know ask these questions and show,
the first book i run four steps to epiphany we did.
The mistakes were making which we just talked about actually articulating the process step is the start of orders manually to book you reading fox about an employment process that so now i understand why the windows.
[48:27] Which part of what became and said we’re outside the building talking to people maybe younger show them,
you’re real and incremental things your brain because you’re using a different method called add engineering which player do that so i can you convert aud minimum viable product.
[48:46] Turn all the blame if she is well how do we know what harper shoes are we best thing.
When using reward business model of what we’re going to alexander austin wilder.
[48:58] I recognize that what you want to take an idea or a technology or something from market where shall we probably need your id technology is not the business.
Business is the customer’s request below the product having price and what are the cross when you put together a simple program called the business model canvas that allows you to canada,
right down all these guests or recall how are your soft lips melting turns out to wind startup is nothing more grand all three of our works.
Alexander ostrow business model canvas kinda write down your hypothesis use my customer development process to get out of the building and ask them.
Recent observation that what goes with customer development is not waterfall engineering graduate engineer.
[49:50] No that’s the method that we are now the largest how to become widely the okay and it’s party got started but there are you good quality.
No but story of how this happened we really understand no prospective well.
Is it kind of wrote this book four steps to epiphany and start to cry as this is a quiet said.
[50:11] Uc berkeley vs school where jerry and go ahead and shift a part was nice enough to allow me to create a crash,
no no no i’m not well harvey the founder of a company called u a new startup idea is new VP of engineering degrees about.
What startup investor that before and well before that map of engineering of mine and one of my companies,
NBA wanted to get this game company founded.
[50:39] And after losing money huh this company instead OK let me know what you guys but you gotta check my quotes
do what we did why is company which truly wise i mean it was successful is boring did we sell
we live in an xl what are we having a boy riding article i read the average memory what are those mistakes,
i said i got a different mapping then because want my money take the class,
add global cruises have to drive from palo alto all the way up to berkeley up with what you notify you like,
eric said oh my gosh you’re so i can switch yo are we screwed up and,
which team the one you know i understand he is there something that would waterfall,
what is the century now were starting to do some natural is the skip this is a waterfall.
Just for you or show it to people who probably don’t understand it but that included me about why is remember waterfall is a step-by-step process that will not change start a new word getting enough.
[51:49] What are your engineering said no we then products nail incremental europe light,
getting steel bracket needs that were hardware or software so why are doing customer development,
it was hard to actually show up po kung who is this what you had in mind or what if i changed your SSO the product was add joe as your request for development process wise,
and your going to the academy bottle the business model and so erica and barbie.
[52:20] A recording engineer and became first practice roll in start up anywhere in the world happy was when compared customer development financial engineering.
And pin you became a test but i was sent another board of directors and run experiments of eric would actually do all the heavy lifting to do if i get any acrobat startup eric became the world’s biggest brands what is the weight.
Actor excited i think i discovered grab alexander oscar walters model of a business model canvas was the last message,
yes testing hypothesis but we did not find exactly know what my pockets is their any other simple diagrams that everybody i think mostly understanding of the addressee,
who is brooke business model generation y box erica recent windstar basketball business partner generation,
it’s kind of been re trinity what the caine lane,
it really was the three of us working together so i think i should leave then develop a substitute for the management stack that build for a hundred euros at their school for execution,
you think about it there was no management stock for startups or further of masters,
show our work with the beginning readers know whether child support is sent rate on innovation and new graduates or maybe you can on your half order a been a hundred years later you’re thinking about it.
[53:50] Fast forward two decades now your a hundred bucks and we wanted to make sure that actual and whatever and i think they’re gonna hire alex you’re incredibly proud that we help.
Revolution about and just a whole new motor think it and i keep waiting for somebody to do one better and go when should we come,
what i planned vs scanner the best practice right now if your founder of a startup and trying to build motivation a large company.
Next book on innovation dr and will be focusing on what actually do this to enlarge corporations,
because right now in large companies were doing is copying startup sending i don’t sleep with the heater not real motivation that’s another podcast another store.
Yeah i will do them again and alex is guggenheim this album if you were exactly you are great is starting to the business while ada was,
play professional sports in advertising in my early thirties on the first books i read,
i didn’t read all the nba books i can read all ways of working and they are your books which is really interesting where it was ericsson
what’s alex’s everest old boy why is business a dessert the books need to be reading because the books that are most relevant to the business market today and there still unbelievably relevant you saying it’s been an absolute pleasure
talking to steven having on the show and what if we want to find out more you plan a of.
[55:13] Studies and articles and videos and your incredibly generous with giveaway this knowledge where can people find out more about your work,
turn on website that was designed in the nineteen cents freaking cold steve blank but where close state like that so it’s not hard to find,
me be over the course of a laugh.
Where caps of a type of books to read some fun stuff and the secret history of silicon valley,
tell barry that there is a link to all the lights my student show ever produced any good finds that is white here dot net slash is blank,
and black backpack,
star wars stories of how i get actually came together so i figured find some interesting material it’s been a pleasure talking to order of the four steps to epiphany
holding the capital of the tail and the startup owners manual and a host of other stays blank podcasts articles in central steve blank
thank you so much for joining us and surrounding areas but.