Based on the book, Startup Owners Manual by Steve Blank and Bob Dorf, this touches on the final of the four steps - Company Building

1. Company Building
Final of the Four Steps
This presentation is made possible by the support of the American People through the United States Agency
for International Development (USAID). The contents of this presentation are the sole responsibility of Rick
Rasmussen and do not necessarily reflect the views of USAID or the United States Government.

2. Company Building
Customer
Discovery
Customer
Validation
Customer
Creation
•
It’s now time to build a mainstream customer base
•
Build the company’s organization and management
•
Transforming customer development team into functional
organizations
•
Creating fast-response departments
Company
Building

3. The Company Building Cycle
Phase 3
Transition to
Functional
Departments
Phase 2
Review
Management /
Create Mission Culture
Phase 4
Build Fast-Response
Departments
Phase 1
Reach
Mainstream
Customers

4. Phase 1: Reach Mainstream Customers
Phase 3
Transition to
Functional
Departments
Phase 2
Review
Management /
Create Mission Culture
Phase 4
Build Fast-Response
Departments
Phase 1
Reach
Mainstream
Customers
• Turn earlyvangelists
into mainstream
customers
• Manage Sales
Growth by Market
Type

5. Earlyvangelists  Mainstream Customers
• Go-to-market strategy
–
–
–
–
Do you need to educate the market?
Adoption plan and costs
How will competition respond?
Positioning and branding?
• What are your capital requirements?
– What’s your cash flow / burn rate?
– What’s your product lifecycle?
– How quickly to hire?

6. Phase 2: Review Management / Create Mission Culture
Phase 3
Transition to
Functional
Departments
Phase 2
Review
Management /
Create Mission Culture
Phase 4
Build Fast-Response
Departments
Phase 1
Reach
Mainstream
Customers
• Board reviews the
CEO and
executive staff
• Developing a
Mission-centric
organization and
culture

7. CEO Characteristics by Company Stage
Entrepreneurial-Driven
and Discovery
Mission-Oriented
Management
Process-Managed
Execution and Growth
Personal Contribution
Superstar
Leader
Manager of plans,
goals, process and
personnel
Time Commitment
24/7
As needed
Long-term 9 to 5
Planning
Opportunistic and agile
Mission and goal-driven
Process- and goaldriven
Process
Hates and eliminates
As needed, driven by
mission
Implements and uses
Management Style
Autocratic, start system
Distributed to
departments
May be bureaucratic
Span of Control
Hands-on
Mission-driven,
synchronized
Distributed down to the
organizations
Focus
High and passionate
vision
Brings order out of
chaos
Mission
Focuses on fast
response
Execution
Focuses on repeatability

8. Mission Statement elements
• Why your employees come to work
• What they need to do all day
• How they will know they have succeeded
• Contribution to corporate profit goals
• KPI – Key Performance Indicators

9. Phase 3: Transitional to
Functional Departments
Phase 3
Transition to
Functional
Departments
Phase 2
Review
Management /
Create Mission Culture
• Tactical
culmination of all
Phase 4
the strategy
Build Fast-Response
Departments
Phase 1
Reach
Mainstream
Customers
• Engineering,
Marketing,
Operations, Sales
• All directly
responsible and
measurable

10. Crafting roles by department
Existing
Sales
•
•
Relentless execution
Market Share
Resegment
•
•
Marketing
•
•
Business
Development
•
Create end-user
demand and drive it
into the sales
channel
Ensure channel has
the tools
•
Build and deliver the
“whole” product
•
•
New
Generate revenue from
an existing market
Identify and sell to
“beachead” customers
in the new market
segment
•
Help sales generate
revenue in existing
market
Create new segment
from an existing market
•
Adopt a niche market or
tipping point strategy
Build and deliver
“whole” product to
differentiate company
and product in new
segment
•
Build “whole” product
•
Identify and sell to
“beachhead” customers
Sell to narrow market

11. Phase 4: Build Fast-Response Departments
Phase 3
Transition to
Functional
Departments
Phase 2
Review
Management /
Create Mission Culture
• Implement
Mission-centric
Phase 4
Management
Build Fast-Response
Departments
Phase 1
Reach
Mainstream
Customers
• Create an
“Information Culture”
• Build a
“Leadership Culture”

12. Mission Centric Management
• Mission Intention
• Employee Initiative
• Mutual Trust and Communication
• “Good Enough” Decision Making
– Don’t worry about every last detail before pulling the trigger
• Mission Synchronization

13. End Goals
• Growth beyond a startup into a sustainable company
• Alignment between management style and company
phase
• Understand your product life cycle
– Continue to set up new pods of innovation
– Keep using startup methodologies to refresh the company
• Congratulations on getting this far.
• Keep it going!
• Build a great company…!