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The Democratization of Entrepreneurship,[object Object],Steve Blank,[object Object],Stanford - School of Engineering,[object Object],www.steveblank.com,[object Object],Twitter: @sgblank,[object Object]
This Presentation Combines,[object Object],www.businessmodelgeneration.com,[object Object],www.steveblank.com,[object Object]
I Write a Blog  ,[object Object],www.steveblank.com,[object Object]
A Few Short Stories,[object Object]
Startup Constraints,[object Object]
High Cost to First Product,[object Object],Startup Constraints,[object Object]
Buy expensive workstationsBuy expensive development tools,[object Object]
High Cost to First Product,[object Object],Long Time to First Product,[object Object],Startup Constraints,[object Object]
Use Waterfall DevelopmentFirst Customer Ship in months/years,[object Object]
High Cost to First Product,[object Object],Long Time to First Product,[object Object],Startup Constraints,[object Object],Slow Customer Adoption,[object Object]
Customers – Gov’t/Businesses# of customers - hundreds/thousands,[object Object]
High Cost to First Product,[object Object],Long Time to First Product,[object Object],Startup Constraints,[object Object],Slow Customer Adoption,[object Object],High Startup Failure Rate,[object Object]
Startups are small versions of large companiesFocus is on execution of business plan,[object Object]
High Cost to First Product,[object Object],Long Time to First Product,[object Object],Startup Constraints,[object Object],Limited Number of Venture Capitalists,[object Object],Slow Customer Adoption,[object Object],High Startup Failure Rate,[object Object]
3000 Sand Hill Road,[object Object]
High Cost to First Product,[object Object],Innovation Limited to a Few Regions,[object Object],Long Time to First Product,[object Object],Startup Constraints,[object Object],Limited Number of Venture Capitalists,[object Object],Slow Customer Adoption,[object Object],High Startup Failure Rate,[object Object]
3000 Sand Hill RoadMenlo Park, California,[object Object]
High Cost to First Product,[object Object],Innovation Limited to a Few Regions,[object Object],Long Time to First Product,[object Object],Startup Constraints,[object Object],Limited Number of Venture Capitalists,[object Object],Slow Customer Adoption,[object Object],High Startup Failure Rate,[object Object]
There’s Something Happening Here, What It Is Ain’t Exactly Clear,[object Object]
Startup Constraints,[object Object],Entrepreneurial Explosion,[object Object]
Low Cost to 1st Product,[object Object],Entrepreneurial ,[object Object],Explosion,[object Object]
Develop on inexpensive PC’s/Mac’sUse Open Source Software,[object Object]
Low Cost to First Product,[object Object],Short Time to First Product,[object Object],Entrepreneurial ,[object Object],Explosion,[object Object]
Use Agile DevelopmentFirst Customer Ship in weeks/months,[object Object]
Low Cost to First Product,[object Object],Short Time to First Product,[object Object],Entrepreneurial ,[object Object],Explosion,[object Object],Fast Customer Adoption,[object Object]
Customers –Consumers# of customers -millions,[object Object]
Low Cost to First Product,[object Object],Short Time to First Product,[object Object],Entrepreneurial ,[object Object],Explosion,[object Object],Fast Customer Adoption,[object Object],Lower Startup Failure Rate,[object Object]
Startups arenot small versions of large companiesFocus is on Search for a business model,[object Object]
Low Cost to First Product,[object Object],Short Time to First Product,[object Object],Entrepreneurial ,[object Object],Explosion,[object Object],Large Pool of Risk Capital,[object Object],Fast Customer Adoption Rate,[object Object],Lower Startup Failure Rate,[object Object]
Sand Hill Road,[object Object]
Low Cost to First Product,[object Object],Global Innovation,[object Object],Short Time to First Product,[object Object],Entrepreneurial ,[object Object],Explosion,[object Object],Large Pool of Risk Capital,[object Object],Fast Customer Adoption Rate,[object Object],Lower Startup Failure Rate,[object Object]
Menlo Park, San Francisco New York, Shanghai, Israel, Chile, Singapore,[object Object]
Low Cost to First Product,[object Object],Global Innovation,[object Object],Short Time to First Product,[object Object],Entrepreneurial ,[object Object],Explosion,[object Object],This talk,[object Object],Large Pool of Risk Capital,[object Object],Fast Customer Adoption Rate,[object Object],Lower Startup Failure Rate,[object Object]
Not All Startups Are Equal,[object Object]
Small Business,[object Object],Startup,[object Object],Small Business Startups,[object Object],[object Object]
Feed the family,[object Object]
Feed the family,[object Object]
99.7% of all companies
~ 50% of total U.S. workershttp://www.sba.gov/advo/stats/sbfaq.pdf,[object Object]
Large Company Sustaining Innovation,[object Object],Sustaining Innovation,[object Object],Transition,[object Object],Scalable,[object Object],Startup,[object Object],Large Company,[object Object],[object Object]
Known product feature needs,[object Object]
New tech, customers, channels,[object Object]
Acquire      - Talent,[object Object],      - Product,[object Object],      - Customers,[object Object],      - Business,[object Object]
Scalable,[object Object],Startup,[object Object],Large Company,[object Object],Scalable Startup,[object Object],Search,[object Object],Goal is to solve for:,[object Object],  unknown customer and unknown features ,[object Object]
Execute,[object Object],Search,[object Object],Scalable,[object Object],Startup,[object Object],Large Company,[object Object],Exit Criteria,[object Object],[object Object]
 Total Available Market > $500m -$1B
 Can grow to $100m/yearScalable Startup,[object Object]
Scalable,[object Object],Startup,[object Object],Large Company,[object Object],[object Object]
 Company can grow to $100m/year
 Business model found
 Focused on execution and process
 Typically requires “risk capital”Scalable Startup,[object Object],Execute,[object Object],Search,[object Object],[object Object]
 Typically needs risk capital
 What Silicon Valley means when they say “Startup”,[object Object]
 i.e. Product/Market fit- Repeatable sales model,[object Object],- Managers hired,[object Object],What’s A Startup?,[object Object],A Startup is a temporary organization used to search for a scalable and repeatable business model ,[object Object]
What VC’s Don’t Tell You:The Transition,[object Object],Scalable,[object Object],Startup,[object Object],Transition,[object Object],Large Company,[object Object],Search,[object Object],Build,[object Object],Execute,[object Object]
What VC’s Don’t Tell You:The Transition – Founders Leave,[object Object],Scalable,[object Object],Startup,[object Object],Transition,[object Object],Large Company,[object Object],[object Object]
 CEO = Operating Exec
 Professional Mgmt
Process
 Beginning of scale,[object Object]
 i.e. Product/Market fit- Repeatable sales model,[object Object],- Managers hired,[object Object],What’s A Startup?,[object Object],You fail if you stay a startup,[object Object]
Why Startups Are Not Small Versions of A Large Company,[object Object]
Startups Search and Pivot,[object Object],The Search for the Business Model,[object Object],Scalable,[object Object],Startup,[object Object],Transition,[object Object],Large Company,[object Object], Business Model found by founders,[object Object],[object Object],   i.e. Product/Market fit,[object Object],[object Object],- Managers hired,[object Object]
Startups Search, Companies Execute,[object Object],The Execution of the Business Model,[object Object],The Search for the Business Model,[object Object],Scalable,[object Object],Startup,[object Object],Transition,[object Object],Large Company,[object Object],- Cash-flow breakeven,[object Object],- Profitable,[object Object],- Rapid scale,[object Object],- New Senior Mgmt,[object Object],~ 150 people,[object Object],[object Object]
 Product/Market fit- Repeatable sales model,[object Object],- Managers hired,[object Object]
Metrics Versus Accounting,[object Object],The Execution of the Business Model,[object Object],Scalable,[object Object],Startup,[object Object],Transition,[object Object],Large,[object Object],Company,[object Object],Traditional Accounting,[object Object],[object Object]
 Cash Flow Statement
 Income Statement,[object Object]
 Viral coefficient
 Customer Lifetime Value
 Average Selling Price/Order Size
 Monthly burn rate
 etc.  Traditional Accounting,[object Object],[object Object]
 Cash Flow Statement
 Income Statement,[object Object]
 Scalable
 Price List/Data Sheets
 Revenue Plan,[object Object]
 Pricing/Feature unstable
 Not yet repeatable
“One-off’s”Sales,[object Object],[object Object]
 Scalable
 Price List/Data Sheets
 Revenue Plan,[object Object]
 Waterfall Development
 QA
 Tech Pubs,[object Object]
 Waterfall Development
 QA
 Tech PubsAgile Development,[object Object],[object Object]
 Continuous Learning
 Self Organizing Teams
 Minimum Feature Set
 Pivots,[object Object]
 features
 customers/markets
 business model,[object Object]
 describes “unknowns”
customer needs
 feature set
 business model
 found by iteration
Plan describes “knowns”
 Known features for line extensions
 Known customers/markets
 Known business model,[object Object]

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