

Customer Development for Web Startups - white_eskimo
http://steveblank.com/2010/02/25/customer-development-for-web-startups/

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whyleyc
Interesting post, but the first flow-chart seems to perpetuate the (Silicon
Valley oriented ?) mindset that a startup should be pursuing:

    
    
      * Rapid growth
    
      * Frenzied hiring
    
      * Profitability relatively late in the game
    

What about different approaches to building and running great companies ? Why
not:

    
    
      * Focus on the product and passionate users (ala Paul Buchheit and Gmail)
    
      * Focus on exactly how you make money from that product
    
      * Hire incrementally at (or just before) the point you are profitable
    
      * Accept slower (less fashionable and exciting ?) growth
    

Maybe that would help align our thoughts around what it takes to build a
_sustainable business_ rather than just coding great features ?

It also has the added advantage of freeing you from the hand of the VCs and
looking over you shoulder fretting about your burn rate.

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plinkplonk
"Interesting post, but the first flow-chart seems to perpetuate the (Silicon
Valley oriented ?) mindset that a startup should be pursuing:

* Rapid growth, Frenzied hiring and Profitability relatively late in the game "

If anything, Steve Blank reccomends a strategy completely opposed to the
above. Read his book. The flowchart may make more sense then?

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whyleyc
I confess I haven't read Steve's book (and probably should), but in the
context of this post that flow-chart is misleading if it doesn't accurately
represent his position.

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ashmaurya
I think it feels "misleading" because there is no time scale attached to it
and maybe the word "Scalable Startup" should be changed. Building a scalable
startup is all about the things you highlight... getting to problem/solution
fit, then product/market fit... Key is getting there with low burn.

Once you have product/market fit, you have the semblance of a business. You
transition towards growth from there.

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whyleyc
Yep, maybe a timescale would help. However, I still have some beef with the
chart and the mindset it perpetuates.

I just don't like the idea of hiring "managers" before profitability is
reached. Seems crazy to me.

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ashmaurya
I agree and hadn't really noticed the "Hire managers" text till now... Then
again Steve is painting a picture for any type of business from a web startup
to biotech.

My interpretation of this process for a Web startup is getting to transition
using just the founders (plus advisors).

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jeremytech
Customer development is an often overlooked process that boils down to
understanding what is actually useful for the end user or customer, rather
than what the entrepreneur thinks is useful.

