I am sensing marked uptake on the concept of conducting serious customer research in order to jump start high tech start-ups. It's about time. There's definitely buzz building around Steve Blank'scustomer development methodology. Ego dictates that whatever you're thinking about must be what the world is thinking about and to that, I plead guilty.
"Lean Start-up" is a phrase, I believe, coined by Eric Ries of Lessons Learned. This is a great blog and well worth you spending time with it. In a nutshell, a Lean Start-up is one that combines fast-release, iterative development methodologies (e.g., Agile) with Steve Blank's"Customer Development" concepts. The objective is to efficiently create customer-driven products quickly and with a low burn rate.
Though I believe these principles are likely to fare well for software and even hardware products, it appears that most of those implementing the Lean Start-up are Internet-based products. Without getting too deep into the specific practices, Internet products offer several advantages: Read More »
identified 100+ potential users -- primarily through personal networks;
created interview process, objectives, and questions;
MRD is now in the hands of Engineering who is preparing wireframes. Part of our completed assumptions include the features we believe are required to secure memberships, subscriptions, and advertisers.
We have chosen our temporary blogging platform. I now need to get the "visionary" comfortable blogging.
We have discussed metrics. We have a couple of phases defined, similar to phases of customer and product development. Our primary objective at this point is to get more funding. To do so, we must go as far as we can to prove the business model. It is interesting, that even at this juncture in company development, there is difference in opinion about how to define progress. Some would like to measure progress by deliverables, which is a classic project management approach. And there's nothing wrong with that.
But how do deliverables tie to our objectives? If our objective is to earn additional funding, the "deliverable" is not "a functional web site," but rather proof of the business model. So while proof requires a functional web site, what we actually need to achieve with existing funds is much greater.
As I mentioned before, non-marketing people tend to view marketing as this expensive, monolithic necessary evil, dominated by wasteful "Madison Ave" style marketing, i.e., advertisements, logos and slogans.
In a nutshell, Marketing=PR=Ads=Marcom=Branding.
This is far from the truth. Understanding the basics of marketing and whom to hire for marketing help, is critical for CEOs and technologists to understand.
The key thing to understand is that the type of marketing is highly dependent on Who you are, Who your customers are, and What stage your business is in. Here's a quick and dirty primer: Read More »
I won't name the company until the time is right, but I'll tell you a little about it:
- Company is self-funded. This is a good thing. Not only is it a bad time to seek funding, it's a great time to prove the business model prior to funding.
- Product is barely started. This is a good thing, as well. This should enable us to run customer development principles in parallel with development. The days of figuring out who your customers are after product completion (often after funding) hopefully will soon be over.
- Team of 3: vision guy, domain expert and business development (CEO); developer; marketing guy (me, FWIW).
- Business plan assumes a Freemium model, with additional revenue from highly targeted advertising, lead selling, and a la carte purchases.
Week 1 Tasks:
Document Business Hypotheses - market segment, customers, pain, acquisition methods, etc.