1. 387 Million Ways For a Startup to Fail…and How to Avoid Them Steve Blank www.steveblank.com Twitter: sgblank

2. I Write a Blog www.steveblank.com

3. Startups Fail Because They Confuse Search with Execute

4. Scalable Startup Large Company >$100M/year What’s A Startup Search Execute Goal is to search for: unknown customer and unknown features

6. i.e. Product/Market fit- Repeatable sales model - Managers hired What’s A Startup? A Startup is a temporary organization used to search for a scalable and repeatable business model

7. Startups Fail Because They Execute When They Should Search

9. Repeatable sales model- Managers hired

11. Product/Market fit- Repeatable sales model - Managers hired

13. Cash Flow Statement

15. Viral coefficient

16. Customer Lifetime Value

17. Average Selling Price/Order Size

18. Monthly burn rate

20. Cash Flow Statement

22. Scalable

23. Price List/Data Sheets

25. Pricing/Feature unstable

26. Not yet repeatable

27. “One-off’s”

29. Scalable

30. Price List/Data Sheets

32. Feature Spec’s

33. Competitive Analysis

35. Feature Spec’s

37. Minimum Feature Set

38. Pivots

40. Waterfall Development

41. QA

43. Waterfall Development

44. QA

46. Continuous

47. Minimum Feature Set

49. Business Model Universe 387 Million Choices (9x9x9x9x9x9x9x9x9) choices

50. More startups fail from a lack of customers than from a failure of product development

51. Failure 1No Business Plan survives first contact with customers

52. You Need a Scientific Method to Search this Space

53. So,Structure the Searchwith a Business Model

64. Any Business Model in 9 Boxes

65. Failure 2Assume Your Business Model is Correct

66. So,Realize They’re Hypotheses

67. 9 Guesses Guess Guess Guess Guess Guess Guess Guess Guess Guess

68. Failure 3There Are No Facts Inside Your Building

69. So,Formalize TestingHypotheses Outside

70. Testing the Business Model =Customer Development

72. Market Type

73. CompetitionTurning Hypotheses to Facts

75. Customer

76. User

78. Customer

79. User

81. Market Type

83. (Customer)

86. Customer

87. User

89. Market Type

91. (Customer)

94. Customer

95. User

97. Market Type

99. (Customer)

102. Customer Development is the Search Search CustomerDiscovery CustomerValidation Pivot

103. Failure 4A Mistaken Hypothesis Creates A Crisis

104. So,Pivots are Business ModelChanges Without Crisis

106. Business Model changes without crisis

108. (Customer)

110. Market Type

112. Customer

113. User

116. So,Startups Are Built for Rapid Search

118. Minimum feature set speeds up cycle time

120. Assume your business model is correct

121. There are no facts inside your building

122. A mistaken hypothesis creates a crisis

124. Thanks www.steveblank.com