March 13, 2013 4 comments on "5 slides from Steve Blank’s course on building a startup worth your time"
This graph refers to “New Market Startups”. There are actually 4 types of startups with different revenue forecasts. But as I am building a New Market startup this is the graph that I was most intrigued by.
Young startups price on what it costs them to provide the product.
If you understand the value you are providing, you can get a much better idea of what to actually charge your customers. Customers you talk to may tell you they won’t pay based on value, but they will. If the product however isn’t worth as much to your customer as it is costing you to build it, then that is a good place to stop and reevaluate what you are building (before it’s too late).
– This is for companies that are not Freemium. You need to know when you expect to hit these marks. Going in blind can be either disillusioning, or you might not have a plan when you do hit these marks and will be reacting rather than strategizing.
– “Important to know when you will hit these marks because it is very rewarding when you do” – S.B.
– All very logical, but without validating the product market fit you can’t know if customers will actually use the product you are creating.
4 Comments on "5 slides from Steve Blank’s course on building a startup worth your time"
lots of talking. Let’s see it in action. Eric’s startups have been all flops. Easy telling people to start companies than start one successful company oneself.
Hi there, that would be a fair point, but Steve Blank has started more than 8 companies. Eric was a student of Steve’s and they’ve worked closely together to create the lean startup model. I do agree that it’s not perfect, but when starting a company not much is.
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