Chapter 5: Leap

Chapter 5: Leap

1. Leap-of-faith assumptions: The riskiest elements of a startup plan are the leap-of-faith assumptions. The two most important assumptions are the value hypothesis and the growth hypothesis. These give rise to tuning variables that control a startups engine of growth.

2. Example leap of faith: will break or make your business. In the iPod business, one of those leaps of faith was that people would pay for music.

3. Customer archetype: Early contact with the customer clarifies a basic coarse level that we can use to craft a customer archetype.

4. Startup strategy: For startups, the role of strategy is to help figure out the right questions to ask.

5. Genchi Gembutsu: “Go and see for yourself”. Means that business should be based on deep firsthand knowledge. Until you have seen something for yourself firsthand you cannot be sure you really understand any part of the business problem.