LARGE COMPANY AND STARTUPS

LARGE COMPANY AND STARTUPS

1. The core difference is that startups do something called search while large companies spend their time executing.

   • LARGE COMPANY
     • Waterfall
       • development is just a step by step process that says marketing rights are requirements of what the product should do.
   • STARTUPS
     • BETTER START FOR;
       • This search for the truth is called customer development, and customer development really has two pieces, the search and its execution. (two steps; customer discovery, customer validation, the pivots that connect them)
         • Costumer Development
     • Why do startups fail?
       • ● Co-founders do fight. Somewhere between a quarter and third of startups never even get to the beginning of the company because the founders just couldn't agree. ● Sometimes your vision is just too far in advance to actually be built. ● It could be such an interesting vision or such a bad vision, but it can't attract sufficient capital to get started and it may be too expensive to fund on your own through your own resources. ● We never actually found product market fit and there are too few people who will buy or use the product.
         • Differences
           • The last interesting thing that's a holdover from thinking about startups as smaller versions of large companies is kind of the hardest to get your height around. ● Large companies got VP of sales. Why I need a VP of sales on day one? ● Large companies have had some marketing. I need to have a market first. ● Large companies have business development and all those external organizations. Do we need those too?
   • BUSSINES MODEL
     • A business model is how a company creates value for itself while delivering products or services for its customers.
       • BUSSINES MODEL CANVAS
         • o organize our thoughts about all the hypotheses about every part of our business. Secondly, we're going to get out of the building and actually turn those hypotheses into fact, as we'll find out in the following sections of the module. After we turn those hypotheses into facts, we'll be updating the canvas on a regular basis and it will become a scorecard
           • POINTS:
             • VALUE PROPOSITION Customers really don't care about your technology. The customers are trying to solve a problem or fulfill a need.
             • CUSTOMER SEGMENT you might have more than one or two or three types of customers. So, you’ll need to understand them in detail.
             • CHANNELS the only channels to get to a customer was on a physical channel.
             • CUSTOMER RELATIONSHIP It basically says how do I get customers, how do I keep them, and how do I grow them.
             • Revenue Streams Revenue streams basically ask the question what value is the customer paying for and for how long I'm going to capture that value from them.
             • Key Resources What assets do you need to make the business model work? What assets are important? Finance is an example of a key resource.
             • Key partners We need to ask ourselves before building the partnership building block, what exactly are we acquiring from partners, and also what activities are they going to perform and when. There are different types of partnerships: strategic alliances, joint ventures, just regular suppliers and buyers.
             • Key activities Key activities try to answer what's the most important things you need to do for the business to make the business model work.
             • Cost structure It is about the entire cost to operate a business model.