Some of my favorite quote are:
Role of the Entrepreneur
- Your job as an entrepreneur in a startup is to search for a repeatable and scalable business model. When you find it, your job is to build a company around that business model.
- Search for a business model rather than write a business plan. Biz model is how a company makes money.
- Customer and agile development is how you search for a business model.
- You fail if you stay a startup – goal is to become a large company. Search is bringing order out of chaos, pivoting all the time.
- Goal is not to becoming the world’s most fun startup. Goal is to become a valuable company.
- No business plan survives first contact with the customer.
Differences Between Startups and Established Companies
- Startups search and pivot; companies execute.
- Very different skills needed to execute a business model compared to those needed to search for a business model.
- Customer development = hypothesis testing, minimum feature sets and pivoting. Product management is very different than customer development.
- You need to brainwash and deprogram product managers if you want them to perform customer development.
- Key startup numbers are not: balance sheet, income statements and cashflow. They are cash, viral coefficient, customer acquisition cost, burn rate, average transaction size…
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