would be narrow. I first believed that my readers would be startup entrepreneurs.
With this audience in mind, I went out to talk to venture capital firms and their portfolio
“we’re just starting out” stage. At first, I thought the Customer Development model might be
in the midst of building a company. This group had real day-to-day operational problems to solve,
and the last thing on their minds was to read some abstruse text about what they should have done
last year. But the more I talked to these startups and spent time understanding their issues, the
more I realized that they were all under pressure to solve a common set of problems: Where is our
market? Who are our customers? How do we build the right team? How do we scale sales? These
Winners and Losers
|
vii
Not
surprisingly, there is a large body of literature on the success and failure of new products in
large companies. The more I read and then talked to large corporations, the more I became convinced
that the Customer Development model is even more applicable to existing companies attempting to
launch new products into new markets. The challenge of understanding customers and finding a
market is the same for a large company as for a startup. But large companies have established well-
defined processes and procedures that are the antithesis of the Customer Development model. In
other words, the guidelines for starting a new product in a new market are the antithesis of the well-
honed rules observed by large and successful enterprises. Indeed, those rules are a recipe for failure
when it comes to a startup-like initiative. The cost of launching new products into new markets can
exceed the absolute dollars a startup spends by several orders of magnitude. While the expected
returns are huge, making these type of mistakes in a large company can be catastrophic.
Finally, I had found my audience for this book: any team launching a new product, from a small
entrepreneurial startup to a large corporation. This book is not just for the CEO but all executives
and employees of early stage ventures; it’s for all the founders, the engineers, the VP of Sales, the VP
of Marketing, etc. – anyone who is struggling to come up with answers on how to find customers and
markets. This book will help all of you to bring rigor to the Customer Development Process.
Throughout this book, I use the terms entrepreneur and startup quite liberally. The terms
encompass the brave souls in Fortune 1000 companies just as much as they describe three teens
starting in a garage.
This or any road map will only take you where you want to go if you have the discipline to follow
it, together with the vision and passion that characterize the best entrepreneurs. As with great
artists, these are innate qualities that make successful serial entrepreneurs a rare breed. Relentless
execution is also something that is hard to get from a book. It is best learned by being thrown out of
the offices of countless prospective customers as you try to learn what appeals to them. It means
getting off the floor and going back to a customer who said “no” and finding out how to turn that into
a “yes.”
This book will point the way. Completing your own hero’s journey is up to you.
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