Self-disciplined entrepreneurship: 24 steps to teach you how to build a successful start-up

Last night, I attended an event on One-Way Street - "Teaching You to Build a Successful Startup in 24 Steps". The main content of the event was Professor Bill Aulet from MIT introducing about entrepreneurship. ’s story and one of his books – “ Disciplined Entrepreneurship: 24 Steps to a Successful Startup ”. This book has been translated into Chinese and will be available in July, but it is not widely introduced in China. The 24 steps were introduced in the flyers distributed at the event, but I didn't see them. Later I found the English version of the 24 steps on the Internet and briefly translated them:

Step 0: Getting started

There are three starting points for entrepreneurship: technology, ideas or passion. If you have passion but no specific ideas or skills, then you should consider your knowledge, skills, relationships, personal finances, and work experience.

Step 1: Market segmentation

You can segment the market through brainstorming. Your targeting should not only include the enterprise market, but also specific users, their geography, and other characteristics. You should enter a new market without thinking about selling to everyone.

This process should take at least a few weeks.

Step 2: Select a beachhead market

Select a market based on the previous criteria. In this market, you have to consider whether you can beat your competitors. Then future markets can be explored. Smaller markets usually do better, which is important because choosing this one means ignoring other markets (for now).

Step 3: Build an end user profile Establish end user information

Who is the most likely final buyer? Narrow down to a smaller scope and figure out who they are. This is ideal if entrepreneurs or employees are such users.

Step 4: Calculate the total addressable market (TAM) size for the beachhead market Calculate the potential size of the beachhead market

This market size is the market share you may win. It needs to be verified through bottom-up and top-down methods.

Step 5: Profile the persona for the beachhead market Determine the beachhead user's information

Find a specific person, describe his information, and the entire team must be involved. The purpose is to help future customers solve their problems and determine how to sell the product to them.

Step 6: Full life cycle use case

Not only should you describe how your customers use your product, but also how your customers find out what they need. your product.

Step 7: High-level product specification Product specification

Create a visual model of the product: a prototype or skeleton of the website, or a device diagram. But don’t be too specific. The main purpose here is to resolve differences and misunderstandings between teams about the product. Then create a brochure that focuses on the features and more importantly how they benefit the customer.

Step 8: Quantify the value proposition Quantify the value of your product

Create a chart to illustrate the current situation and quantify how your customers will benefit from your product. Use real data.

Step 9: Identify your next 10 customers Identify your next ten customers

Identify ten users who may buy your product in the future, and then verify the entire product life cycle.

Step 10: Define your Core Determine your core value

Explain your core value. This value is something that your competitors cannot copy well. This will become the focus of your efforts and should not be changed lightly. This value could be the user network you build, excellent customer service, low cost, or user experience. Usually this value is not your intellectual property, innovation speed, first-mover advantage, or exclusive cooperation and suppliers.

Step 11: Chart your competitive position

Make a competitive comparison chart. Place yourself and your competitors on a chart to compare.

Step 12: Determine the customer’s decision-making unit (DMU) Determine the customer’s decision-making unit

Identify all the people who influence the purchasing decision. From end users to early buyers.

Step 13: Map the process to acquire a paying customer Describe the process to acquire a paying customer

Create a step-by-step timeline, including how the customer determines whether they want your product. Determine how long the sales cycle is and any difficulties the customer may encounter.

Step 14: Calculate the TAM size for follow-on markets

After you enter the beachhead market, list five or six markets that you can enter. . This includes selling different products to the same users or selling the same product to adjacent markets. Calculate the size of this market.

Step 15: Design a business model Design a business model

Business model refers to how to obtain value from customers. You can take a look at existing business models.

Step 16: Set your pricing framework

Pricing is not based on your costs, but on the value you provide. You can consider it based on your budget and competitor prices. Remember, you can offer different prices to different users. Make sure to give initial test users and influencers a discount.

Step 17: Calculate the lifetime value (LTV) of an acquired customer Calculate the lifetime value of an acquired customer

Based on revenue sources, gross profit margin, the entire life cycle of the product, and repeat purchases rate, and cost of capital to calculate LTV.

Step 18: Map the sales process to acquire a customer Determine the process of acquiring a customer

Find a suitable sales process. There will be different sales strategies in different periods.

Step 19: Calculate the cost of customer acquisition (COCA) Calculate the cost of customer acquisition

The cost of customer acquisition is difficult to calculate and is chronically underestimated. Costs that are too high can kill a business.

Step 20: Identify key assumptions Validate your key assumptions

Validate untested assumptions through brainstorming.

Step 21: Test key assumptions Test key assumptions

Design a cheap, fast and simple test that refutes or verifies your key assumptions.

Step 22: Define the minimum viable business product (MVBP) Define a minimum viable business product

From this MVBP, customers can obtain value, make payments, and provide feedback. This is the most important hypothesis you should test.

Step 23: Show that “the dogs will eat the dog food” Prove the above commercial product

Show your MVBP to customers and make sure they will buy, participate and recommend to their friends.

Step 24: Develop a product plan

Spend some time thinking about what features you want to add to your MVBP in your beachhead market and what the next market you want to enter is ?

/

http://tech.co/disciplined-entrepreneurship-bill-aulet-2013-08

PS. One last joke, Bill ?Ole studied engineering at Harvard University, so he said that MIT thinks studying engineering at Harvard is a joke.