Customer Development in 54 Hours

1. Customer Development in 54 Hours All Action, Out of the Building

2. This Talk is Based On The Four Steps to the Epiphany

3. This Talk is Based On The Startup Owners Manual The Reference Manual for Entrepreneurs

6. Customer Development in 54 Hours Three Tools For Startups

7. All I Need to Do is Execute the Plan

8. No Business Plan Survives First Contact With Customers

9. What’s the Weekend Idea? Business Model Hypotheses Test Problem Test Solution • MVP • Customers • Does Anyone Care? • Do they Like It? • How will you Get/Keep/ Grow Them?

10. Startup Tool #1: Agile Development

11. Agile Development is How We Build Startups

12. Startup Tool #2: The Business Model

13. The Business Model: Any company can be described in 9 building blocks

15. sketch out your business model

16. KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS building block building block building block building block building block building block building block building block building block building block building block building block KEY RESOURCES CHANNELS COST STRUCTURE REVENUE STREAMS Business Model Canvas – Any Business 16

17. Technical Assistance (Image Atlas) FDA regulatory support SOPs for precursors and drugs Recruit clinical sites In vivo animal studies Develop regulatory plan for pre IND meeting ID cGMP CRO Fund-raising Nuclear Medicine and Radiology departments Radiopharmacies Equipment producers Prescribing physicians Radiologist who perform studies Accessibility (RCY) Purity Speed PET/SPECT Multiplatform Sensitivity (nca) Specific compounds cGMP manufacturers Radiopharmacies Technical assistance General methodology for adding fluorine to lead compounds of interest Direct sales of precursor Pharmaceutical development companies IP PoP data Drug developers Sales of packaged precursor in cassettes IP PoP data Regulatory plan Understanding of the regulatory process Radiologists Cassette manufacturers Sales of intermediates Technology license Product license (royalty) Contract cGMP precursor manufacture Salary, Rents Clinical trials

18. Customer Segments Value Proposition Technical Assistance (Image Atlas) FDA regulatory support SOPs for precursors and drugs Recruit clinical sites In vivo animal studies Develop regulatory plan for pre IND meeting ID cGMP CRO Fund-raising Nuclear Medicine and Radiology departments Radiopharmacies Equipment producers Prescribing physicians Radiologist who perform studies Accessibility (RCY) Purity Speed PET/SPECT Multiplatform Sensitivity (nca) Specific compounds cGMP manufacturers Radiopharmacies Technical assistance General methodology for adding fluorine to lead compounds of interest Direct sales of precursor Pharmaceutical development companies IP PoP data Drug developers Sales of packaged precursor in cassettes IP PoP data Regulatory plan Understanding of the regulatory process Radiologists Cassette manufacturers Sales of intermediates Technology license Product license (royalty) Contract cGMP precursor manufacture Salary, Rents Clinical trials

19. Customer Segments Value Proposition Technical Assistance (Image Atlas) FDA regulatory support SOPs for precursors and drugs Recruit clinical sites In vivo animal studies Develop regulatory plan for pre IND meeting ID cGMP CRO Fund-raising Nuclear Medicine and Radiology departments Radiopharmacies Equipment producers Prescribing physicians Radiologist who perform studies Accessibility (RCY) Purity Speed PET/SPECT Multiplatform Sensitivity (nca) Specific compounds Product/Market Fit cGMP manufacturers Radiopharmacies Technical assistance General methodology for adding fluorine to lead compounds of interest Direct sales of precursor Pharmaceutical development companies IP PoP data Drug developers Sales of packaged precursor in cassettes IP PoP data Regulatory plan Understanding of the regulatory process Radiologists Cassette manufacturers Sales of intermediates Technology license Product license (royalty) Contract cGMP precursor manufacture Salary, Rents Clinical trials

20. Get, Keepand Grow Technical Assistance (Image Atlas) FDA regulatory support SOPs for precursors and drugs Recruit clinical sites In vivo animal studies Develop regulatory plan for pre IND meeting ID cGMP CRO Fund-raising Nuclear Medicine and Radiology departments Radiopharmacies Equipment producers Prescribing physicians Radiologist who perform studies Accessibility (RCY) Purity Speed PET/SPECT Multiplatform Sensitivity (nca) Specific compounds Customer Segments cGMP manufacturers Radiopharmacies Technical assistance Channel General methodology for adding fluorine to lead compounds of interest Pharmaceutical development companies IP PoP data Direct sales of precursor Drug developers Sales of packaged precursor in cassettes IP PoP data Regulatory plan Understanding of the regulatory process Radiologists Cassette manufacturers Sales of intermediates Technology license Product license (royalty) Contract cGMP precursor manufacture Salary, Rents Clinical trials

21. Get, Keepand Grow Technical Assistance (Image Atlas) FDA regulatory support SOPs for precursors and drugs Recruit clinical sites In vivo animal studies Develop regulatory plan for pre IND meeting ID cGMP CRO Fund-raising Nuclear Medicine and Radiology departments Radiopharmacies Equipment producers Prescribing physicians Radiologist who perform studies Accessibility (RCY) Purity Speed PET/SPECT Multiplatform Sensitivity (nca) Specific compounds Customer Segments Who Are Our Customers? How Do We Reach Them? cGMP manufacturers Radiopharmacies Technical assistance Channel General methodology for adding fluorine to lead compounds of interest Pharmaceutical development companies IP PoP data Direct sales of precursor Drug developers Sales of packaged precursor in cassettes IP PoP data Regulatory plan Understanding of the regulatory process Radiologists Cassette manufacturers Sales of intermediates Technology license Product license (royalty) Contract cGMP precursor manufacture Salary, Rents Clinical trials

22. Technical Assistance (Image Atlas) FDA regulatory support SOPs for precursors and drugs Recruit clinical sites In vivo animal studies Develop regulatory plan for pre IND meeting ID cGMP CRO Fund-raising Nuclear Medicine and Radiology departments Radiopharmacies Equipment producers Prescribing physicians Radiologist who perform studies Accessibility (RCY) Purity Speed PET/SPECT Multiplatform Sensitivity (nca) Specific compounds cGMP manufacturers Radiopharmacies Technical assistance General methodology for adding fluorine to lead compounds of interest Pharmaceutical development companies IP PoP data Direct sales of precursor Drug developers Sales of packaged precursor in cassettes IP PoP data Regulatory plan Understanding of the regulatory process Radiologists Cassette manufacturers Costs Revenue Sales of intermediates Technology license Product license (royalty) Contract cGMP precursor manufacture Salary, Rents Clinical trials

23. Technical Assistance (Image Atlas) FDA regulatory support SOPs for precursors and drugs Recruit clinical sites In vivo animal studies Develop regulatory plan for pre IND meeting ID cGMP CRO Fund-raising Nuclear Medicine and Radiology departments Radiopharmacies Equipment producers Prescribing physicians Radiologist who perform studies Accessibility (RCY) Purity Speed PET/SPECT Multiplatform Sensitivity (nca) Specific compounds cGMP manufacturers Radiopharmacies Technical assistance General methodology for adding fluorine to lead compounds of interest Pharmaceutical development companies IP PoP data Direct sales of precursor Drug developers How Do We Make Money? Sales of packaged precursor in cassettes IP PoP data Regulatory plan Understanding of the regulatory process Radiologists Cassette manufacturers Costs Revenue Sales of intermediates Technology license Product license (royalty) Contract cGMP precursor manufacture Salary, Rents Clinical trials

24. 9 Guesses Guess Guess Guess Guess Guess Guess Guess Guess Guess

25. Startup Tool #3: Customer Development

26. Customer Development is How We Search for the Business Model

27. Lesson 3 Customer Development

28. Customer Development There are no facts inside your building So get the heck out

29. Customer Development is how you search for the model Search Execution CustomerDiscovery CustomerValidation Customer Creation Company Building Pivot

30. Customer Development The Search For the Business Model Search CustomerDiscovery CustomerValidation Pivot

31. Customer Development Execution CustomerDiscovery CustomerValidation Customer Creation Company Building Pivot

32. Customer Discovery Search • Articulate and Test your hypotheses • Design experiments, start listening • Continuous Discovery • Done by founders CustomerDiscovery CustomerValidation CustomerCreation Company Building Pivot Execution

33. Discovery • How big is the market? • Who’s the customer? • What’s their problem/need • What’s the product/service/need? • Does it solve the customers problem? • How do you create demand? • How do you deliver the product? • How do you make money?

34. Customer Development =process to searchBusiness Model Canvas =the ScorecardAgile Engineering is How We Build Startups • Farming conventions. • Demo, demo, and demo!! • Proximity is paramount • Technology Design • Marketing • Demo and customer feedback • Research Labs • Equipment Manufacturers • Distribution Network • Service Providers • Cost Reduction • Remove labor force pains • Eliminate bio-waste hazards • Organic Farmers • Weeding Service Providers • Conventional Farmers • IP – Patents • Video Classifier Files • Robust Technology • Dealers • Direct Service • Indirect Service • … then Dealers Value-Driven • Asset Sale • Direct Service with equipment rental • … then Asset Sale

35. Customer Validation Search CustomerDiscovery CustomerValidation Customer Creation Company Building Execution Pivot • Repeatable and scalable business model? • Passionate earlyvangelists? • Pivot back to Discovery if no customers

36. The Minimum Viable Product (MVP) • Smallest feature set that gets you the most … • - orders, learning, feedback, failure… • - incremental and iterative

37. Hypotheses Testing and Insight

38. The Pivot Search CustomerDiscovery CustomerValidation Pivot • The heart of Customer Development • Iteration without crisis • Fast, agile and opportunistic

39. Pivot Cycle Time Matters Search Execution CustomerDiscovery CustomerValidation CustomerCreation Company Building Pivot • Speed of cycle minimizes cash needs • Minimum feature set speeds up cycle time • Near instantaneous customer feedback drives feature set

40. The Startup Owners Manual • The Reference Manual for Entrepreneurs • Separate Web/Mobile versus Physical tracks

41. Web/Mobile Versus Physical CustomerDiscovery CustomerValidation Pivot • Web/Mobile startups run faster • Different process steps for web vs. physical • Customer Relationships are radically different

42. Customer Discovery Phase 1 & 2

43. Customer Relationships

44. Customer Relationships Physical Products – Get Customers

45. Customer Relationships Physical Products – Keep Customers

46. Customer Relationships Physical Products – Grow Customers

47. Customer Relationships Physical Products – Get/Keep/Grow

48. Customer Relationships Web/Mobile Products– Get Customers

49. Customer Relationships Web/Mobile Products– Get Customers

50. Customer Relationships Web/Mobile Products– Keep Customers