Steve blank sxsw new rules for the new bubble 031211

1. New Rules for the New Bubble Steve Blank Stanford - School of Engineering U.C. Berkeley - Haas School Of Business www.steveblank.com Twitter: sgblank

2. I Write a Blog www.steveblank.com

3. I Drew This CustomerDiscovery Company Building CustomerValidation Customer Creation Pivot

4. I Called It:Customer Development CustomerDiscovery Company Building CustomerValidation Customer Creation Pivot

5. I Wrote This

6. A Few People Read It

7. This Talk is Based On Business Model Generation Four Steps to the Epiphany Lean Startup

8. Premise Beginning of another tech bubble Rules are different in a bubble What are they? How do they differ from what you did before?

9. A Few Short Stories

10. How Did We Get Here?

11. Paths to Startup Liquidity 1970 – 1995 build a business (revenue) 1995 – 2000 flip the business (concept IPO) 2001 – 2010 build a business (M&A) 2011 – 2014 flip a built business (M&A / IPO)

12. 1970 – 1995Building a BusinessStartups Are Small Versions of A Large Company

13. 1970 - 1995 Building a Startup the Hard Way $Millions’sto start (Proprietary hdwr/sftwr) Long product dev cycle (Waterfall) Thousands customers (Businesses) Liquidity = IPO (5qtrsrevenue/profit) No repeatable methodology(Smallerbig company)

14. 1970 - 1995Making Money the Hard Way Goal was long term company success VC’s/Founders were company builders Exits were IPO’s Founders and VC success ≤ $10 million

15. 1970 – 1995 Playbook

16. Product Introduction Model Concept/Seed Round Product Dev. Alpha/Beta Test Launch/ 1st Ship

17. Product Introduction Model The Leading Cause of Startup Death Concept/Seed Round Product Dev. Alpha/Beta Test Launch/ 1st Ship

18. Product Introduction Model:Two Implicit Assumptions Customer Problem: known Concept/Seed Round Product Dev. Alpha/Beta Test Launch/ 1st Ship Product Features: known

21. Hire Sales VP

22. Hire 1st Sales StaffSales

24. Hire Sales VP

27. Hire Sales VP

30. Waterfall

31. Q/A

33. 1995 – 2000Flipping A BusinessThe Dot.comBubble

34. 1995 - 2000The Dot-com Bubble 10’s $millions to start (get big fast, create a brand) Long product dev cycle (ship beta, 1st mover adv) Millions customers (1st consumer internet wave) Liquidity - IPO (Little/no revenue, no profits) Repeatable methodology(brand, hype, flip or IPO)

35. 1995 - 2000The Dot-com Bubble – Making Money Goal = short term exit VC’sengineering financial transactions Founders hyped their company “Musical Chairs” – last one standing looked dumb Everyone else got absurdly rich

36. 1995 – 2000 Playbook Netscape

37. 2001 – 2010Why Startups Are Not Small Versions of A Large Company

38. 2001 - 2010The Lean Startup ≤ $½ million to start (open source, commodity hdwr) Short product dev cycle (Agile Development) 100’s millions Customers (Social networks, consumer) Liquidity -M&A(revenue & network of users) Repeatable methodology(Agile + Cust Dev)

40. i.e. Product/Market fit- Repeatable sales model - Managers hired What’s A Startup? Search Execute A Startup is a temporary organization used to search for a repeatable and scalable business model

42. Professional Mgmt

43. Process

46. Product/Market fit- Repeatable sales model - Managers hired

48. Cash Flow Statement

50. Viral coefficient

51. Customer Lifetime Value

52. Average Selling Price/Order Size

53. Monthly burn rate

55. Cash Flow Statement

57. Scalable

58. Price List/Data Sheets

60. Pricing/Feature unstable

61. Not yet repeatable

63. Scalable

64. Price List/Data Sheets

66. Waterfall Development

67. QA

69. Waterfall Development

70. QA

72. Continuous Learning

73. Self Organizing Teams

74. Minimum Feature Set

76. features

77. customers/markets

79. describes “unknowns”

80. customer needs

81. feature set

82. business model

83. found by iteration

84. Plan describes “knowns”

85. Known features for line extensions

86. Known customers/markets

88. 2001 - 2010 Playbook Four Steps to the Epiphany Many Agile Texts

89. But We Were Still Using This

90. No Business Plan survives first contact with customers

91. So Search for a Business Model

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

93. CUSTOMER SEGMENTS which customers and users are you serving? which jobs do they really want to get done?

94. VALUE PROPOSITIONS what are you offering them? what is that getting done for them? do they care?

95. CHANNELS how does each customer segment want to be reached? through which interaction points?

96. CUSTOMER RELATIONSHIPS what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?

97. REVENUE STREAMS what are customers really willing to pay for? how? are you generating transactional or recurring revenues?

98. KEY RESOURCES which resources underpin your business model? which assets are essential?

99. KEY ACTIVITIES which activities do you need to perform well in your business model? what is crucial? 54

100. KEY PARTNERS which partners and suppliers leverage your model? who do you need to rely on?

101. COST STRUCTURE what is the resulting cost structure? which key elements drive your costs?

102. value proposition customer relationships key activities customer segments key partners cost structure revenue streams key resources channels 57 images by JAM

104. The Implementation is Agile Development

106. Customer Development The founders ^ Get Out of the Building

107. Customer DevelopmentThe Search For the Business Model Company Building CustomerDiscovery CustomerValidation Customer Creation Pivot

108. Customer Discovery CustomerDiscovery CustomerValidation Company Building CustomerCreation Stop selling, start listening Test your hypotheses Continuous Discovery Done by founders

110. Market Type

111. CompetitionTurning Hypotheses to Facts

113. Customer

114. User

116. Customer

117. User

119. Market Type

121. (Customer)

124. Customer

125. User

127. Market Type

129. (Customer)

132. Customer

133. User

135. Market Type

137. (Customer)

140. MVP + Customer are the first two you need to nail

142. Iteration without crisis

144. Pivot ExampleOn-line Social Buying Platform Talked to 250 Customers in 8 weeks

145. OURCRAVE is an online social shopping platform where customers can make their own deals on products or services of their choosing with sellers who can offer them in bulk at a discounted price.

148. 22% paid 5~10% transaction fee

149. 78% agreed it was too much

151. User Side : Online User Survey Power to choose products Discount on products Buyer community feedback

154. Key Question for Business Canvas #2 HOW CAN WE ATTRACT BUYERS? CUSTOMER ACQUISION COST?

155. Buyer Demand Test Best Marketing Channel for having buyers is Facebook Wall : 144 Unique Visits, 10 e-mail subscriptions for 3 days Facebook Wall Google Adwords Facebook Ads 5% 0.08% 0.005% (CTR) $7.52 $4.88 $0 (COST)

158. Online social networks

160. Key Question for Business Canvass #3 HOW CAN WE ATTRACT SELLERS? COOPERATION WITH SELLERS?

162. 3 products: HD camera, protein drink, videogame

164. Discounts offered < 10%

165. With shipping and tax still >= Amazon price

167. Seller problem intractable?

169. Only contacted larger sellers

170. Sellers need more value

171. Show them a real websiteFilter advice and stay determined! No Pivot Yet

173. Buyer facebook login

174. Online social networking integration

175. Seller login and registration

176. Seller bidding

178. Solution 1 : Rapid Implementation The Real Deal

179. Solution 1 : Rapid Implementation Main page Facebook connect Deal creation by sellers Bidding dialog

181. Customer contact information

182. Cross-selling products

183. Ad banners

185. Stanford takes notice and issues warning (oops)

186. Enumerate value propositions

187. Show live website

189. Seller Invitation Result # of sellers who replied to our email 200 sellers # of sellers who made suggestions on OURCRAVE 50 sellers

194. Key Question for Business Canvass #4 Key Activities for Next Stage Can we make enough money?

196. Bulk List Uploading Function

198. Share buyer information

203. Extra Discount

204. Free shipping or tax Coupon

205. Live comment on cravebags

206. Weekly Best cravebag vote

207. Youtube Ads Competition* OurCrave User Survey in 2/3 weeks

208. Revenue / Cost Source Revenue Cost Product Ads Transaction Fee ( Main ) Float Money Site Maintenance Marketing ( Main ) Customer Support Server/Traffic /Mobie Apps 15% of transaction Ads for buyer Seller Management 3~5% ( paypal) Outsourcing 20%/60days* * google/groupon’s rule, we are asking sellers about this rule.

213. Business Canvas – Week 1 Seller : - More customer traffic - Bulk sales- Lower transaction feesBuyer : - Better discounts - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand - Powerful sellers - Server providers - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback Multi-sided platformSeller :pro-sellers on Amazon and eBayBuyer :Online shoppers - Web & App sales - Online social networks - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries Seller side:- transaction fees Buyer side:- targeted ads

214. Business Canvas – Week 2 Seller : - More customer traffic - Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts - Power to choose product deal - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand - Powerful sellers - Server providers - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback Multi-sided platformSeller :pro-sellers on Amazon and eBayBuyer :Online shoppers - Web & App sales - Online social networks - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries Seller side:- transaction fees Buyer side:- targeted ads

215. Business Canvas – Week 3 Seller : - More customer traffic - Bulk sales- Lower transaction fees- Brand name marketingBuyer : - Better discounts - Power to choose product deal - Buyer community feedback on products and sellers - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand - Powerful sellers -Regionalsellers - Server providers - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback Multi-sided platformSeller : Sellers on Amazon and eBayBuyer :Online shoppers who are willing to waitto get significant discounts on products - Web & App sales - Online social networks - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries Seller side:- transaction fees Buyer side:- targeted ads

217. Business Canvas – Week 5 - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand Seller : - More customer traffic - Bulk sales- Lower transaction fees- Brand name marketing - Access to customer contact information - Ability to cross-sell products - Site advertising Buyer : - Better discounts - Power to choose product deal - Buyer community feedback on products and sellers - Sellers who need more traffic -Regionalsellers - Server providers - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback Multi-sided platformSeller : Sellers on Amazon and eBayBuyer :Online shoppers who arewilling to waitto get significant discounts on products - Web & App sales - Online social networks - Onlineadvertising - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries - Online ads Seller side:- transaction fees Buyer side:- targeted ads

218. Business Canvas – Week 6 Seller : - More customer traffic - Bulk sales- Lower transaction fees- Access to customer contact information - Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- promotion of website and brand - Sellers who need more traffic -Regionalsellers - Server providers - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback Multi-sided platformSeller : Sellers on Amazon and eBayBuyer :Online shoppers who arewilling to waitto get significant discounts on products - Web & App sales - Online social networks - Onlineadvertising - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries - Online ads Seller side:- transaction fees Buyer side:- targeted ads - float money

219. Business Canvas – Week 7 Seller : - More customer traffic - Bulk sales- Lower transaction fees- Access to customer contact information - Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers - Platform/Networkmanagement (maintaining online buyer/seller communities and credibility)- Promotion of website and brand - Sellers who need more traffic - Regionalsellers - Server providers Established services- Online Marketing : Google/Facebook -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback Multi-sided platformSeller :Sellers on Amazon and eBay Seller: Trustworthy sellers with verifiable websites.Buyer :Online shoppers who arewilling to waitto get significant discounts on products - Web & App sales - Online social networks - Onlineadvertising - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries - Online ads Seller side:- transaction fees Buyer side:- targeted ads - float money

220. Business Canvas – Week 8 Seller : - More customer traffic - Bulk sales- Lower transaction fees- Access to customer contact information - Cross-sell their products.- Site advertising- Power to create dealsBuyer : - Better discounts- Power to choose product deal- Buyer community feedback on products and sellers - Platform/Networkmanagement (maintaining and growing online buyer/seller communities and credibility)- Promotion of website and brand - Establishing credibility - Sellers who need more traffic Established services- Online Marketing : Google/Facebook -Payment Gateway : Paypal- Customer Service (Front side webservice) : Self- Customer Service (Product side) : Sellers- Delivery : Sellers - Automated services- Communities of buyers and sellers- Co-creation of value through customer feedback Multi-sided platform Seller: Trustworthy sellers with verifiable websites.Buyer :Online shoppers who are willing to wait to get significant discounts on products - Web & App sales - Online social networks - Onlineadvertising - Physical resources (IT infrastructure)- Existing social networks - Buyer and seller communities,- Brand awareness - Variable costs: server and traffic maintenance costs- Fixed costs: rent, salaries - Online ads Seller side:- transaction fees Buyer side:- targeted ads - float money

221. Pivot ExampleRobotic Weeding Talked 75 Customers in 8 Weeks

222. Our initial plan Confidential

224. White Farms, Large Peanut farmer in Georgia

225. REFCO Farms, large grower in Salinas Valley

226. Rincon Farms, large grower in Salinas Valley

227. Small Organic Corn/Soy grower in Nebraska

228. Heirloom Organics, small owner/operator, Santa Cruz Mts

229. Two small organic farmers at farmers market

231. Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)

232. Toro dealer (large mower manufacturer)

233. User of back-yard mowing system

234. Maintenance Services for City of Los Altos

235. Colony Landscaping (Mowing service for stadiums)Confidential

236. Business Plan Autonomous Vehicles for Mowing & Weeding Dealers sell, installs and supports customer Co. trains dealers, supports dealers - Innovation - Customer Education - Dealer training Mowing - Owners of public or commercially used green spaces (e.g. golf courses) - Landscaping service provider Weeding - Farmers with manual weeding operations We reduce operating cost - Labor reduction - Better utilization of assets (eg mow or weed at nights) - Improved performance (less rework, food safety) - Dealers (Mowing and Ag) - Vehicle OEMs (John Deere, Toro, Jacobsen, etc) - Research labs - Mowing Dealers - Ag Dealers Engineers on Autonomous vehicles, GPS, path-planning Dealer discount COGS seek a 50-60% Gross Margin Heavy R&D investment Asset sale Our revenue stream derives from selling the equipment

237. Autonomous vehiclesWEEDING Dealers sell, installs and supports customer Co. trains dealers, supports dealers - Innovation - Customer Education - Dealer training - Low density vegetable growers - High density vegetable growers - Thinning operations - Conventional vegetables We reduce operating cost - Labor reduction (100 to 1) - Reduced risk of contamination - Mitigate labor availability concerns - Ag Dealers - Ag Service providers - Research labs - Ag Dealers - Ag Service providers Engineers on Machine Vision Two problems: - Identification - Elimination Dealer discount COGS seek a 50-60% Gross Margin Heavy R&D investment Asset sale Our revenue stream derives from selling the equipment

238. 1 Week – 1 CarrotBot Confidential

240. Marketing

241. Demo and customer feedback

242. Farming conventions.

243. Demo, demo, and demo!!

244. Proximity is paramount

245. Organic Farmers

246. Weeding Service Providers

247. Conventional Farmers

248. Cost Reduction

249. Remove labor force pains

250. Eliminate bio-waste hazards

251. Research Labs

252. Equipment Manufacturers

253. Distribution Network

254. Service Providers

255. IP – Patents

256. Video Classifier Files

257. Robust Technology

258. Dealers

259. Direct Service

260. Indirect Service

261. … then Dealers

262. Asset Sale

263. Direct Service with equipment rental

264. … then Asset SaleValue-Driven

266. Marketing

271. Mid/Large Organic Farmers

272. Agricultural corporations

274. Mid/Large Conventional Farmers

275. Cost Reduction

278. Research Labs

279. Equipment Manufacturers

282. IP – Patents

285. Direct Service

289. ($1,500/d; 120d/yr )

290. Low density: $1,500/d

291. High density: $6,000/dValue-Driven

292. World Ag Expo interviews:the need is real and wide spread 10+ interviews at show Everyone confirmed the need Robocrop, UK based, crude competitor sells for $171 K Revenue Stream Mid to small growers prefer a service Large growers prefer to buy, but OK with service until technology is proven Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability) Confidential

294. Marketing

299. Mid/Large Organic Farmers

300. Agricultural corporations

302. Mid/Large Conventional Farmers

303. Research Labs

304. Equipment Manufacturer

307. 2 or 3 Key Farms

308. Cost Reduction

311. IP – Patents

314. Direct Service

318. Low density: $1,500/d

320. Bill of Materials

321. Training & Service

323. 2011 – 2014Rules for the New Bubble

324. New Bubble Hypotheses We’re in one Rules are different in 2011 then 2006 Exits will be IPO and M&A Unlike last bubble initial IPO’s will be “real” Quality of IPO pipeline will diminish rapidly Acquirers can be “targeted” You can “engineer for an acquisition”

325. 2011 – 2014The New Bubble Short product dev cycle (Agile Development) Customers 10’s/100’s millions(Social networks, consumer) Liquidity through M&A & IPO(revenue & network of users) Repeatable methodology (Agile + Cust Dev + Bus Model) Target acquirers (Adoption, Visibility, order of battle)

326. 2011 - 2014Rules for the New Bubble Founders/VC’s can engineer financial transactions Transactions economically or usage accretive Still require Agile, Cust Dev & Bus Model Add: Adoption, Order of Battle and Visibility

327. 2011 - 2014 Playbook Business Model Generation Four Steps to the Epiphany Lean Startup Liquidity Strategy

329. Rapid Bus Model iteration

331. 2011 – 2014Adoption Get wide adoption (freemium, low costs, etc) Go for massive distribution Monetize later Can only be done Lean, requires Pivots

332. 2011 – 2014Visibility Be everywhere Look larger than life Conference, blogs, social networks PR is your best friend, invest in it

333. Closing Thoughts We’re at the beginning of another tech bubble Rules for making money are different in a bubble Founders & VC’s can engineer financial transactions Transactions need to be economically or usage accretive Still require Agile, Cust Dev & Bus Model Add: Adoption, Order of Battle and Visibility

334. Thanks www.steveblank.com

335. BACKUP

336. Pivot ExamplePersonal Libraries Talked to 75 Customers in 8 weeks

337. Version 1.0: Personal Libraries

338. something-something-something.com Original idea Invincible Business Model: Version 1.0 SHORT TERMResearchers Lawyers Scientists LONG TERMAvid book readers Professionals FB/TW posts from users you know Company blog, FB, TW, support forums Import, organize and share thousands of papers Targeted marketing Product development Constant iteration & testing Libraries, Universities, Research Centers Bloggers and media targeting customer segment Academic Database providers Affiliate program SEO/SEM/SM IE/FF/Chrome App Stores Developers Marketers Affiliate program fees Licensing Subscription fees Ad revenue AWS Infrastructure SEM Eng & Marketing OpEx

340. Extensive Surveys

341. 33,000+ Adwords

342. Compete Review

343. Market Sizing

344. 50 bloggers

345. 6 Social Networks

346. Usability Tests

348. something-something-something.com Original idea Invincible Business Model: Version 2.0 Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel) FB/TW posts from users you know Company blog, FB, TW accounts Discover online goods recommended by friends at the lowest possible price from trusted vendors Developing trusted advice and advisors Web marketing Affiliate partnerships Constant iteration & testing Bloggers and Media targeting customer segment Retail marketing partners IE/FF/Chrome teams Affiliate Program Providers Affiliate program SEO/SEM/SM IE/FF/Chrome App Stores Developers Marketers Content Library Install base Readership base Affiliate program fees Licensing Subscription fees Ad revenue AWS Infrastructure SEM Eng & Marketing OpEx

349. New Hypotheses

350. Here’s What We Did Version 2.0: Trusted Advice

352. Extensive Surveys

353. Landing Page Tests

354. Market Research

355. Compete Research

356. Revenue Analysis

357. Two Prototypes

359. something-something-something.com Original idea Invincible Business Model: Version 2.0 Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel) FB/TW posts from users you know Company blog, FB, TW accounts Discover online goods recommended by friends at the lowest possible price from trusted vendors Developing trusted advice and advisors Web marketing Affiliate partnerships Constant iteration & testing Bloggers and Media targeting customer segment Retail marketing partners IE/FF/Chrome teams Affiliate Program Providers Affiliate program SEO/SEM/SM IE/FF/Chrome App Stores Developers Marketers Content Library Install base Readership base Affiliate program fees Licensing Subscription fees Ad revenue AWS Infrastructure SEM Eng & Marketing OpEx

362. Pivot ExampleCloud Services Talked to 50 Customers in 8 weeks

363. Week 1

364. Cloud compute marketplace Build a cloud marketplace Many different customer segments on buy-side and sell-side Direct sales to both buyers and sellers Huge dependency on technical platform

365. Week 2

366. Cloud Services Match Maker Pivot away from technical platform Help buyers find the best provider Removed financial, consumer segments Act as channel for sellers

367. Week 3

368. Automated Cloud Capacity Planning Pivot 1: Capacity Planning Pivot 2: Focus on enterprises with variable workload

369. Week 4

370. Week 5

371. Week 6

372. Week 7

374. Develop and maintain cloud infrastructure vendors relationships

376. Subscription charge to buyers

378. Develop IaaS vendor relationships

380. Subscription charge to buyers

382. Initial Product Idea Mobile application providing crowd-sourced real time traffic map in developing countries Lahore Shanghai Jakarta Bangkok

383. Business Canvas Change Progress 1

386. Customer Segment: Corporate The Drivers: Are you questioning our expertise? Archetypes Users International, local, large, and small companies Influencers and Recommenders Economic Buyers, Decision Makers Saboteurs

387. Pass/Fail FAIL

392. Business Canvas Change Progress FINAL

393. Pivot ExampleResidential Wind Turbines Talked to 100 Customers in 8 weeks

395. Get certifications

396. Get approvals from city councils

397. Cheap wind

398. Green status symbol

399. Diversify energy portfolio

400. Faster payback than alternatives

401. Single family homeowner

402. House rental groups

403. Contractors in home remodeling

404. 5 yr full service Warranty

405. Want re-buy from customers

406. Environmental, bird, wildlife groups (regulations, publicity)

407. City councils (new regulations, permits).

408. Contractors

411. Faster payback than alternatives

412. Wind

413. Cheap manufacturing process- Intellectual property

414. Need Initial capital

415. Endorsements by environmental groups, and local governments

416. Direct sales

417. Web site

418. Home Depot

419. Direct sales

420. Cost-driven model to provide inexpensive, quality product

423. Build relationship with city engineers and council members

424. Understand customer, influencers, motivations, problems, competitors

425. Form partnerships for maximum reach

426. Submit bids for city RFPs

427. Continue R&D

429. Gain Credibility

430. Retrofit wind turbine for street and highway lamps.

431. Create own wind turbines with pole manufacturers

432. Be owner of cheap green status symbol

433. Diversify green energy portfolio

434. Fast payback than alternatives

435. Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY

436. Cities

437. Lighting Companies

438. 5 year full service Warranty

439. After 5 years, service charge

440. Utility to manage after warranty expiration

441. Extended warranty option

443. City councils not HOA(new regulations, permits).

444. Lighting Manufacturers

445. Electricians and Contractors for Installation/Maintenance

446. Research Labs

447. Turbine Certifiers

450. City councils not HOA

451. Cities

453. $1.5 MM of capital to start manufacturing and distribution for year 1 and 2

454. Manufacturing Parts

456. Direct sales to cities

457. Web site

458. Home Depot

459. Direct Sales

460. Service Calls

461. Leasing

463. Manufacturing costs and customer acquisition costs.

465. Community Culture

466. State Mandates

467. City Budget PlanLearn about city approval Process City Values Planning Commission Technical Evaluation and Recommendation Back to the envelop metrics IDEA Request for Quote City Council Approval City Council “Pet-Project” Finance Approval

471. Form partnerships (developers, cities, installers, maintenance) for maximum reach

473. Continue R&D

481. Cities (pilot)

482. Cities leasing

484. Developer -> Utilities -> City

485. 5 year full service Warranty,

489. City council (new regulations, permits).

493. Research Labs

495. Small Wind Developers

496. Utilities

498. R&D talent

500. Finance

501. Direct sales to cities (long term) PILOTS

502. Small Wind Developer

503. Cities leasing

505. Finance

508. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained (must be in future)

509. Leasing, PPA

510. Direct Sales to wind developers?

511. Leasing, PPA

515. Cheap affordable wind turbine for the everyday American

517. Diversify energy portfolio,

518. Fast payback than alternatives, < 5 yrs

521. Contractors in home remodelling

523. Want re-buy from customers

526. Contractors

528. Need initial capital

530. Direct sales

531. Web site

532. Home Depot

535. Continue R&D

542. Single family homeowner in CA, TX ,CO, WI, NY

546. Want rebuy from customers

548. City councils and neighborhood/??? (new regulations, permits).

549. Contractors

551. Need Iniitial capital

553. Direct sales

554. Web site

555. Home Depot

557. May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.

558. Direct Sales

559. Leasing

561. Continue R&D

573. Additional Maintenance after

577. Contractors

579. Need Iniitial capital (600k)

580. Manufacturing Facilities and Areas

582. Direct sales

583. Web site

584. Home Depot

587. Direct Sales

588. Leasing

590. Continue R&D

595. Cheap product more readily available

603. Additional Maintenance after

607. Contractors

609. Need Iniitial capital (600k)

612. Direct sales

613. Web site

614. Home Depot

618. Direct Sales

619. Leasing

625. Continue R&D

628. Cheap product more readily

635. Cities

637. Utilities

650. Direct sales to cities (long term)

651. Web site

652. Home Depot

656. Direct Sales

657. Service Calls

663. Use competitive, local, renewable energy, strong green symbol

665. Fast payback than alternatives.

666. Cities

668. Utilities

669. County – State Level

670. 5 year maintenance and warranty

676. Light manufacturers, installers to package product/services

677. Electricians, contractors, light maintenance for additional workforce

680. Endorsements by environmental groups, city consortiums for renewable energy, public utilities, city council planning department

681. Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.

685. Asset sales and service calls

691. Use competitive, local, renewable energy, strong green symbol

693. Fast payback than alternatives.

694. Cities

695. Utilities

696. County – State Level

697. 5 year maintenance and warranty

701. Environmental, bird, wildlife groups

703. Light manufacturers,

704. Installers/maintainers

705. Research Labs

709. Endorsements by environmental groups, city consortiums for renewable energy, public utilities, city council planning department

710. Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.

714. Asset sales and service calls

718. Form partnerships (developers, cities, installers, maintenance) for maximum reach

720. Continue R&D

728. Cities (pilot)

729. Cities leasing

732. 5 year full service Warranty,

736. City council (new regulations, permits).

740. Research Labs

742. Small Wind Developers

743. Utilities

745. R&D talent

747. Finance

748. Direct sales to cities (long term) PILOTS

749. Small Wind Developer

753. Leasing, PPA

755. Leasing, PPA

Steve blank sxsw new rules for the new bubble 031211

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