Why are Customer Development and Lean Startup Principles So Popular?

Customer Development is hot. Lean Startups too.

Customer Development is gaining momentum thanks to Steve Blank’s book – The Four Steps to the Epiphany and the uptake of its principles by many startups. The Lean Startup model has emerged as a favorite amongst startups thanks to the work of Eric Ries.

Why have both of these concepts – Customer Development and Lean Startups – gained such huge popularity?

It’s because the instant you start reading Steve Blank’s book (and killer blog) and Eric Ries’ blog (or presentations, etc.) you repeatedly say to yourself, “Holy Shit! I’ve made all those mistakes!”

These guys are basically saying, “Have you done this? Ouch. We know it hurts. We’ve done it too.”

“Oh, you did that too? Ya, been there, done that. Sucked big time. Wasted a lot of time and money. Ya, we’ve failed.”

When you read their content, you can’t help but think, “They’re talking about me!”

  • Didn’t validate enough with customers early on?check!
  • Hired someone to lead sales and/or marketing before we knew exactly what we were selling & who we were selling to?check!
  • Had unpleasant board meetings where numbers presented didn’t meet expectations?check!
  • And so on and so forth?check!

That makes for a compelling sales pitch. “Has this happened to you? It has? Well let me tell you how to fix it…”

The Customer Development and Lean Startup models are frameworks, like Ruby on Rails or religion. No framework is perfect. It can’t be, nor does it have to be. Frameworks are guides for doing things a certain way that may prove useful and successful for you. Religion certainly has its fanatics, but there’s a much larger population of people who pluck out what they want (and need) from it, ignoring the rest. In my mind that’s OK because the framework is still providing worthwhile guidance. Please note: I don’t want to get into a religious or philosophical debate on religion – I realize how people can misuse and abuse religion for their own benefit in horrible ways. But I’m thinking more along the lines of plucking out, “Thou shalt not kill” vs. “You can’t eat pork” (bacon ftw!).

Most entrepreneurs have gone through many painful experiences building their startups — experiences described by Steve, Eric and others (Dave McClure, Cindy Alvarez, and more — last link is a Google Group worth following) — such that we feel a kindred connection, and are looking for better ways of doing things.

If you were already getting close to customers, validating carefully, not overspending on sales & marketing prematurely, etc. before Customer Development and Lean Startup models got super popular then that’s great! Kudos to you! No one is saying these concepts are unique or brand new. But they’re hitting a nerve with a lot of startups now, and that’s good. These models (and the discussions surrounding them) are important in helping a lot of startup entrepreneurs learn from their past mistakes, collectively with others. But they’re not perfect. They’re guides on the path to potential startup success, not guarantees. But they sure can help…


What are the Social Media Roadblocks for Companies?

FlasherSeth Godin hits the nail on the head in reference to using the Web and social media for your business:

The problem is no longer budget. The problem is no longer access to tools.

The problem is the will to get good at it.

There also remains a very pervasive fear within companies (especially at the C-level) to opening up. I recently said to someone, “It’s time to expose yourself under that kimono.” We’ll see if I get that project or not… *smile*

Unfortunately, too many mid-level and junior-level employees are forced to spend a disproportionate amount of their time figuring out how to justify things to their bosses and how to create corporate policies that will calm executives’ nerves. If your company needs to spend a year developing appropriate, legally-binding, bullet-proof, fully documented corporate social media policies before someone at your organization can get on Twitter and say, “hi!” … you’re f-cked.

image courtesy of shutterstock

P.S. That’s not me in the picture…


Firing People Quickly is the Best Way

Firing people is extremely difficult, especially if you’ve never done it before. But it’s made infinitely harder and causes significantly more damage if you delay it. When you know someone isn’t working out (for whatever reason), you need to let them go. For startups it’s a very difficult pill to swallow. Each person on a small team is insanely important and has to pull a huge amount of weight. If one person isn’t pulling their weight it can drag the entire team, project and business down the toilet.

So the best thing you can do is act quickly.

Firing people is emotional and stressful. You worry about how they’ll respond and what they’ll do next. You worry about whether they’ll come back to poison the team against you. And you worry about what the remaining team will think. How will firing someone impact their confidence in your startup and you? Will other people jump ship because they think the startup is failing, or because they think we treated the ex-employee unfairly?

Most of the time these worries are unfounded. If you wait too long and let a bad situation drag out, it can have a ripple effect after you let the person go, but if you do it quickly and decisively, everyone moves on fairly well. In fact, your team will probably appreciate the move (even if it’s not expressed publicly) because it tightens up and solidifies the core team. The person that was let go may be shocked or disappointed (and will likely be upset in the moment), but shortly thereafter I’ve seen many people who realize that the job and/or company wasn’t the right fit. Oftentimes people will move on to bigger and better things, and be extremely successful in other environments, situations and roles. And even if the worries do have some merit, you can’t keep “bad fits” in the company just to avoid other problems. That never works.

Fire quickly.

This is true of employees and co-founders. With co-founders the situation is even more complicated, but the rule still applies. If it’s not working you have to take action.

I know it’s tough. Firing people is unpleasant and awkward. And it can get heated – there are lots of emotions involved. But if you know it’s the right move, do it. And generally speaking if you’re trying to decide whether it’s the right thing to do but you’re on the fence — it’s the right thing to do. The fact that you’re on the fence means you have to take action. Don’t delay. Every single day that you delay is hurting your business.


Ben Yoskovitz
I'm VP Product at GoInstant.

I'm also a Founding Partner at Year One Labs, an early stage accelerator in Montreal. Previously I founded Standout Jobs (and sold it). MY BIO >>

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