Customer Development

flowchart LR
    subgraph Search
        D[Customer \n Discovery]
        V[Customer \n Validation]
    end
    subgraph Execution
        C[Customer \n Creation]
        B[Company \n Building]
    end
    D --> V --> C --> B
    V -- Pivot --> D

Customer Discovery

• Translate ideas into business model hypothesis
• Test assumptions about the customers needs — “get out of the building”
• Test your solutions by cresting a Minimum Viable Product (MVP)
• 4 Phases — Customer Discovery - How to Build a Startup | Udacity
  1. State hypothesis, draw Business Model Canvas
  2. Test the problem
  3. Test the solution
  4. Verify or Pivot

Customer Validation

• Continue to test all hypothesis
• Validate customers’ interest of proposed solution through early orders or product usage
• Decision: pivot by changing one or more hypothesis or move to execution

Customer Creation

• The product is ready to sell
• Ramp-up sales and marketing spending and resources
• Scale-up the business

Company Building

• Transition from start-up mode
• Migrate from customer development team to functional departments focused on execution.