Unit I.

STARTUP
Engr. Annalyn D. Soria
Instructor
What is LEAN start-up?
A lean startup is a method used to found a new company
or introduce a new product on behalf of an existing
company.
Lean startup is an example of consumers dictating the
type of products they are offered by their respective
markets, rather than those markets dictating what
products will be offered to them.
What is a startup or start-up?

It is a company or project begun by an

entrepreneur to seek, develop, and validate a
scalable economic model.
What is a startup or start-up?
It is a business structure powered by disruptive
innovation, created to solve a problem by delivering a
new product or service under conditions of extreme
uncertainty.
How do STARTUPS work?
Startups have to understand what the customer needs
and be smart enough to convert this into a product that
delivers the most suitable response.

They offer practical, scalable and creative solutions to

everyday problems.
How do STARTUPS work?
Factors to consider:
• Reliance on technology to innovate and deliver the
best products and services.
• The use of the Internet and social networks to achieve
visibility.
• A set of very clear short-, medium- and long-term
objectives.
How do STARTUPS work?
Factors to consider:
• Start-ups define a budget to develop their business
idea. If they need funding, they often turn to solutions
such as crowdfunding.
• It is being run by young, multicultural and
multidisciplinary teams to enrich their perspectives.
Features of Startups
1. Innovation - plays an
essential role in the success of a sta
rtup
. The successful exploitation of new
ideas is crucial to a business being
able to improve its processes, bring
new and improved products and
services to market, increase its
efficiency and, most importantly,
improve its profitability.
Features of Startups
2. Age - A startup is a new company which is still in its
early stages of brand management, sales and hiring
employees. It is known as that the startup age is the
new age.
3. Growth - A startup is a company whose goal is to
grow and expand rapidly, taking up to sometimes
drastic proportions. This is one of the points that
distinguishes a startup from a small business.
Features of Startups
4. Risk - Once a startup has strongly presented a shed
innovative, there are always several associated
uncertainties about ensuring the success of the business.
For this reason, these Business are considered risk
investments with a high failure rate.
5. Flexibility - A startup is very dynamic and ready to adapt to
the adversities that may arise. Due to the need for
validation of your business idea, this business needs to be
ready to tailor their product to meet customer
requirements.
Features of Startups
6. Solving a problem - Associated with shed innovative,
this type of company focuses on solving any existing
problem in the market, hence, makinga difference
not only in the marketplace but also in people's lives
through your product or service.
7. Scalability - A startup is a company in constant
search of a business model that is scalable and
repeatable, that is, it can grow without the need to
increase human or financial resources.
Features of Startups
8. Work team - These businesses are usually made up
of very few people. A startup is a company that is in
the early stages of development in order to solve
real-life problems through a product or innovative
service.
Types of Startups
1. Lifestyle Startups - founded by entrepreneurs who
are working for themselves and what they like in life.
Types of Startups
2. Small Business Startups - Small business where the
owner follows less ambitious goals, to provide only
a comfortable life for his family. Examples of these
are hairdressing salons, grocery stores, bakeries,
among others.
Types of Startups
3. Scalable Startups - founded by entrepreneurs who
believe from the beginning that they can change
the world with their business idea and therefore
worry about finding a model scalable and
repeatable business in order to draw the attention
of investors to boost their business. Examples of
these are Google, Uber and Facebook.
Types of Startups
4. Buyable Startups - These Business are born with
the goal of being sold to large companies after
achieving positive results that catch their attention.
This one type startup is very common in web
solutions development companies and mobile. An
example of this was the purchase of Instagram by
Facebook.
Types of Startups
5. Large Company Startups - These Business have the
main objective of innovation and have a limited
duration of life. A business fall into this category
when it develops products or services that
revolutionaries become quickly recognized by the
market. However, due to market changes, the user
preferences, competitive pressures, these
Business tend to create new innovative products for
new users of different markets.
Types of Startups
6. Social Startups - the main objective of this startup
is not to gain profit, but rather to contribute
positively to the community. One example is the
charity or charitable institutions.
 Unit II.
CUSTOMER
S
Engr. Annalyn D. Soria
Instructor
What is a customer?
A customer is someone who makes use of the paid
products of an individual or organization. This is
typically through purchasing or renting goods or
services.

A customer is an individual or business that purchases

another company's goods or services.
Importance of a Customer
Customer Development
• Comprises of four steps
• Develop by Steve Blank
• Its aim is to
• Validate if the customer needs have been properly
identified
• tested the correct methods for acquiring and converting
customers
• deployed the right resources in the organization to meet
the demand for the product
Customer Development Process
Customer Discovery

This is the first phase of the process and involves identifying

and understanding the target market and potential customers.
During this phase, technopreneurs engage in direct interactions
with potential customers to gather insights, understand their
needs, and validate their assumptions about the problem they
are trying to solve. The main goal is to discover the right target
audience and identify a significant problem or pain point that
the startup's product or service can address.
Customer
Discovery
Customer Validation
In this phase, technopreneurs aim to validate their value
proposition and ensure that there is sufficient demand for
their product or service. They test their hypotheses by
building a Minimum Viable Product (MVP) or a prototype
to gather further feedback from early adopters. The goal is
to confirm that the solution meets the needs of the target
market and that customers are willing to pay for it.
Minimum Viable Product (MVP)
Is a basic version of a product or service that contains only
the core features necessary to meet the early needs and
requirements of its target customers. The primary purpose
of an MVP is to quickly test and validate the viability of a
business idea or product concept with real users while
minimizing development time and costs.
The image represents the general idea
behind the minimum viable product.
The key attributes to consider when developing
your minimum viable product example are:

• MVP is not MVP until it sells; it must carry enough value to the users
• MVP is more about the process, not the product
• MVP is not a product with the minimum number of elements, but
rather has core features sufficient to implement an idea and retain
early adopters
• MVP is based on the lean startup philosophy and implies the iterative
process of building-> measuring-> learning loop until the product
meets the market need completely
• MVP aims to avoid building unuseful, unnecessary products by gaining
insight about the market first
 Customer Validation: Feedback
• This is a process where you will need to be most
objective. There are numerous ways you can gather
customer feedback:
• Interviews
• Focus Groups
• Recording customer’s use of the MVP
Customer Creation
In the customer creation phase, the focus shifts from
validating the product to scaling the business and
acquiring more customers. With the validated value
proposition and feedback from early customers, the
startup can now focus on marketing and sales
strategies to reach a broader audience. The goal is to
attract a larger customer base and drive customer
adoption.
 Company Building
The final phase of the Customer Development Process is the
company building phase. At this stage, the startup shifts its
focus from product development and validation to building
a sustainable and scalable business. This involves optimizing
operations, refining the business model, and establishing
processes to support growth. The company works on
improving customer satisfaction and retention, expanding its
market reach, and securing additional funding if necessary.
ANSOFF Matrix
• Known as the Product-Market Expansion Grid. It is a
strategic planning tool used by businesses to analyze
growth strategies
• Introduced by Russian-American mathematician and
business manager Igor Ansoff in 1957
ANSOFF four strategies
Strategic questions that can be answered using the matrix include:
• Market Penetration: How to sell more of your existing products or
services to your existing customer base?
• Market Development: How to enter new markets?
• Product and Development: How to develop existing products or
services.
• Diversification: How to move into new markets with new products or
services, increase your sales with your existing customer base as well
as acquisition.
ANSOFF Matrix
Market Penetration
This strategy focuses on increasing market share for
existing products in existing markets. The aim is to
attract more customers or increase the frequency of
purchases from current customers. Businesses can
achieve this by offering discounts, improving marketing
efforts, enhancing customer loyalty programs, or
improving the product's features.
Market Development
It involves introducing existing products to new
markets. This strategy requires understanding the
needs of different customer segments and tailoring
marketing and distribution channels to reach those
new markets. This expansion could be geographical,
targeting new regions or countries, or demographic,
targeting new customer groups.
Product Development
In this strategy, the focus is on creating and launching
new products or product variations for existing
markets. Businesses invest in research and
development to introduce innovative products that
cater to the needs of existing customers. Product
development aims to expand the product portfolio and
increase customer engagement.
Diversification
It is the most complex and risky strategy as it involves
entering new markets with new products. This can be
achieved through unrelated diversification, where a
company enters completely different industries, or
related diversification, where the new products and
markets have some connection or synergy with the
existing business.