Phase

Goals

Deliverables

0. Get Buy-in

Investors / founders agree on CustomerDevelopment, key hires, and values.

Buy-In, Core Values

1. State Hypotheses

Set product specs, develop detailed hypothesis of product, first customers, channels and pricing, demand, market, and competition.

Hypothesis Briefs

2. Test & Quality Hypotheses

Test hypotheses from phase 1. Understand customers' "day in the life"

Validate

3. Test & Qualify Product Concept

Test product concept. Do customers' needs match the product?

Hypotheses

4. Verify

Found the right market? Have a profitable business?

Validate

Phase

Goals

Deliverables

1. Product Hypotheses

Get agreement on product features, benefits, and release schedules

Product Brief

2. Customer Hypotheses

Describe customers, their problems, and why they will use the product

Customer Brief

3. Channel & Pricing Hypotheses

Develop a channel strategy and pricing model

Channel and Pricing Brief

4. Demand Creation Hypotheses

Identify demand creation strategy, influencers, and trends

Demand Creation Brief

5. Market Type Hypotheses

Describe what market you are in (new, existing, resegmented)

Market Type Brief

6. Competitive Hypotheses

Develop competitive analysis that fits your market type

Competitive Brief

Phase

Goals

Deliverables

1. First Customer Contacts

Create customer list and schedule the first customer contacts

Customer List

2. Problem Presentation

Develop presentation of problems, current solutions, product solution

Problem Presentation

3. In-Depth Customer Understanding

Understand how customers work, their problems and who else influences their decisions

Customer Brief

4. Market Knowledge

Understand the market: meet w/analysts & media, trade shows, research

Positioning Brief

Phase

Goals

Deliverables

1. First Reality Check

Review customer / product feedback & test phase 1 customer problem assumptions

Revise Product Customer Brief

2. Product Presentation

Create product presentation on how product solves customers' problems

Product Presentation

3. More Customer Visits

Expand customer list to include five new potential customers

Customer List

4. Second Reality Check

Review product feature feedback and test

Updated Feature List

5. First Advisory Board Members

Spot and recruit first advisory board members

Advisors on Board

Phase

Goals

Deliverables

1. Problem Verification

Verify that you have identified a problem that a customer wants solved

Problem Statement

2. Product Verification

Verify that the product solves customer's needs and its ROI

Product Requests Document

3. Business Model Verification

Verify that you have a profitable business model

Updated Revenue / Sales Plan

4. Iterate or Exit

Decide whether you have learned enough to go sell

Business / Product Plan