Intermediate

Approx. {{courseState.expectedDuration}} {{courseState.expectedDurationUnit}}

Assumes 6hr/wk (work at your own pace)

Join {{265591 | number:0}} Students
view course trailer
View Trailer

Course Summary

In an introduction to the basics of the famous Customer Development Process, Steve Blank provides insight into the key steps needed to build a successful startup.

The main idea in this course is learning how to rapidly develop and test ideas by gathering massive amounts of customer and marketplace feedback. Many startups fail by not validating their ideas early on with real-life customers. In order to mitigate that, students will learn how to get out of the building and search for the real pain points and unmet needs of customers. Only with these can the entrepreneur find a proper solution and establish a suitable business model.

Building a startup is not simply building an execution plan for a business model that the entrepreneur thinks will work, but rather, a search for the actual business model itself.

Why Take This Course?

You will learn the business skills it takes to bring your idea from conception to market. These include:

  • Actively listening and engaging your customers to find out what exactly they want in your product and how you should deliver it to them

  • Gathering, evaluating and using customer feedback to make your product, marketing, and business model stronger

  • Engaging your customers through the three phases of the customer relationship management lifecycle: get, keep, and grow

  • Identifying key resources, partners, activities, and distribution channels required to deliver your product to your customer

  • Calculating your direct and indirect costs for delivering your product

Prerequisites and Requirements

This class involves no programming. The characteristics of a budding entrepreneur: passion, tenacity, and a willingness to work hard, are essential.

We also recommend you join the class with at least a rough idea of a business model for a startup you would like to work on throughout this class.

See the Technology Requirements for using Udacity.

What Will I Learn?

Projects

Talk to customers, build a Business Model Canvas, prototype your product and pitch to coaches.

Syllabus

Lesson 1: What We Now Know

  • History of the Corporation
  • Startups Are Not Smaller Versions of Large Companies
  • Waterfall Development
  • Customer vs. Product Development
  • Entrepreneurial Education

Lessons 1.5A and 1.5B: Business Models and Customer Development

  • Value Proposition
  • Customer Segments
  • Revenue Streams
  • Key Resources
  • Customer Development Processes
  • Minimum Viable Product
  • Market Opportunity Analysis

Lesson 2: Value Proposition

  • Value Proposition and the Minimum Viable Product
  • Customer Archetype
  • MVP Physical && Web/Mobile
  • Common Mistakes With Value Proposition

Lesson 3: Customer Segments

  • Product Market Fit
  • Rank and Day in the Life
  • Multiple Customer Segments
  • Market Types Introduction: Existing, Resegmented, New, Clone
  • Consequences of Not Understanding a Market

Lesson 4: Channels

  • Distribution Channels Overview
  • Web Distribution
  • Physical Distribution
  • Direct Channel Fit
  • Indirect Channel Economics
  • OEM Channel Economics

Lesson 5: Customer Relationships

  • Paid Demand Creation
  • Earned Demand Creation
  • Get Physical
  • Viral Loop
  • Web Customer Acquisition Costs

Lesson 6: Revenue Models

  • How Do You Make Money
  • Revenue Streams and Price
  • Direct and Ancillary Models
  • Common Startup Mistakes
  • Market Types and Pricing
  • Single and Multiple Side Markets
  • Revenue First Companies
  • Market Size and Share

Lesson 7: Partners

  • Partner Definition
  • Partner Resources
  • Partner Types
  • Greatest Strategic Alliance
  • Joint Business Development

Lesson 8: Resources, Activities and Costs

  • Four Critical Resources
  • Financial Resources
  • Human Resources
  • Qualified Employees and Culture
  • Intellectual Property Overview

Instructors & Partners

Steve Blank is a seasoned Silicon Valley entrepreneur. Translation: he has failed and--more often--succeeded, in a 21-year career building 8 Valley startups, including several with major IPO's. Along the way, he's learned an incredible amount, and has spent the last decade sharing what he's learned with entrepreneurs all over the world. Author of two famous books on entrepreneurship, The Four Steps to the Epiphany, and The Startup Owner's Manual. Steve teaches entrepreneurship at Udacity, Stanford, Berkeley, Columbia, and other major universities worldwide. He was named "Master of Innovation" by Harvard Business Review and is an advisor to many successful entrepreneurs. He is also an avid conservationist, contributing generously to preserve the California Coast.

Kathleen manages content development at Udacity. EP245 is the first class for which she is working as the official Course Developer. She's learned a lot from Steve while producing his class and hopes to help students with the course in any way she can!

Frequently Asked Questions


When does the course begin?

This class is self paced. You can begin whenever you like and then follow your own pace. It’s a good idea to set goals for yourself to make sure you stick with the course.

How long will the course be available?

This class will always be available!

How do I know if this course is for me?

Take a look at the “Class Summary,” “What Should I Know,” and “What Will I Learn” sections above. If you want to know more, just enroll in the course and start exploring.

Can I skip individual videos? What about entire lessons?

Yes! The point is for you to learn what YOU need (or want) to learn. If you already know something, feel free to skip ahead. If you ever find that you’re confused, you can always go back and watch something that you skipped.

What are the rules on collaboration?

Collaboration is a great way to learn. You should do it! The key is to use collaboration as a way to enhance learning, not as a way of sharing answers without understanding them.

Why are there so many questions?

Udacity classes are a little different from traditional courses. We intersperse our video segments with interactive questions. There are many reasons for including these questions: to get you thinking, to check your understanding, for fun, etc... But really, they are there to help you learn. They are NOT there to evaluate your intelligence, so try not to let them stress you out.

What should I do while I’m watching the videos?

Learn actively! You will retain more of what you learn if you take notes, draw diagrams, make notecards, and actively try to make sense of the material.