24 Steps to Success! Disciplined Entrepreneurship will change the way youthink about starting a company. Many believe that entrepreneurshipcannot be taught, but great entrepreneurs aren t born withsomething special they simply make great products. Thisbook will show you how to create a successful startup throughdeveloping an innovative product. It breaks down the necessaryprocesses into an integrated, comprehensive, and proven 24-stepframework that any industrious person can learn andapply. You will learn: Why the F word focus is crucialto a startup s success Common obstacles that entrepreneurs face and how toovercome them How to use innovation to stand out in the crowd it s not just about technology Whether you re a first-time or repeat entrepreneur, Disciplined Entrepreneurship gives you the tools you need toimprove your odds of making a product people want. Author Bill Aulet is the managing director of the Martin TrustCenter for MIT Entrepreneurship as well as a senior lecturer at theMIT Sloan School of Management.
PREFACE xiii
ACKNOWLEDGMENTS xv
INTRODUCTION 1
SIX THEMES OF THE 24 STEPS 11
STEP 0 Getting Started 15
STEP 1 Market Segmentation 23
STEP 2 Select a Beachhead Market 41
STEP 3 Build an End User Profile 49
STEP 4 Calculate the Total Addressable Market (TAM) Size for theBeachhead Market 57
STEP 5 Profile the Persona for the Beachhead Market 69
STEP 6 Full Life Cycle Use Case 83
STEP 7 High-Level Product Specification 91
STEP 8 Quantify the Value Proposition 103
STEP 9 Identify Your Next 10 Customers 113
STEP 10 Define Your Core 121
STEP 11 Chart Your Competitive Position 131
STEP 12 Determine the Customer s Decision-Making Unit(DMU) 139
STEP 13 Map the Process to Acquire a Paying Customer 149
STEP 14 Calculate the Total Addressable Market Size forFollow-on Markets 157
STEP 15 Design a Business Model 163
STEP 16 Set Your Pricing Framework 173
STEP 17 Calculate the Lifetime Value (LTV) of an AcquiredCustomer 181
STEP 18 Map the Sales Process to Acquire a Customer 195
STEP 19 Calculate the Cost of Customer Acquisition (COCA)203
STEP 20 Identify Key Assumptions 219
STEP 21 Test Key Assumptions 225
STEP 22 Define the Minimum Viable Business Product (MVBP)235
STEP 23 Show That The Dogs Will Eat the Dog Food 245 STEP 24 Develop a Product Plan 253
POSTLUDE: A BUSINESS IS MORE THAN 24 STEPS 261
GLOSSARY 263
ABOUT THE AUTHOR 265
INDEX 267
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