Existing markets well, the customers well, they're know. We know who they are. They exist.

At clone market, the customers are possibly known because you copied an existing market

But the next step is you get out of the building.

It assumes you will be going through this multiple times.

The goal was not to use this process to find all the bugs though they might come up.

Unexpectedly short lived code, that's pretty bad. Legacy code is actually successful, right?

Oh, I have a great Rolodex, great set of contacts.

By now, you're intimately familiar with the business model canvass.

And in value proposition, the goal of this is to find out that minimum viable product.

So on day one, these were their initial hypothesis coming into the class.

In customer relationships all the get keep grow metrics, some of which we talked about, some of which you'll discover, what were the customer acquistion costs?

Now if you remember we started here on the left. We didn't earn and paid media.

Tektronix's new software perfectly responds to the needs of customers using logic analysers.

And product market fit just simply says what is the match between what you are building and what customers need and want, and who are those customers.

The next piece about customer development to understand is what is it you're actually doing outside the building?

It turns out that the answer is pretty specific.

And the fourth phase in customer discovery is you verify your pivot.

Now we finally come to the last part of the business model canvas.

The value proposition says, Hey, it's not about your ideal product, it's about solving a problem or a need for a customer.

Instead of pricing based on cost,

Many companies have huge databases of customer information.

So in the last lecture, you remember the business model canvas, all the 9 components of a startup.

They could tell you that I want bigger, faster, cheaper status quo.

You cater an event where the cost to you was 200

I have no idea where my husband is.

So in our last lectures we talked about value proposition, customer segments, distribution channels, customer relationships get, keeping and growing customers.

So there's another phrase called beautiful code and that's what we want you to build beautiful code.

As was simulated, the value proposition includes all the features of your product but also the pains and gains you're solving for the customer segment and that's where the market goes.

Because no one, and that was a constant problem...

It's a big idea.

Apple is one of the few, truly cares.

That's your job as the facilitator and coach.

We've got customers.

Who do you do that for?

Defense department's largest contractor.

He's not the client.

This is where you construct your hypotheses, and you get out of the building and start testing your assumption about whether other people have the same problem or need you think they have.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

I mean how do they hear of our products, how do they know about you, and as we'll see later one of the interesting things is there are some customers that are users like in Google

have breakfast with them... do whatever it takes to familiarize them with our packages.

What's most important to us when we make a video is what the customer sees.

We will take it to the potential customers.

Next, they got out of the building again.

What we now know is that the founders need to run what's called the customer development team.