They need to understand the external environment and they need to come in.

Well, if you think about it, in a new market on year 1 you have no customers, and so your revenue is essentially flat.

This was a startup killer for decades.

What you've already put together is a business model canvas with your hypothesis that says, Look, we're really passionate about this product or service, and we think there's a set of customers out there, and we've put together a revenue model, our first hypotheses and saying we're going to make a lot of money, and that's great, but there's really kind of a method to this madness, and there's not only one way to do this, but this is the way we kind of think of it.

Again the only way to figure this out is being able to interact with tens or hundreds or thousands of customers so you finally understand what the right revenue streams and revenue model is.

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

In an existing market, if customers react to your hypothesis that what they needed was higher performance and you are correct, this is your revenue curve.

And now they started to get a better understanding of what customer relationships were, about getting customers, keeping them and growing them.

Our new contacts will give us access to bluechip clients, national governments...

The next thing is revenue streams.

So archetypes really helped us understand our customers, they value prop, the revenue and some of our pricing tactics.

You want to test the ability of some portion of your product and meet minimal customer needs and that might change over time but as the MVP slowly grows as your confidence in what the customer archetype is.

Defense department's largest contractor.

The return on the investment will be high.

More than likely we'll make money from royalties and commercial licensing, etc.

That's a gentlemen's club. I told you about it. The Singapore clients come to the city, they love that crap.

I want them to either pay for the product or sign up for something and become a user.

So this is trailing 12 months.

The customer development process is actually a 4 step process.

Done. Last page has Bowman's clients from the U.S.

Just as a reminder, what the teams will be starting with in Week 1 is filling out the business model canvas and getting out of the building and testing their hypotheses about the value proposition, customer segments, and channel.

How do they currently buy and what's the revenue stream that's associated with these kind of pricing tactics?

Why wouldn't I just pour all of my money?

It looks like our profit is jumping all over the place.

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

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

Banks charge higher interest on loans to risky customers.

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

We care how we make our profit.

In a non perfect world, you might just be a user and I'm going to monetize you by getting pairs to pay for the fact that I have lots of users, but acquisition that is acquire, and activation is a 2 parts strategy.

We've already talked about value propositions, customer segments, distribution channels, customer relationships, and revenue streams.

Have you seen the latest figures, children?

In particular, because the idea is that if you analyze the data, that data will tell you something about your customers and then you can better serve your customers and then your profits will go higher.

Well getting customers is just like it sounds.

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?

Maybe Abby made 50 and Ben earned 0.

The company's profitability improved.

Pricing is kind of the tactics.

Because when someone says earnings, are those the earnings last year?

Abby's and Ben's earnings given only this first constraint.

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

So a plus b have to be equal to 50.

The most likely estimate

That's a big idea, because if you think about it, we have all these processes to manage the engineering process, why?

We have recently accepted a client who is VampireAmerican.