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Our team has a big experience in startups and VC. Some of the teammates came from software development services. This fusion of expertise and experience lets us masterly solve real clients issues.

Here are some key points that you should focus on in your startup. These are the points we help our clients to focus on.

Table of content:

1. Product/Market Fit
2. Innovative products' consumers
3. Agile
4. Lean Startup Methodology
5. Hockey Stick



Product/Market Fit

Product/market fit it's being in a good market with a product that can satisfy that market. In a two words, it means that people want your stuff. 

On the chart you can see 5 stages that companies go through: Empathy, Stickiness, Virality, Revenue and Scale. You can't scale you business until you sure that first 3 stage completed. 

A little bit in details about each stage: 
1) Empathy — I’ve found a real, poorly-met need a reachable market faces. And I’ve figured out how to solve the problem in a way they will adopt and pay for.
2) Stickiness — I’ve built the right product that keeps users around.
3) Virality — Users base growth organically and artificially.
4) Revenue — I’ve found a sustainable, scalable business with the right margins in a healthy ecosystem.
5) Scale — I can achieve a successful exit for the right terms.

First three stages are the most important part for startups. This is that part, Steve Blank called Customer Development.

Most of the techniques/pattern that you can find, came out from Online Marketing: A/B Testing, Funnels, Referral Optimization, etc. They are about optimizing, not innovating. So, don’t look for how to scale your startup. Look for customers and their needs.

Innovative products' consumers

Groups are distinguished from each other based on their characteristic response to discontinuous innovations created by new technology.

Innovators (2.5%) – Innovators are the first individuals who adopt an innovation. Innovators are willing to take risks, youngest in age, have the highest social class, have great financial lucidity, very social and have closest contact to scientific sources and interaction with other innovators. Risk tolerance make them adopting technologies which may ultimately fail. Financial resources help absorb these failures.

Early Adopters (13.5%) – This is the second fastest category of individuals who adopt an innovation. These individuals have the highest degree of opinion leadership among the other adopter categories. Early adopters are typically younger in age, have a higher social status, have more financial lucidity, advanced education, and are more socially forward than late adopters. More discrete in adoption choices than innovators. Realize judicious choice of adoption will help them maintain central communication position.

Early Majority (34%) – Individuals in this category adopt an innovation after a varying degree of time. This time of adoption is significantly longer than the innovators and early adopters. Early Majority tend to be slower in the adoption process, have above average social status, contact with early adopters, and seldom hold positions of opinion leadership in a system.

Late Majority (34%) – Individuals in this category will adopt an innovation after the average member of the society. These individuals approach an innovation with a high degree of skepticism and after the majority of society has adopted the innovation. Late Majority are typically skeptical about an innovation, have below average social status, very little financial lucidity, in contact with others in late majority and early majority, very little opinion leadership.

Laggards (16%) – Individuals in this category are the last to adopt an innovation. Unlike some of the previous categories, individuals in this category show little to no opinion leadership. These individuals typically have an aversion to change-agents and tend to be advanced in age. Laggards typically tend to be focused on “traditions”, likely to have lowest social status, lowest financial fluidity, be oldest of all other adopters, in contact with only family and close friends, very little to no opinion leadership.

Let's place it all to a one chart. We will take smth like this:

With titles:

Let's clean it up a little bit. Now we have chart separated by 5 segments. Each segment - different type of customers. It's classical chart of Technology Adoption Life Cycle. But here is a moment. This chart is an "ideal model".

In real life here is a gap or "chasm" between the first two adopter groups and majority. Visionaries and pragmatists have very different expectations, and he explores those differences and suggest techniques to successfully cross the "chasm," including choosing a target market, understanding the whole product concept, positioning the product, building a marketing strategy, choosing the most appropriate distribution channel and pricing. 


Yeah, almost all software development companies write, that they work with Agile. "Sprints", "backlog", "tickets", etc. But sometimes it doesn't help. We deeply believe, Agile is minimum necessary for startups but insufficient method. Only tightly with Lean it can give a result in startup's conditions of uncertainty. 

On the scheme below you can see how modern methodologies intersects. And (the main point!) where is startups on it.

Lean Startup Methodology

The Lean Startup provides a scientific approach to create and manage startups and get a desired product to customers' hands faster. The Lean Startup is how to drive a startup-how to steer, when to turn, and when to persevere-and grow a business with maximum acceleration.

Too many startups begin with an idea for a product that they think people want. They then spend months/years, perfecting that product without ever showing the product, even in a very rudimentary form, to the prospective customer. When they fail to reach broad uptake from customers, it is often because they never spoke to prospective customers and determined whether or not the product was interesting. 

The Lean Startup methodology has as a premise that every startup is a grand experiment that attempts to answer a question. The question is not "Can this product be built?" Instead, the questions are "Should this product be built?" and "Can we build a sustainable business around this set of products and services?". Such experiment is more than just theoretical inquiry; it is a first product. If it is successful, it allows to get started with campaign: enlisting early adopters, adding employees to each further experiment or iteration, and eventually starting to build a product. By the time when product is ready to be distributed widely, it will already have established customers. It will solve real problems and offer detailed specifications for what needs to be built.

The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or persevere. That's why a core component of Lean Startup methodology is the build-measure-learn loop:
- figuring out the problem that needs to be solved;
- developing MVP to begin the process of learning as quickly as possible;
- learn customers' feedback.
Once the MVP is established, a startup can work on tuning the engine. This will involve measurement and learning and must include actionable metrics that can demonstrate cause and effect question.

Hockey Stick

Usually company's life cycle visualized like hockey stick chart. This chart describes the costs and profits of a product from technological development phase to market maturity to eventual decline. Research and development (R&D) costs must be offset by profits once a product comes to market. Varying product lifespans mean that businesses must understand and accurately project returns on their R&D investments based on potential product longevity in the market. Classical chart looks like this:

But in real life it looks like this:

All life cycles has four distinct stages: R&D, Ascent, Maturity, and Decline.

Research and Development (aka R&D) - During this stage, risks are taken to invest in technological innovations. During this period company hires engineers, registers intellectual property and work toward first versions of product.

Ascent Phase - This phase covers the timeframe from product invention to the point at which out-of-pocket costs are fully recovered. At this junction the goal is to see the rapid growth and distribution of the invention and leverage the competitive advantage of having the newest and most effective product.

Maturity Stage - As the new innovation becomes accepted by the general population and competitors enter the market, supply begins to outstrip demand. During this stage, returns begin to slow as the concept becomes normalized.

Decline Phase - The final phase is when the utility and potential value to be captured in producing and selling the product begins dipping. This decline eventually reaches the point of a zero-sum game, where margins are no longer procured.

Full cycle looks like this:

Notice, where is the place of startups. That's why, after rapid growth (synonym of startup) becomes an IPO. If you are interested more about investments in company's life cycle, this chart is for you:


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