The document discusses the differences between exploration and exploitation for startups. It notes that companies focus on refining products for known customers through exploitation, while startups must find customers for specified products through exploration. It then outlines a process for startups that involves concept development, customer discovery to define and test problem hypotheses, customer validation to develop scalable sales, and pivoting if validation fails. Examples of pivot types are also provided.
5. Exploration vs. Exploitation
Company: Spec, develop & refine product for known customers
vs.
Startup: Find customers for a spec’d product
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14. if Customer Validation fails then Pivot
A few examples:
• Customer need pivot: same customer segment, different need/
problem
• Technology pivot: solve same problem but with different
technology stack
• Channel pivot: same problem, same solution, different path to
customers
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