Table of Contents

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 the Beachhead 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 for Follow-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 Acquired Customer 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

About the 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. Prior to joining MIT, he had a25-year track record of success in business, from his start at IBMto his experience as a serial entrepreneur. He started and ranCambridge Decision Dynamics and SensAble Technologies. He worksaround the world with entrepreneurs, small companies, largecompanies, and governments to promote innovation-drivenentrepreneurship.