Disciplined Entrepreneurship Workbook

The essential companion to the book that revolutionized entrepreneurship

Disciplined Entrepreneurship Workbook provides a practical manual for working the 24-step framework presented in Disciplined Entrepreneurship. Unlocking key lessons and breaking down the steps, this book helps you delve deeper into the framework to get your business up and running with a greater chance for success. You'll find the tools you need to sharpen your instinct, engage your creativity, work through hardship, and give the people what they want?even if they don't yet know that they want it. Real-world examples illustrate the framework in action, and case studies highlight critical points that can make or break you when your goal is on the line. Exercises and assessments help you nail down your strengths, while pointing out areas that could benefit from reinforcement?because when it comes to your business, "good enough" isn't good enough?better is always better.

Disciplined Entrepreneurship transformed the way that professionals think about starting a company, and this book helps you dig into the proven framework to make your business dreams a reality.

• Delve deeper into the 24 steps to success
• Innovate, persevere, and create the product people want
• Internalize lessons learned from real-world entrepreneurs
• Test your understanding with exercises and case studies

The book also includes new material on topics the author has found to be extremely useful in getting the most value out of the framework including Primary Market Research, Windows of Opportunity and Triggers.  The book also introduces the Disciplined Entrepreneurship Canvas to track your progress on this journey.

Starting a company is a serious undertaking, with plenty of risk and sacrifice to go around?so why not minimize the risk and make the outcome worth the sacrifice? Author Bill Aulet's 24-step framework is proven to build a successful business; the key is in how well you implement it. Disciplined Entrepreneurship Workbook helps you master the skills, tools, and mindset you need to get on your path to success.

Preface xiii

Introducing the Disciplined Entrepreneurship Canvas xv

What Is the Disciplined Entrepreneurship Canvas, and Why Is It Important?

How to Approach the Disciplined Entrepreneurship Canvas

Example of Using the Disciplined Entrepreneurship Canvas with Feedback

Step 0 How Do I Get Started? Should I? 1

Your Passion

Your Team

Coming Up with an Idea or a Technology

Hybrid Idea: Mix of Market Pull and Technology Push

Step 1 Market Segmentation 11

What Is Step 1, Market Segmentation?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

Bonus Topic  A Practical Guide to Primary Market Research 23

What Is Primary Market Research?

Worksheets

Step 2 Select a Beachhead Market 39

What Is Step 2, Select a Beachhead Market?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheets

Decision for Team to Sign Off on the Beachhead Market

Step 3 Build an End User Profile for the Beachhead Market 47

What Is Step 3, Build an End User Profile for the Beachhead Market?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheet

Step 4 Estimate the Total Addressable Market (TAM) for the Beachhead Market 53

What Is Step 4, Estimate the Total Addressable Market (TAM) for the Beachhead Market?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheets

Advanced Topics: Bottom‐Up TAM Analysis

Step 5 Profile the Persona for the Beachhead Market 65

What Is Step 5, Profile the Persona for the Beachhead Market?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheets

Advanced Topic: Persona Profiles for Multisided End User Market

Step 6 Full Life Cycle Use Case 79

What Is Step 6, Full Life Cycle Use Case?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheets

Step 7 High-Level Product Specification 87

What Is Step 7, High-Level Product Specification?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheets

Advanced Topic: High-Level Product Brochure

Step 8 Quantify the Value Proposition 95

What Is Step 8, Quantify the Value Proposition?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheets

Step 9 Identify Your Next 10 Customers 101

What Is Step 9, Identify Your Next 10 Customers?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheets

Step 10 Define Your Core 113

What Is Step 10, Define Your Core?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercise to Understand Concept

Worksheet

Step 11 Chart Your Competitive Position 119

What Is Step 11, Chart Your Competitive Position?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercise to Understand Concept

Worksheet

Step 12 Determine the Customer’s Decision-Making Unit (DMU) 125

What Is Step 12, Determine the Customer’s Decision-Making Unit (DMU)?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheet

Step 13 Map the Process to Acquire a Paying Customer 131

What Is Step 13, Map the Process to Acquire a Paying Customer?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheets

Bonus Topic

Windows of Opportunity and Triggers 143

What Are Windows of Opportunities and Triggers?

Why Are They Important and Why Now?

Process Guide

General Exercises to Understand Concept

Worksheet

Step 14 Estimate the Total Addressable Market (TAM) Size for Follow-on Markets 153

What Is Step 14, Estimate the Total Addressable Market (TAM) Size for Follow-on Markets?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheet

Step 15 Design a Business Model 161

What Is Step 15, Design a Business Model?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheet

Step 16 Set Your Pricing Framework 169

What Is Step 16, Set Your Pricing Framework?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheet

Step 17 Estimate the Lifetime Value (LTV) of an Acquired Customer 175

What Is Step 17, Estimate the Lifetime Value of an Acquired Customer?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheet

Step 18 Map the Sales Process to Acquire a Customer 181

What Is Step 18, Map the Sales Process to Acquire a Customer?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheets

Example

Step 19 Estimate the Cost of Customer Acquisition (COCA) 199

What Is Step 19, Estimate the Cost of Customer Acquisition (COCA)?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheets

Step 20 Identify Key Assumptions 209

What Is Step 20, Identify Key Assumptions?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheet

Step 21 Test Key Assumptions 215

What Is Step 21, Test Key Assumptions?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercise to Understand Concept

Worksheet

Step 22 Define the Minimum Viable Business Product (MVBP) 221

What Is Step 22, Define the Minimum Viable Business Product (MVBP)?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercise to Understand Concept

Worksheet

Step 23 Show That “The Dogs Will Eat the Dog Food” 225

What Is Step 23, Show That “The Dogs Will Eat the Dog Food”?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercise to Understand Concept

Worksheet

Step 24 Develop a Product Plan 231

What Is Step 24, Develop a Product Plan?

Why Do We Do This Step, and Why Do We Do It Now?

Process Guide

General Exercises to Understand Concept

Worksheets

Beyond the 24 Steps 241

What Is Missing in the 24 Steps?

Worksheet

Exercise Answers 245

Index 253

BILL AULET is Managing Director of the Martin Trust Center for MIT Entrepreneurship and a Senior Lecturer at the MIT Sloan School of Management. Prior to joining MIT, Bill had a 25-year track record of success in business, beginning at IBM, where he worked for 11 years, before becoming a serial entrepreneur. He started and ran Cambridge Decision Dynamics and SensAble Technologies. Today, in addition to teaching at MIT, he works around the world with individual entrepreneurs, small companies, educators, large companies, and governments to promote innovation-driven entrepreneurship.

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