Entrepreneurship
Disciplined Entrepreneurship: 24 Steps to a Successful Startup
Bill Aulet 2013 11 references
Use when building a startup or validating a business idea — Aulet's 24-step framework for systematic product-market fit through customer-centric discipline.
entrepreneurship startup-methodology product-market-fit customer-development unit-economics market-segmentation venture-creation
Overview
The Core Framework
- Innovation = Invention x Commercialization: zero in either factor = zero innovation; the 24 steps teach the commercialization multiplier
- Start with the customer, not the product: every decision flows from the Persona's priorities, not the founder's assumptions
- Beachhead first: pick one narrow market, dominate it, then expand via bowling pin strategy
- Iterative spiraling: later steps routinely invalidate earlier ones — revision is the process working correctly
- Unit economics are non-negotiable: LTV must be ≥ 3x COCA or the business is a death spiral
Quick Lookup
| Situation | Do This | Avoid This |
|---|---|---|
| Too many market ideas | Segment → narrow with 7 criteria → pick one beachhead | Selling to everyone (China Syndrome) |
| Don't know your customer | Build Persona from a real person with prioritized purchasing criteria | Composite profiles that let the team project assumptions |
| Product feels unfocused | Map the Full Life Cycle Use Case (10 stages) from Persona's perspective | Building before understanding the customer journey |
| Can't articulate your value | Quantify: as-is state vs. possible state in Persona's top priority | Listing features instead of measuring the delta |
| Unclear competitive advantage | Define your Core (single crown jewel) + castle defenses | Confusing IP or first-mover advantage with a Core |
| Don't know who buys | Map the full DMU: champion, economic buyer, influencers, veto, purchasing | Pitching the end user when someone else holds the budget |
| Choosing a business model | Pick from 17 types; model innovation = product innovation in impact | "Free" is not a business model |
| Setting price | Value-based (~20% of value created); align to DMU budget thresholds | Cost-plus pricing |
| Unsure if business is viable | Calculate LTV (8 inputs, 5yr NPV) and COCA (top-down). Ratio ≥ 3:1? | Bottom-up COCA (underestimates 10-20x) |
| Ready to build | Define MVBP: must deliver value + require payment + start feedback loop | MVP without payment validation |
The Key Insight
"Innovation = Invention x Commercialization. A resistance to learning and practicing the skills of commercialization is the key limiting factor." — Bill Aulet, Introduction
References
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