Here here. Most startups get to step 2 without ever achieving step 1, and so they flame out. Get '4 Steps to the Epiphany.' Drop everything and read it. All will become clear.

Just ordered it off Amazon -- looks like a great book. Thanks.

Good blogs that follow the 4 Steps Model are:

Steve Blank (author of the book) - http://steveblank.com/

Eric Ries - http://startuplessonslearned.blogspot.com/

- An advisee/investment of Steve Blank, started IMVU.com, Venture Advisor at Kleiner Perkins) His blog has become somewhat less useful lately though as he's been using it mostly to promote his "Lean Startup" classes.

Sean Ellis - http://startup-marketing.com/

- Has applied 4 Steps model at many companies, consults on "Customer Development" with VC backed companies

Also Venture Hacks is a great place to start. Check out the archives at http://venturehacks.com/archives/

NP, but its $10 cheaper here: http://www.cafepress.com/kandsranch.58024175 ;)

Absolutely love the 4 Steps book, the best part is how re-reading it as the business grows keeps bringing more insights.

It's hard to digest all the knowledge in it unless the pain has been experienced first-hand