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This book is a good business bible for new approach to manage a new company known as startups in the post - modern 21st century as the world economy is becoming a knowledge economy where human is at the centre of producing goods and services.

The Lean Startup

The Lean Startup

by Eric Ries

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According to Eric Ries, there are two main reasons for startup failures:

  • Traditional management methods do not work for a highly uncertain startup
  • The second reason may seem completely opposite to the first one 
  •  seeing that traditional management appro...

  • Many people share the opinion that entrepreneurial success is a combination of perseverance, intelligence, a good product, and the luck of being in the right place at the right time.
  •  Routine, small things, and boring details do not matter. 
  •  it is nothing more than just a my...

  • Entrepreneurs are everywhere. 
  • Irrespective of the size of the venture if you guys are working on a product that solves a problem in a new and better way then you are entrepreneurs
  • Entrepreneurship is management. Startups nee...

  • Instead of making complex plans based on many assumptions,
  •  you can make constant adjustments with a steering wheel called the Build-Measure-Learn feedback loop. 
  • Startups are greatly analogous to driving a car to our office as we know the destination but we may change the ro...

The feedback that a startup receives in its experiments

 can be qualitative (which product options they like and which they don't) 

or quantitative (how many customers use the product, the number of registered users).

The Lean Startup concept is based on a Build-Measure-Learn fe...

  • For a startup, you need to start creating a Minimum Viable Product (MVP) as soon as possible. 
  • MVP is a version of a product that allows you to start the Build-Measure-Learn cycle with minimal effort, spending as little development time as possible.
  • Such a crude product may b...

  1. Video MVP {A video that explains your product or solution to measure traction}
  2. The Concierge MVP {idea that when you’re just starting out you don’t need to be able to handle thousands of customers, you just need to make one customer happy} great way to validate your hypothesis

  • "Measure" means determining whether the efforts to create a product are producing the desired results. 
  • And this is the key difference between Lean Startup valuation and standard methods, where deadlines and budget utilization are assessed, 
  • but it may not be considered that ...

  • It means to figure out whether the chose path lead to success or we need to pivot
  • When an entrepreneur sees that the chosen path does not lead to success, 
  • he must be ready to find a new strategic hypothesis and stop spending money on following the unnecessary direction.
  • ...

  • It is not uncommon for entrepreneurs to first create a product and then find out consumers' reactions. But the point is to do the opposite.
  • The goal of creating a Minimum Viable Product (MVP) is to start learning and testing in practice as soon as possible. 
  • An MVP is needed ...

  1.  Create MVP and get feedback to understand the real state.
  2. Try to bring metrics closer to ideal ones. It can take a lot of trying.
  3. Decide whether to move in the same direction or make a pivot.
  4. If you are close to the ideal metrics, you need to move in the same directi...

  • If nobody uses your product, then optimization or marketing will make no sense. 
  • A startup must be very clear about making clear and well-founded predictions to prove that a good business can be built with the product. 
  • The necessary indicators are often replaced by those tha...

  • When it becomes clear that the initially chosen path will not lead to success, 
  • the entrepreneur is required to make a pivot - to radically change the strategy, create and test a new hypothesis about the product.
  • The pivot's essence is to take into account everything that you...

Small batch approach

The Lean Startup methodology is based on a small batch approach, borrowed from the concept of lean manufacturing.

  • When working in small batches, the finished product is produced every few seconds. 
  • When working in large batches, all t...

  • The rules that govern sticky growth are pretty simple: if the acquisition rate exceeds the loss rate, then the popularity of the product rises. Therefore, companies need to track consumer losses.

  • For a company to grow steadily over a long time using a paid-growth tool, it needs a differentiated ability to 'monetize' a particular group of users.
  • For example, at IMVU (Ries' ex-company), this was due to introducing the ability to get off funds from mobile phones, which helped th...

  • The lean startup is developing a product based on the expressed desires of the market.
  • The lean startup uses validated learning, which is a process by which companies assess consumer interest.
  • Lean startup methods focus heavily on customer-related information such as customer...

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The organization can be confusing. While this manual takes the reader sequentially through the necessary tasks of starting up the startup.

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