The Lean Startup Summary

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 approaches do not work, entrepreneurs let things go by themselves and are guided by the "just do it" principle.

Even such a chaotic and unpredictable phenomenon as a startup (can) should be managed. And this is what we document in this stash

• 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 myth, partly imposed by pop culture. 

It's exactly the boring little things that are critical to a startup's success.

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 approaches do not work, entrepreneurs let things go by themselves and are guided by the "just do it" principle.

• 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 myth, partly imposed by pop culture. 

It's exactly the boring little things that are critical to a startup's success.

• 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 need a new type of management that will handle the conditions of extreme uncertainty.
• Confirmation by facts. A startup needs continuous learning through a scientific approach and empirical hypothesis testing.

Revolutionizing the way startups are built and businesses are launched.

Identify a pressing problem or pain point that your product or service aims to solve. Focus on delivering value and addressing real customer needs.

Build a basic version of your product with core features to gather feedback and validate assumptions. Iterate based on user insights to refine and improve your offering.

Innovation accounting is a methodology used by organizations, especially in the context of startups and product development, to measure and track the progress of innovation initiatives. It helps teams assess the value of their ideas, products, or projects and make informed decisions about resource allocation.

We're getting lost a bit here when we are bombarded with new info, i mean, what does methodology even mean?? Don't worry, let's simplify all of it.

*Imagine you have a big puzzle to solve, but you're not sure which pieces fit together. Innovation accounting is like a special way of keeping track of how well you're doing in solving that puzzle.

You just have to measure data after collecting it, and then learn from that measurement, change your strategies and plans if they are not giving you so great results after measurement, and most importantly, you keep trying

Well it's called the Key Metrics, Identifying and tracking specific key performance indicators (KPIs) that are relevant to the innovation project.

These metrics often go beyond traditional financial measures and may include user engagement, customer feedback, or product usage data.

For those whoe worked in customer service before, your KPI's are you average monthly performance indicators, how many calls did you get for how many minutes, how satisfied were the customers after every call, did you get enough surveys? What needs to be improved about your communication style? And so on and so forth.

In "The Lean Startup," Eric Ries revolutionizes our understanding of entrepreneurship, advocating for a lean, agile approach in business. This influential book guides readers through the process of building a startup in an uncertain economic landscape, emphasizing the importance of adaptability, customer feedback, and iterative development.

Ries introduces the concept of the Build-Measure-Learn loop, a core principle of the Lean Startup methodology. He emphasizes the importance of creating a minimal viable product (MVP), measuring its impact through customer feedback, and learning from the results to make rapid adjustments.

The lean startup offers both entrepreneurs and wantreprenuere a semi scientific, real-world approach to building a business by using validation, finding a profitable business model and creating a growth engine.

• Find a business model that works through validation.

• Use split testing to tell value from waste.

• Never ever indulge in vanity metrics.

Despite serious business plans, well thought-out business models, detailed go-to-market strategies, and large investments, most startups fail.

why is this so? Eric Ries, the author of the Lean Startup Methodology, is sure that the traditional approach to business development does not apply to startups.

Runway is usually defined as the cash left in the bank divided by the monthly burn rate. Runway can be extended by cutting costs or raising more money.

However, the true measure of runway is the number of pivots a startup has left. From this point of view, runway can be extended by getting to each pivot faster. This means the stratup has to find ways to achieve the same amount of validated learning at lower cost or in a shorter time.

In today's world, everyone knows what a startup is, but what they don't know is that a startup is different from a traditional business. Unlike established businesses, startups have many uncertainties in their path to success.

Many people think that startup is all about developing a bridge between the problems faced by the consumers and the solution to them, but this is not true. A successful startup should have a solution to a problem statement as well as a system in their company.

Build- You build a product

Measure- You test the product in the market

Learn- You gain validated learning from your target audience regarding your product fit in the market.

And after gaining insight through your validated learning, one has to work on the downsides of the product and then measure the product again on the respective market and learn. The cycle continues until the company has shaped the product as good as perfect.

MVP stands for minimum viable product. To test your product in the market for the very first time you need to build a basic prototype of your product incorporated with needful and USP features.

One has to make an MVP first and continuously innovate through early feedback to make a final product that can be released into the market as a flagship product.

Zvažte například doporučení vytvořit multifunkční týmy a dát jim zodpovědnost za to, co nazýváme milníky ve vzdělání, namísto organizace své společnosti do striktně funkčních oddělení (marketing, obchodní oddělení, IT, lidské zdroje atd.), která činí lidi odpovědnými za výkon ve vymezených specializovaných oblastech (viz kapitolu 7).

Mají-li lidé vyhodnotit svoji produktivitu lokálně, pokládají za dobrý den ten, v němž jim šla po celý den práce dobře od ruky. Když jsem ještě pracoval jako programátor, znamenalo to osm hodin programování bez přerušení. To byl pro mě dobrý den. Jakmile mé vyrušovaly otázky, procesy nebo (nedej bože, abych na ně zapomněl) schůzky, cítil jsem se špatné. Co jsem vlastně v takový den doopravdy dokázal? Kód a produktové funkce pro mě byly měřítkem, mohl jsem je vidět, pochopit a demonstrovat. Získávání védomostí je neuchopitelné, a proto frustrující.

Cílem startupu je správné určit, jakou věc vytvořit - věc, kterou zákazníci chtějí a zaplatí –, a to co nejrychleji. Jinými slovy: Lean Startup je novým způsobem nahlížení na vývoj nových inovativních produktů, který zahrnuje rychlou iteraci a postřehy zákazníků, notnou dávku vize a velké ambice, a to všechno najednou.

The business and marketing functions of a startup should be considered as important as engineering and product development

The application of lean thinking to the process of innovation. It is a new way of looking at development of innovative new products that emphasizes fast iteration and customer insight, huge vision, and great ambition.

Use scientific experimentation to discover how to build a sustainable business