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Why Do startups fail ??

Why Do startups fail ??

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


8.17K reads


Genchi Genbutsu

Genchi Genbutsu

  • Genchi Genbutsu, which is translated as "go and see." This principle is guided, in particular, in Toyotа. 
  • A manager responsible for the development of the Sienna minivan travelled around all the US states and talked with families, 
  • finding out which minivan Americans want to...


1.89K reads

3. Paid engine of growth.

  • 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...


1.2K reads

Vanity metrics

  • 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...


1.41K reads

Continuation of the above topic

Continuation of the above topic

  • The cycle "build-measure-learn". First, create an MVP of the product, evaluate consumers' reaction, 
  • And then decide whether to continue on the chosen course or change your direction.
  • Innovation Accounting. This is what is co...


5.09K reads

What is a Lean Startup?

What is a Lean Startup?

  • 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...


7.6K reads

2. Viral engine of growth.

  • It's called the viral loop, and its speed is determined by the viral rate. 
  • The higher this coefficient, the faster the product will gain popularity. 
  • The viral ratio shows how many more customers each new customer can bring. 
  • Each of his friends is also a potential c...


1.13K reads

Innovation accounting

  • As we have already mentioned, Innovation accounting is a systematic approach to figuring out if you are making progress and getting evidence from the facts. 
  • It is an alternative to the traditional reporting system for companies operating in conditions of uncertainty. 
  • This i...


1.64K reads

“The engine of growth is the mechanism that startups use to achieve sustainable growth. I use the word sustainable to exclude all one-time activities that generate a surge of customers but have no long-term impact, such as a single advertisement or a publicity stunt that might be used to jump-sta...


1.2K reads

eric ries

“Startup success is not a consequence of good genes or being in the right place at the right time. Startup success can be engineered by following the right process, which means it can be learned, which means it can be taught.”



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1. The sticky engine of growth

  • 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.


1.34K reads

<ul><li>Instead of making comp...
  • 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...


4.58K reads

How to determine what people need without wasting time and money

  • As an entrepreneur, the core aim is to build a product or a solution to a burning problem 
  • And even though the user experience matters a lot but mainly what matters is whether your product is solving the core itch of the user...


3.51K reads

When should you make a pivot?

When should you make a pivot?

  • 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...


1.17K reads

How to get traction?

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...


1.22K reads

Startup runway

  • if a startup has a million dollars in the bank and spends $100k per month, its runway is 10 months. 
  • Based on this definition, the "runway" can be extended in two ways: by reducing costs or raising additional funding.
  • However, Eric Ries suggests defining the runway in a diffe...


1.66K reads

Five Principles of the Lean Startup:

  • 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 ne...


6.44K reads

Measure #step-2

  • "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 ...


2.1K reads

How to go into practice?

How to go into practice?

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...


3.03K reads

Build #step-1

Build #step-1

  • 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...


2.76K reads



  • A startup cannot afford to operate without a system. 
  • To be successful, a startup needs to be an adaptive organization in which processes and actions are quickly and automatically adjusted in response to reality.
  • In addition to the speed, which was mentioned above, a startup ...


1.43K reads

Learn #step-3

Learn #step-3

  • 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.
  • ...


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Do what scares perfectionists

  • 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 ...


1.94K reads



  • 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...


1.15K reads

Three stages of innovation accounting:

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.

If you are close to the ideal metrics, you need to move in the same direction....


1.61K reads

Types of MVP

Types of MVP

  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


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Cohort analysis

  • One of the most important analysis tools for a startup is Cohort analysis.
  • It may sound complicated, but it is based on one simple premise. 
  • Rather than looking at aggregate metrics such as total income and total customers, 
  • We should measure the metrics separately fo...


1.49K reads

Key aspects of Innovation Accounting

1. Effective indicators. show what needs to be done to get the results you want. They help to learn from the results of their actions. 

2. Simplicity of presentation. Reports should be presented simply and clearly. It is worth remembering indicators are th...


1.32K reads




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