This makes the customers stick to the product and the customers generally don't leave until dissatisfied.WiFi providers use this engine to retain customers.

Sticky growth engine

The engines of growth are used to grow your startup using one or more of the three growth engines to retain customers in the long run.The three growth engines are:<ol><li>Sticky</li><li>Viral</li><li>Paid</li></ol>If you get a lot of customers but a large chunk of them churn, then the engine is not working and you need to switch it.

Growth engines

This engine focuses on "person-to-person" transmission as a consequence of normal product use. In this engine, the customers do not have to consciously spread the word for the product, instead in their normal use, they unknowingly market the product.Hotmail used this engine of growth.

Viral growth engine

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.

Build an MVP for testing the market

Build- You build a productMeasure- You test the product in the marketLearn- 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.

The build-measure-learn loop

This engine considers spending tonnes of money on acquiring customers for the long term. This engine makes the customer habituated to the product and once they have developed a taste of the product, they cannot go back. The cost involved in acquiring a customer is also known as CAC (Customer Acquisition Cost).In this engine of growth, the companies spend millions of dollars giving freebies to new customers to habituate them to the product.

Paid growth engine

Companies like Swiggy, Zomato, and Ola in India used paid growth engine to make customers for themselves. In the initial cash drain phase, they gave freebies and in the control phase, they stopped giving discounts and used their data to attract them again to the product. They took charge of the customers as it became impossible for them to turn back.

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.

Startups VS traditional businesses

One major deciding factor for a successful startup is pivoting at the right time. Startups use the build-measure-learn loop to walk toward their goal. But if they keep continuing and every time the market turned down the product, then the startup should try to pivot and take a new path with the MVP.

Pivot or persevere?

A startup's success path is full of uncertainty and their is no defined pipeline to make a startup successful. But there are some strategies used by many companies to help them grow their company. This book brings those strategies to you.

Outlines a revisionist approach to management while arguing against common perceptions about the inevitability of startup failures, explaining the importance of providing genuinely needed products and services as well as organizing a business that can adapt to continuous customer feedback.

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Business

startup

Startups

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Books

Most startups fail. But many of those failures are preventable. The Lean Startup is a new approach being adopted across the globe, changing the way companies are built and new products are launched. Eric Ries defines a startup as an organization dedicated to creating something new under conditions of extreme uncertainty. This is just as true for one person in a garage or a group of seasoned professionals in a Fortune 500 boardroom. What they have in common is a mission to penetrate that fog of uncertainty to discover a successful path to a sustainable business. The Lean Startup approach fosters companies that are both more capital efficient and that leverage human creativity more effectively. Inspired by lessons from lean manufacturing, it relies on “validated learning,” rapid scientific experimentation, as well as a number of counter-intuitive practices that shorten product development cycles, measure actual progress without resorting to vanity metrics, and learn what customers really want. It enables a company to shift directions with agility, altering plans inch by inch, minute by minute. Rather than wasting time creating elaborate business plans, The Lean Startup offers entrepreneurs—in companies of all sizes—a way to test their vision continuously, to adapt and adjust before it’s too late. Ries provides a scientific approach to creating and managing successful startups in a age when companies need to innovate more than ever.

Eric Ries is an American entrepreneur, blogger, and author of The Lean Startup, a book on the lean startup movement. He is also the author of The Startup Way, a book on modern entrepreneurial management.

Build an MVP for testing the market

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