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.
MORE IDEAS FROM The Lean Startup
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.
Startups operate in an environment of extreme uncertainty, and this must be taken into account when launching it. At the initial stage of development, a startup needs to remain flexible to learn from mistakes and test the founders' hypotheses as quickly as possible, which means that it is necessary to avoid large investments and costs. This is the heart of Lean, aiming to help entrepreneurs improve a startup's chances of success.
• Find a business model that works through validation.
• Use split testing to tell value from waste.
• Never ever indulge in vanity metrics.
As you consider building your own minimum viable product, let this simple rule suffice: remove any feature, process, or effort that does not contribute directly to the learning you seek.
The only way to win is to learn faster than anyone else.
“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.”
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.
Agile project management is a methodology that uses short development cycles called “sprints” to focus on continuous improvement in the development of a product or service.
This new way of managing projects that grew out of Agile software development has become the standard and for very good reasons.
❤️ Brainstash Inc.