Lean Startup Methodology introduces a process of starting a company in a less risky way.
Lean start-up favors
- experimentation over elaborate planning,
- customer feedback over intuition, and
- iterative design over traditional “big design up front” development.
Two of it’s main concepts are:
- Two of it’s main concepts are:
- Delivering fast “minimum viable product”
- “pivoting” fast as soon as failure is realized
After decades of watching thousands of start-ups follow this standard regimen, Steve Blank and his collogues have learned at least three things:
1. Business plans rarely survive first contact with customers. As the boxer Mike Tyson once said about his opponents’ prefight strategies: “Everybody has a plan until they get punched in the mouth.”
2. No one besides venture capitalists and the late Soviet Union requires five-year plans to forecast complete unknowns. These plans are generally fiction, and dreaming them up is almost always a waste of time.
3. Start-ups are not smaller versions of large companies. They do not unfold in accordance with master plans. The ones that ultimately succeed go quickly from failure to failure, all the while adapting, iterating on, and improving their initial ideas as they continually learn from customers.
It shapes the lean definition of a start-up: a temporary organization designed to search for a repeatable and scalable business model.
The lean method has three key principles:
First, rather than engaging in months of planning and research, entrepreneurs accept that all they have on day one is a series of untested hypotheses—basically, good guesses. So instead of writing an intricate business plan, founders summarize their hypotheses in a framework called a business model canvas.
Second, lean start-ups use a “get out of the building” approach called customer development to test their hypotheses. They go out and ask potential users, purchasers, and partners for feedback on all elements of the business model, including product features, pricing, distribution channels, and affordable customer acquisition strategies. The emphasis is on nimbleness and speed: New ventures rapidly assemble minimum viable products and immediately elicit customer feedback. Then, using customers’ input to revise their assumptions, they start the cycle over again, testing redesigned offerings and making further small adjustments (iterations) or more substantive ones (pivots) to ideas that aren’t working. That’s why this website is built with Google-Ad features and potential customer’s feedback is collected here.
Third, lean start-ups practice something called agile development, which originated in the software industry. Agile development works hand-in-hand with customer development. Unlike typical yearlong product development cycles that presuppose knowledge of customers’ problems and product needs, agile development eliminates wasted time and resources by developing the product iteratively and incrementally. It’s the process by which start-ups create the minimum viable products they test. Dr. Emari is in fact both a Lean expert and a PMI Discipline Agile Scrum Master Certified professional and understands and coaches teams on the LEAN Agile IPD QPMO Methodology.
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