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The Lean Startup method teaches you how to drive a startup-how to steer, when to turn, and when to persevere-and grow a business with maximum acceleration. It is a principled approach to new product development. Too many startups begin with an idea for a product that they think people want. They then spend months, sometimes years, perfecting that product without ever showing the product, even in a very rudimentary form, to the prospective customer. When they fail to reach broad uptake from customers, it is often because they never spoke to prospective customers and determined whether or not the product was interesting.
Using the Lean Startup approach, companies can create order not chaos by providing tools to test a vision continuously. By the time that product is ready to be distributed widely, it will already have established customers. Eliminate Uncertainty The lack of a tailored management process has led many a start-up or, as Ries terms them, “a human institution designed to create a new product or service under conditions of extreme uncertainty”, to abandon all process. They take a “just do it” approach that avoids all forms of management. But this is not the only option. Work Smarter not Harder The Lean Startup methodology has as a premise that every startup is a grand experiment that attempts to answer a question.
The question is not “Can this product be built? Instead, the questions are “Should this product be built? Can we build a sustainable business around this set of products and services? A core component of Lean Startup methodology is the build-measure-learn feedback loop. Once the MVP is established, a startup can work on tuning the engine. This will involve measurement and learning and must include actionable metrics that can demonstrate cause and effect question.
The startup will also utilize an investigative development method called the “Five Whys”-asking simple questions to study and solve problems along the way. When this process of measuring and learning is done correctly, it will be clear that a company is either moving the drivers of the business model or not. If not, it is a sign that it is time to pivot or make a structural course correction to test a new fundamental hypothesis about the product, strategy and engine of growth. Validated Learning Progress in manufacturing is measured by the production of high quality goods. The unit of progress for Lean Startups is validated learning-a rigorous method for demonstrating progress when one is embedded in the soil of extreme uncertainty.
Once entrepreneurs embrace validated learning, the development process can shrink substantially. Progress in manufacturing is measured by the production of high quality goods. Are Everywhere You don’t have to work in a garage to be in a startup. Is Management A startup is an institution, not just a product, so it requires management, a new kind of management specifically geared to its context. Learning Startups exist not to make stuff, make money, or serve customers. They exist to learn how to build a sustainable business. This learning can be validated scientifically, by running experiments that allow us to test each element of our vision.