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The “Lean Startup” is a concept developed and materialized by Eric Ries in his book The Lean Startup. While the philosophy is relatively new, the tenets of a “Lean Startup” have been in practice for quite some time. Toyota, for example, implements many of the principles of a “Lean Startup” by minimizing wasteful use of resources in manufacturing, and has been doing so long before The Lean Startup was published. At the core of the “Lean Startup” methodology is sorting out bad ideas, or products with no market, by using customer development to avoid uncertainty.
Lean Startups are just what they sound like: a lean and mean athlete is efficient and powerful. With a Lean business, all resources are dedicated to solving the problems of consumers, as a top priority. There is a wealth of information on how to accomplish this “Lean Startup” method but here are a few highlights on how to implement it with your business.
Will “Lean Startup” Work for You?
The answer is more than likely: yes! And if not the whole process, then parts of it can be applied to your business. The “Lean Startup” method applies to more than just online businesses but also any entrepreneurial effort, including other small businesses and all the way up to large companies. Apple and Facebook are two well-known examples of big businesses that use many of the same strategies that make up a “Lean Startup”.
Build-Measure-Learn Loop
The “Lean Startup” method operates in a loop of Build, Measure and Learn. The aim is to accelerate the process for agile companies, in a way traditional corporations have trouble doing. This utilizes the limited resources of small or emerging business into their advantage, as wasted resources and time are kept to an absolute minimum. Many great businesses have started with the spark of a great idea. Many other businesses have sunk from these same assumptions and ideas. The “Lean Startup” embraces these moments of inspiration and harnesses them into a system of testing and using cost-effective 21st Century abilities to produce prototypes and beta versions, ready for market.
Customer Development
Pivoting is an essential part of the “Lean Startup” model as it allows a business to use the market information and customer development process to validate a change to how your business is executed. Keep the processes/aspects that work, as your anchor. Then, change what parts don't work and need to be changed. The key here is not so much the pivot, but the validating of pivoting your business towards success. You should aim for qualitative and quantitative market feedback.
http://leanstartup.pbworks.com/w/page/36786240/Misconceptions-about-Lean-Startup
Scale
When Facebook launched, it faced stiff competition. Where is the competition now? Facebook is leaps and bounds ahead of the nearest social networking competitor. So, how did they do it? By starting small (Harvard only) and scaling rapidly. If guided by customer development and kept agile, the next step to the “Lean Startup” method is to then translate successes by scaling quickly. Before you know it, you have products and companies competing with large corporations. This only works within the Build-Measure-Learn loop that ensures new ideas are tested and verified.