Source - https://hbr.org/2013/05/why-the-lean-start-up-changes-everything
TL;DR - The lean startup principles serve as a guide for founders to increase the efficiency of their business decisions.
Helpfulness - 5
Tags - lean startup, customer development, hypotheses, agile development,
- What are the lean startup principles?
- Why was the lean startup methodology developed?
- Research by HBS shows that 75% of startups fail.
- The methodology known as “lean startup” allegedly makes the process of starting a company less risky.
- Lean startup favors experimentation over elaborate planning, customer feedback over intuition, and iterative design over traditional “big design up front” development.
- Its principles include failing fast and continually learning.
- Business plans and forecasts require a lot of assumptions that don’t hold up upon contact with customers.
- Startups that succeed fail quickly and often, and adapt.
- Lean definition of a start-up: a temporary organization designed to search for a repeatable and scalable business model.
- Three principles:
- Before committing to months of research/planning, founders compile their hypothesis in a business model canvas.
- Customer development: rapidly develop MVPs and quickly get customer feedback; repeat process with new data.
- Agile development: develop product iteratively and incrementally to prevent wasted time.
- Methodology values customer feedback over secrecy.
- Open source software (GitHub) and cloud technology (AWS) have dramatically reduced software development costs.
- Widespread adoption of lean startup principles could have a notable effect on overall efficiency, and impact GDP and employment.