The goal of a startup is to figure out the right thing to build—the thing customers want and will pay for—as quickly as possible. In other words, the Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time. (Location 271)

‘I’m going to build it.’ Instead, I try to push my team to first answer four questions: Do consumers recognize that they have the problem you are trying to solve? If there was a solution, would they buy it? Would they buy it from us? Can we build a solution for that problem?” (Location 843)

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. (Location 1415)

By contrast, a marketplace company that matches buyers and sellers such as eBay will have a different growth model. Its success depends primarily on the network effects that make it the premier destination for both buyers and sellers to transact business. Sellers want the marketplace with the highest number of potential customers. Buyers want the marketplace with the most competition among sellers, which leads to the greatest availability of products and the lowest prices. (In economics, this sometimes is called supply-side increasing returns and demand-side increasing returns.) For this kind of startup, the important thing to measure is that the network effects are working, as evidenced by the high retention rate of new buyers and sellers. If people stick with the product with very little attrition, the marketplace will grow no matter how the company acquires new customers. The growth curve will look like a compounding interest table, with the rate of growth depending on the “interest rate” of new customers coming to the product. Though these two businesses have very different drivers of growth, we can still use a common framework (Location 1505)

Those familiar with the technology life cycle ideas of theorists such as Geoffrey Moore know certain later-stage pivots by the names he has given them: the Chasm, the Tornado, the Bowling Alley. Readers of the disruptive innovation literature spearheaded by Harvard’s Clayton Christensen will be familiar with established companies that fail to pivot when they should. The critical skill for managers today is to match those theories to their present situation so that they apply the right advice at the right time. (Location 2322)

The father won the race, and not just because he is an adult. It happened because the one envelope at a time approach is a faster way of getting the job done even though it seems inefficient. This has been confirmed in many studies, including one that was recorded on video.1 The one envelope at a time approach is called “single-piece flow” in lean manufacturing. (Location 2383)

The ability to learn faster from customers is the essential competitive advantage that startups must possess. (Location 2496)

As one of my mentors, the venture capital investor Shawn Carolan, put it, “Startups don’t starve; they drown.” There are always a zillion new ideas about how to make the product better floating around, but the hard truth is that most of those ideas make a difference only at the margins. They are mere optimizations. Startups have to focus on the big experiments that lead to validated learning. The engines of growth framework helps them stay focused on the metrics that matter. (Location 2712)

Often, individual contributors at startups come to my workshops, eager to get started with the Five Whys. I caution against attempting to do that if they do not have the buy-in of the manager or team leader. Proceed cautiously if you find yourself in this situation. It may not be possible to get the entire team together for a true Five Whys inquiry, but you can always follow the simple two-rule version in your own work. Whenever something goes wrong, ask yourself: How could I prevent myself from being in this situation ever again? (Location 3085)

use lean techniques such as the Five Whys and small batches. (Location 3280)

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