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The Lean Startup – Summary

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This book provides real insight into the 21st century process oriented and feedback based systems. It applies not just for the startups but for pretty much all the work we do on daily basis. ┬áHere’s the high level summary:
Startup success can be engineered by following the process, which means it can be learned, which means it can be taught.

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. When customers ultimately communicate, through their indifference, that they don’t care about the idea, the startup fails.

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.

A core component of Lean Startup methodology is the build-measure-learn feedback loop. The first step is figuring out the problem that needs to be solved and then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible. 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.

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.

To improve entrepreneurial outcomes, and to hold entrepreneurs accountable, we need to focus on the boring stuff: how to measure progress, how to setup milestones, how to prioritize work. This requires a new kind of accounting, specific to startups.

Build measure Learn.

For the principles of the lean start up:http://theleanstartup.com/principles

 

Written by admin

July 28th, 2014 at 1:37 am

Posted in Books,Insight

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