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What everybody should learn from... "LEAN START UP"​ (ERIC RIES)

“If you only have a determination, brilliance, great timing and, a great product, you can achieve fame and fortune”. A related mistake is that ideas are wonderful. Generally, people have to hesitate to reveal their ideas in public. There is a constant fear that someone will steal your idea. But the truth is that an idea is never that good. During a lifetime, the average person has at least 20 astonishing ideas that could be turned into successful startups.

The reality is that execution is the most important part of this equation for success.

The Lean Startup method shows you how to run a startup, how to lead when to turn, and when to drive forward and grow a business with the most extremely increasing speed. It is a principled approach to the development of new products.

This is attempting to implement a structured approach to evaluating success at a startup. A startup has a true north, a vision thereof. It uses a plan that involves a market model, a product road map, and a view of the investors, rivals, and clients. The result is a strategic outcome. Products alter constantly (Motor tuning). Occasionally, the plan switches (pivot). In some cases, the vision improves.



The Lean Startup method takes its name from Toyota's assembling upset. Toyota transformed into a prospering worldwide organization by concentrating on the following principles:

  1. Take advantage of the knowledge and creativity of the individual worker.

  2. Decrease of bunch size

  3. Utilizing just-in-time production and stock control

  4. Accelerating process durations

This methodology featured the contrast between esteem age conduct and waste, rules that the Lean Startup method brings to the setting of business enterprise.

Ries, in this way, solidly accepts that the accomplishment of a startup isn't really about having an extraordinary idea, or even being in the right place at the right time; it is about following the right processes. The Lean Startup model is based on:

  1. Fast cycle times

  2. Concentrate on "what the client needs" (without asking first)

  3. Utilization of logical ways to deal with deciding.

In this way, the Lean Startup business model is a novel way to deal with "new product" advancement and development that centers around quick emphasis, client understanding, innovative vision, and ambition, all the while.


Innovation isn't only the worry of startup business visionaries. There are managers in large companies whose job it is to head up an initiative for another item a whole new venture, sometimes they are called intrapreneurs. As businesspeople, most managers in this setting are the visionaries. They are willing to take risks and try out new ideas and solutions to develop the venture. These intrapreneurs share a lot with entrepreneurs, and for this purpose, going ahead, we'll utilize the term entrepreneur to apply to these people too.

While we're on definitions, what is a startup? Ries gives the accompanying definition: " A startup is an institution that creates new products or services in an atmosphere of uncertainty."


The Lean Startup model has a unique idea that Reis refers to as "validated learning". This way to deal with learning is more exact, concise, and faster than conventional modes.

To comprehend what this idea implies, we should highlight which of our efforts are creating value and which are generating waste. Instead of consistently attempting to refresh and improve a product, we must determine if customers are interested in our product. Anything that does not provide value to the customer is a waste.

But how can we know what our customers value in our product? The key is to launch a low-quality early prototype of the product as quickly as possible to get real data. So, the sooner you can get data on what your customers think, the sooner you can improve your product and the less waste you’ll have in the development process. Don’t bother with interviews. Get empirical data. Do experiments — many experiments.


From the Lean Startup's viewpoint, an experiment isn't only a line of hypothetical research, it is the first version of the product.

Experiment with real products so you'll have a head start if the examination is effective. When the product is prepared for more extensive distribution, it will as of now have a center of built-up clients. Also, clients create input, so makers can gain from this for the following emphasis of the product.

In any case, before going off half-cooked there are a couple of things you have to consider. On the off chance that buyers don't think they need your product; they won't get it. What's more, regardless of whether you think they'd purchase your product, you should be fit for building it. Now and then developers want to go directly to their idea, without verifying ahead of time to check whether anybody would get it.

The Build-Measure-Learn feedback loop is crucial. You need to begin someplace, so start with the Minimal Viable Product (MVP). This is the most fundamental form that can experience the fabricate measure-learn circle. At that point, it's an ideal opportunity to assess the procedure and most likely rotate. Planning is a valuable procedure just to the extent that what's to come is unsurprising. In an unsteady and evolving world, the advantage goes to those who can pivot as the occasion requires.


1.  LEAP

The goal is to complete a feedback loop within the shortest possible cycle time.

There is not a recipe to follow; you cannot duplicate what others did and find success. You should build up a strategy that tends to your conditions. The strategies are based on assumptions. The two most important assumptions are the value hypothesis and the growth hypothesis. An entrepreneur should systematically test their assumptions, However, when a startup begins, there is no information. It's impossible to assess execution, so you ought to go with instinct. Sometimes a leap of faith is necessary, but it is essential to try these leaps of faith to the best of your ability.

Once assumptions have been tested, it’s important to get to the Build phase right away. Do this by creating a minimum viable product.

We measure to see whether we're getting anyplace with product development. We need to be certain that we're making a product that individuals will need. A good method for measuring is innovation accounting, which includes making learning achievements to follow progress. When we get feedback, we break down it to check whether we're on target with our objectives. If we aren’t, it may be time to pivot. If one of our suppositions ends up being bogus, we'll need another strategy. The advantage of the Lean Startup method is in helping startups understand that it's time to pivot sooner than they'd realize it otherwise, setting aside time and cash.

It returns to the value hypothesis and the growth hypothesis. You must see how the product makes or crushes value, just as how it makes or destroy growth. It tends to be complicated. A few efforts are profitable in the short term but ultimately value-destroying.

2.  TEST

Minimum viable products (MVP) are essential to the Lean Startup method as they facilitate the process of validated learning as quickly as possible. They are simply the quickest and most effortless way to zip through the Build-Measure-Learn feedback loop. The Build-Measure-Learn feedback loop is the fundamental basis upon which a startup grows. First, a product is built and tested in the real world, then its successes and failures are measured, and then, from the measurable data, validated learning can inform the next stage in the product’s development.

Problems with patents may make it unsafe to dispatch an MVP and possibly open advancement to competitors. In such cases, entrepreneurs will need to continue cautiously. Much of the time, nonetheless, the wealth of lessons to be learned through MVPs far exceeds the danger of thought being taken. startups usually have a hard time getting anyone to notice their efforts, let alone steal their ideas

The most important thing is to continue attempting. Investors can get restless with this experimentation; they need to get results. This is one motivation behind why through every one of these experimentations there should be measurements for data and accountability.


Reis give us with two amazing Lean Startup tools to viably measure our outcomes:

I. Innovation accounting: allows startups to objectively prove that they are using validated learning to encourage sustainable business. It works in three stages:

  1. Implement an MVP to obtain real information on the present of the company. An MVP incorporates real benchmark client data into a startup’s growth model, regardless of whether the clients don't value the MVP at present.

  2. Startups must endeavor to move towards their ideal baselines. Each activity that a startup embraces ought to be centered around improving only one of its growth drivers

  3. The decision to pivot or persevere. If the drivers of the plan of action are not improving, progress isn't being made. This would be an unmistakable pointer that the organization needs to pivot.

II. Actionable metrics: must adhere to the 3 A’s

  1. Actionable. It must show a clear cause and effect.

  2. Accessible: Reports should be as basic as possible, and as widely available as possible to guarantee that the whole group is ready.

  3. Auditable: Reports must contain verified facts. For instance, the information must be dependent on the real conduct of or connections with the clients.


If your startup needs to pivot or persevere is one of the hardest choices an entrepreneur will confront. A well-considered pivot in a new direction can help entrepreneurs move along the way to a successful business.

Reis states that when speaking with entrepreneurs who pivoted their strategies, they will consistently say that they wish they had pivoted sooner. The reasons why entrepreneurs delay pivoting is regularly triple:

  1. Vanity metrics: entrepreneurs understand data according to their desires as opposed to the real world; this, thus, implies they don't consider that change is necessary.

  2. Unclear hypotheses which make it difficult to encounter total disappointment.

  3. Many entrepreneurs are afraid of pivoting. Recognizing disappointment can be shocking for the team, and what's more, the dread of their new proposed business idea, not getting an opportunity to truly substantiate itself post-pivot is cool.

Nonetheless, the Lean Startup model methodologies pivoting as an organized type of progress which is trying out another hypothesis about the product, plan of action, or the motor of growth. This is the very heart of the Lean Startup business model. It's what makes organizations who implement the method so strong as, if they need to pivot, they have all the instruments which to do as such, with both dynamism and fearlessness.



It's not simple to make sense of which actions which activities create value and which create waste. You have to know who your clients are, what your clients need, how to listen to your clients, and how you plan to develop your business. The sooner these inquiries can be replied, the better.

Small batch sizes are better for startups. They are more productive, costs are lower, the workload is diminished. And more importantly, they abbreviate the learning cycle.

Reis states that when he works with organizations that receive a huge large-batch approach, it is regularly the situation that the group should re-try their work multiple times for every product release. This conflicts with the core principle of the Lean Startup method, which is to stop unnecessarily wasting time.

The Lean Startup method focuses on planning a hypothesis and getting an MVP on the market, using the smallest batch size possible, inside the speediest period. Small batches imply smaller inventories which in this way free up a part of warehouse space.


The engine of growth is the mechanism that startups use to achieve sustainable growth. Sustainable growth is characterized by one simple rule: New customers come from the actions of past customers.

There are four primary ways past customers drive sustainable growth: Word of mouth:  It is caused by satisfied customer’s enthusiasm for the products

  1. As a side effect of product usage: This alludes to presentation to a product, such as when a friend invites us to use a new item to use it.

  2. Through funded advertising – For this to be a source of sustainable growth, it must be being paid for out of revenue, not from investment capital.

  3. Through repeat purchases or use – For products such as subscription plans or voluntary, repeat purchases which are designed to encourage repeat buys.

Ries distinguishes three motors of growth through which an organization can become successful:

  1. The “sticky” engine of growth: This specific engine focuses on pulling in and holding clients as much as possible. The beat rate is characterized by what number of clients neglect to keep up a supported enthusiasm for the item. If the acquisition rate is higher than the churn rate, the organization will develop. The way to practical development inside this motor is to target existing clients and urge them to keep utilizing the item.

  2. The “viral” engine of growth:  This engine differs slightly from word of mouth in that viral growth is an offshoot of customers simply being exposed to a product from existing customers, without the existing customers necessarily raving about it. This engine. In this specific model, money related trade isn't a driver for development; it simply shows that clients would pay for the product. What's important is that the clients are utilizing the product, and virally spreading it.

  3. The “paid” engine of growth: In this model, the organization has two options: Either to diminish the expenses of obtaining new clients, or to build the income from each gained client. Here the emphasis is on the customer lifetime value (LTV) which takes how much a client will pay for an item over the item's life expectancy and deducts from it the item's factor costs. The remaining revenue is then invested in growth via buying advertising.

While organizations can utilize more than one motor of growth at the same time, Reis claims that successful startups are more likely to focus on one and specialize in it.


Reis says groups must find their ideal work pace since when a startup goes too fast, quality learning is overlooked.

To work more adaptively, Reis presents the "Five Whys" concept. The core of this method is to know the reality behind each failed process. It implies asking the "why" question five times, and with each iteration, you burrow deeper into the root of a problem. Nonetheless, to be compelling, the Five ought to be inquired as to why in a domain of common trust, and to guarantee this, Reis proposes that Lean Startups keep these two principles:

  • Be open-minded of all mistakes the first run through.

  • Never permit a similar mistake to be made twice


For any organization, large or small, to foster innovation, they require these three structural features:

  1. Scarce but secure resources

  2. Independent development authority

  3. A personal stake in the outcome

At the point when an organization arrives at a specific size; however, innovation can be seen to be threatening as it requires a move in activities and set up administrative frameworks that request a lot of effort. Reis, therefore, recommends that in more settled organizations, an "innovation sandbox" ought to be made which will contain any effect of the experimentation and innovation inside it, but in which the members of the startup team have full freedom. For an innovation sandbox to be viable, it must adhere to the following standards:

  1. Any group can create an experiment that only influences the sandboxed parts of the product or service.

  2. The same group must oversee the experiment from beginning to end.

  3. No experiment can run longer than the predetermined time.

  4. No experiment can influence more than the predefined number of clients.

  5. Every experiment must be assessed by 5-10 actionable metrics.

  6. Each sandbox group must utilize similar metrics to assess success.

  7. Any team driving an experiment must screen the metrics and client corporations while the test is in progress and put a prompt end to it if something catastrophic happens.

Implementing innovative and dynamic approaches can cause some initial problems; It can be helpful to prepare managers to feel worse when such systems are introduced before they start to feel better. The key is to persevere until a more innovative approach becomes the new normal.


We do a wide range of things wrong. We simply aren't very effective; we make a wide range of waste. It is anything but a matter of trying harder, but rather of taking a shot at the correct things. In some cases, teams are effective but at the wrong things. Now and then people buckle down doing an inappropriate thing. We have to examine to check that we're taking a shot at the best thing. The scientific method is the highest quality level of learning through research, and The Lean Startup development utilizes science to grow better associations.

The manager is a framework specialist where the framework is composed of people. Sometimes, people get so focused on the framework that they dismiss the human side of the condition. People are the source of innovation. You mustn't get so hung up on keeping up the framework that the association turns out to be excessively inflexible.

Furthermore, be careful with pseudoscience, trendy expression, and prevailing fashions. Stick to the method, and approach innovation logically. As extraordinary as the Lean Startup strategy seems to be, it's simply the beginning of what should be possible by applying the scientific method to innovation management.


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