What Is Lean Startup? Definition, Examples, Methodology, Process and Limitations


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Lean Startup Definition:

It can be defined as the ideal methodology that helps to get the actual needs of a customer and provides a frame to manufacture and sell your product. It saves an entrepreneur to invest time and efforts on the things that are not likely to click in a customer’s mind and prevents him to spend his time and money on the same.

During recent years, the Lean Startup method has become one of the best allies for self-employed and entrepreneurs in worldwide. The Lean Startup method has been developed as the Mecca of entrepreneurship, Silicon Valley, by Eric Ries. Currently, it has globalized and is already a method applicable to any business idea, although the project is not purely technology-based. In the most of the country, it has an active presence through a network of entrepreneurs who have successfully applied this methodology.


Introduction to Lean Methodology:

The word Lean refers in English to the lean, that devoid of fat or something that is slim or thin. The Lean philosophy originated in Japan as a method to increase the efficiency of processes from eliminating all that excess or waste. This philosophy introduced aspects of kaizen methodology and used with great success in the production system of Toyota, increasing quality and reducing costs.

Principle features that differentiate this philosophy from the other frameworks were mainly the design of knowledge, fast production with inventory control and acceleration of the cycle time. This allowed them to get rid of the counterbalance that did not work and put on the market models very quickly and through the response of consumers, to improve the product, through successive iterations.


Lean Business Model:

lean startup business plan is quite simple methodology. Let us discuss some important points on why start-ups need to follow lean development process.

  • Lean startup approach includes all part of an idea that you want to validate on the market: a need for a target group.
  • The first step in lean process is to create a prototype for the minimal viable product and the earlier market launch.
  • Why lean approach? To avoid having to guess the possible market answers of the startup products through sales results.
  • We talk about web analytics or data conversion in a traditional funnel Offline.
  • By doing this, you can learn the market with short cycle iterative (repetitive) that allow us to continue to insist on what works (product improvement) or abandon what does not work (SWING, change strategy to attack this market). It is the best approach for startup to understand about lean product management.

Sometimes the prototype does not receive the expected response (just no sales), and in this case, you have to a new vision, a new idea for ​​starting. This would be an executive summary I think quite faithful to the lean startup methodology.


Wiki Finance pedia - e-learning course on online Business and Startup Wikipedia Chapter - What Is Lean Startup Definition, Examples, Methodology and LimitationsLean Startup Methodology:

The book I would suggest “The Lean Startup” by Eric Ries, has led this philosophy to the field of the creation of new companies, causing a revolution, since following this method is not necessary a great investment or initial development of a product, but it can be done through a methodology and what they call the creation of the ‘Minimum Viable Product’.

This philosophy applied in the creation of enterprises is based on any person carries inside an entrepreneur and that method is suited to any type of business. It also works through a continuous learning, through constant experimentation that allows proving all the elements of the business idea. Lean startup lifecycle proposed by the author is create-measure-learn. It would be something like converting your idea into a product.  Measure what is the answer of the consumer and try to know when you are going in the right direction.

Lean Startup Methodology Example: so if you would like to bring a product to market, you would develop a prototype with the main features of your idea, with one sufficient quality and would immediately put it in circulation, to measure the response of our audience. With this feedback, you try to improvements in your product, or we would make changes to correct the course, we would measure, etc., repeating the cycle continuously.


Lean Philosophy In Your Development Process:

Why we dedicate you so much time to prepare a few days of rest and little or nothing to get our personal goals or professional? Normally when you set yourselves a target, you know more or less what you want to achieve, but you spent too much when planning and you stayed very short when measuring.

If you applied the method to read in our personal development, you should mark your goal of what you want to achieve and establish a planning of your minimum viable product. In other words, you must ask yourselves which aspects constitute the core of our actions to achieve your goal. Once identified and defined, the method tells you to launch your product walk, i.e. you will begin to work to achieve our goal.

And as soon as you start, you must begin to collect data on the evolution of your plan. I think the part of the measure is in which more often fail because you care to improve and try to cover all aspects and you forget to check if we are going in the right direction or you have to turn toward other strategies. And you failed because the measure is the most boring part of the entire process. Spend some time to measure the results. It is essential if you want to achieve the goal because it will allow you to detect if your prototype is suitable and meets your needs, or otherwise you are doing things wrong and a change of strategy can in time do it. Once you have measured can follow later implemented some new strategy and seeing the result in the medium term, either we will try to swing towards another way of doing things if we are not happy with the results.

The key to the method is in starting small, implementing new ways of doing things gradually, so it allows us to assess whether or not they are effective and swing, if necessary on the road to new strategies. In this way, we ensure that our strategy is not the most appropriate and to change to another, personal investment that we made will have been small. And on the other hand, implement changes gradually, allows us to see the results of that change.

In my case, I’m applying it in different fields with good results: in personal goals, a professional book writing and the achievement of a sporting challenge. If you want to know a little more of the subject, I recommend that you take a look at the book the Lean Startup method, which although it is focused on the creation of companies, offers many keys to be able to apply it in your personal life.


Limitations of the Lean Startup Method:

The real extent of the Lean Startup methodology is very limited. Let us see about disadvantages of lean startup methodology:

1. Only served in the newly created company: What’s with those traditional businesses in the process of reinvention? The majority of the business fabric of the country, isn’t it?

2. Only serves to companies on the Internet: I have never seen someone present costs that argue this iterative model in a company offline, you need to pay a lot of money for new products and pay for its distribution also. A waste of money, I’m afraid. Internet costs are much lower, especially if you sell digital products. In this case, the Lean Startup methodology is ideal.

The Lean Startup methodology provides a tool that simplifies the management of your idea, and method to helps entrepreneurs exploited the most of his talent, his personal fortress. It provides a working system and a checklist that facilitates decision making in the necessary order and that above all come close to what Stephen Covey (1989) was said in “The 2nd Quadrant Management”: devote the most time to the important tasks, and not to the urgent. In short, follow the criteria that the first thing is first. This is my recommendation and six more in which Covey called the seven habits of highly effective people. In my point of view, it is the best book about business and personal management that has been written till date.


  

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