Lean Startup? Does it Really Work?
What does it mean to build a Lean Startup ?
Gone are days when someone or a group of people would gather together in a building and decide to produce a given commodity. Perhaps because they think they know what the customer wants due to limited resources. Today that strategy is not as effective as it once was.
Lean Startup methodology discovered by Eric Reis, serves to work as a more effective way than the old approach. The method deploys scientific ways and instructions on how to make and manage new businesses. It will enable you to produce a commodity that customers will find perfect for their needs. The lean startup defines a period for a business or a product to grow. This is achieved by following the direction the approach provides.
Unlike in the former days, when individuals used to produce a commodity blindly. And then start spending months or even years perfecting it when they would fail to reach the desired point or level in the market. In the later, the producers are directed to start by inquiring from the prospective customers estimated to be their customers. They first find if the commodity they are about to produce will fit their needs and interest. And if they find the product is not such required, or there are specific preferences and tastes that customers require. The producer goes back and works to meet the requirements. After the requirements are met the product will be released to the market having been produced by the customers’ desires.
The lean startup principles work by researching on the business model. To find a model that will work basing its finding on concrete evidence from the prospected customers. Not a model that will be assumed to work and be supplemented after it has failed to work.
The question whether the ideas works or not has a much-defined answer. The lean startup has been seen work, and currently, it is the most effective methodology to use in any startup. In the US there are many Lean Startup success organizations. To mention just but a few, Alexander Osterwalder and the Steve Blank are the business organization in which this approach has worked. These are the products of this Eric Reis Lean startup process in 2008. The two organizations never assumed that after they would establish the businesses, the full customer would just come. Instead, they had searched feedbacks from customers about their products. Deployed interaction with customers about the development of their products, and had died many experiments to value their planning until they had found good results.
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Apparently, it is evident that the Lean Startup methodology has totally overpowered business plans. This is not majorly because the approach is cheap as compared to other approaches. In fact, know that cheap is also expensive. If you consider starting up any business, assuming without any customer interactions and experiments on the market. That starting process looks cheap as compared to going out interacting with customers and taking into considering their views. Comparatively after establishing the business, if you had used the lean startup approach which in this case is expensive. The business will take a short period to grow, but if there is no research which was conducted, the business will take a long time to grow or even it never grows. Thus becoming expensive to you.
In this century, it is important for the young people to involve themselves in business. This is because they are the ones with fresh ideas and who can embrace the technological race we are experiencing. Especially for those who are from western countries, it is important that you clinch to Lean Startup entrepreneurship. The process and the principles of the lean startup can power your small business or make your business idea a very big business. Up to servicing many customers as it cannot be thought by many, thus you can reach the high levels as the likes of Bill Gate are today. Below are three means in which you can get your business big, serving millions of customers.
Bear out your assumptions to alleviate risk
So far we have seen that the prime reason why the business organizations established using the old and assumptive approach fail to work. It is because the former just looks on the ways of producing the product. Contrary, the lean startup first looks on the responses of the prospective customers on the commodity to be produced.
Therefore, first compile all the assumption and facts you think about the product. Including the cost of the product and the different styles, you will use to have your customer get the commodity. After, all that now get out and experiment your idea as if it a real business. And don’t forget to get and record the customer’s views. At the moment, you will be through with the experimental test you should have got the real idea and how you would produce the commodity. These would guarantee you a first growing business.
Interact with customers
It is evident that looking and judging your business idea from your perspective will make your business take long to grow or even make it stagnant in that poor performance level. Therefore, if you are thinking of a certain business idea, get out and reach your market before implementing. Ask them what they think of it.
Have a sample for the market first
We have seen that using your resources in the development of the business organization to fully. And producing large quantities to the market before having your product tested may never give you all you need from that business. Thus it good to have the sample to the market first and get its feedback.
From the above, we can say that Lean Startup is advantageous. It is capital efficient and effective. It guarantees continuous growth of the business and starts with a good number of sure customers. Also, it is customer-involving in value determination.