The Lean Startup David W. Kralik 27 July 2016

What Is The Lean Startup Methodology? A method for developing businesses and products first proposed in 2008 by Eric Ries that can shorten the product development cycle by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and validated learning in order to meet early needs of customers and reduce market risk by avoiding spending money where the outcome is uncertain.

3 Myths About The Lean Startup Myth 1: Lean means cheap. Lean Startup try to spend as little money as possible. Truth: The Lean Startup method is not about cost, it is about speed.

3 Myths About The Lean Startup Myth 2: It won’t work for my business. It’s only for tech / web companies. Truth: Any company, regardless of industry, can use the Lean Startup methodology to reduce uncertainty about what your customers really want.

3 Myths About The Lean Startup Myth 3: It only works for small, bootstrapped companies. Truth: The Lean Startup method is used in Fortune 500 companies and in capital-intensive large scale projects.

5 Principles of The Lean Startup Entrepreneurs are everywhere Entrepreneurship is management Validated Learning Build – Measure – Learn Innovation Accounting

5 Principles of The Lean Startup Principle #1 Entrepreneurs are everywhere You don’t have to work for or launch a startup venture to be an entrepreneur. You don’t have to work in a garage to be in a startup. Anyone who works for a company that creates new products and services under conditions of extreme uncertainty is an entrepreneur. Entrepreneurship is the context in which you operate.

5 Principles of The Lean Startup Principle #2 Entrepreneurship is management Launching a new product or service is inherently risky full of uncertainty. Managing that risk and uncertainty is the job of the entrepreneur.

5 Principles of The Lean Startup Principle #3 Validated Learning Startups exist to learn how to build a sustainable business. Learning is the unit of progress. Learning can only be done by experimentation. Validated learning is the process of testing every element element the vision, to determine whether the vision is sustainable.

5 Principles of The Lean Startup Principle #4 Build – Measure – Learn The fundamental activity of a startup is to turn ideas into products or services, measure how customers respond, and then learn whether to pivot or persevere. All successful startup processes should be geared towards accelerating this feedback loop.

Accelerating Build – Measure – Learn Building Faster Minimum Viable Product Usability Tests Incremental release Just In Time Scalability Measuring Faster Customer Liaison Real Time Monitoring A/B Testing Funnel Analysis Learning Faster Five Whys Product Accountability Customer Advisory Board Avoid Vanity Metrics

5 Principles of The Lean Startup Principle #5 Innovation Accounting Focused on defining, measuring, and communicating progress so that assumptions can be validated, and the product or service moves closer towards sustainability. Differs from traditional accounting which is focused on measuring established products for sustainable products.

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