Understand the Lean Startup
Lean Startup is a methodology used to develop new business ideas in a much more efficient and quick way than traditional businesses. The application of its main principles can massively lower the risk of launching a new product or service, and maximize its success over time. Overall, this approach relies on three pillars: The Business Model Canvas, Customer Development, and Agile Methodology.
Business Model Canvas
This tool can be used as a faster and more efficient substitute for the traditional business plan. Traditionally, emerging businesses would spend years researching, planning, and writing down a long and detailed business plan. Unfortunately, after all the hard work, they would often realize too late and the hard way that the customers were not interested. As a solution to this sad and risky scenario, it is now possible to use the business model canvas. This tool provides a quick, intuitive and complete framework to develop hypotheses around new business ideas and get feedback.
Customer Development
It is the second fundamental principle for building a lean startup. This is because, as mentioned above, this methodology relies heavily on continuous customer feedback. With this approach, businesses can start testing their hypothesis to always keep learning from the results and adjust accordingly. Later in this course, our expert will explain how customer development differs from traditional product development.
Agile Methodology
The third and final principle of the lean startup approach is the Agile Methodology. This concept aims at reducing all the wasted time and resources that can often be very costly in traditional business development. Instead, agile development suggests following the Build-Measure-Learn cycle, which consists of developing a new service or product incrementally and iteratively. Later in the course, our expert will explain this concept further with the use of practical examples.
When & Why to Apply the lean startup approach?
The benefits that can be derived from applying this methodology can be numerous for a wide range of businesses. As a matter of fact, not only has this approach been shaping the entrepreneurial landscape, but it has also been implemented by bigger corporations for the development of new products or services. This suggests that any business at any time can in fact apply the lean startup methodology and benefit from it.
As mentioned above, the lean startup approach can be applied by a wide range of businesses. However, an early-age startup or even just an individual with a business idea is probably who needs this approach the most. For instance, keeping the development of the business tied to the customers’ feedback, can massively reduce risk and maximize success. Hence, there will be very low to zero waste of resources and time, which are very precious, especially for an early-stage startup. Overall, all these benefits can really support the creation of an innovative, flexible, and successful startup that truly satisfies its customers’ needs.
