Lean Startup | Eric Ries | Discovering Lean

Lean Startup – Eric Ries

Seeking to identify the reasons for his failures and to find ways to avoid them, Eric ends up formalizing a method as a solution.
Eric explains the principles of lean startup with anecdotes of business success and failure.

He deduces several principles such as:

The importance of starting from the customer and not the product.

Follow an iterative approach instead of a linear approach to a project.

Adopt a process that will allow you to accept the inherent uncertainty of a project.

What to remember from Lean

1. Start-up companies should focus on management, processes and discipline.

2. Start-ups should develop a feedback loop on building metrics. Companies should develop a PVM to test market hypotheses. A PVM (minimum value product) is a product that lacks certain features because it is developed in a short time with little effort. With the PVM, young people can know the customers’ reaction to the product. Startups should test the riskiest hypothesis first.

3. Cohort analysis, which studies the behavior of independent customer segments towards a product, is found to be more meaningful than other forms of line charts.

4. If something goes wrong, entrepreneurs should ask three questions: Why? When ? How ? check link (In order to analyze root causes) to find appropriate solutions.

5. Instead of using vanity metrics, one should study metrics that can be used. Vanity metrics waste your time satisfying yourself without providing meaningful analysis.

Conclusion

Lean Startup is designed for any start-up or company that must manage uncertainty. The fundamental principle of Lean Startup is that the faster you learn, the faster you succeed. And the only way to learn is to get your product or service in front of real paying customers.

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