No More Doubt or Problems Understanding Lean Entrepreneurship
Ever since Silicon Valley (Steve Blank, Alexander Osterwalder, Eric Ries, Bill Aulet and others) gave us the evidence-based or lean startup as a more certain validation method to build a new startup, folks have had trouble understanding the concept. Well, no more. Two new publications have taken care of any gaps:
1. The Growth Hackers Ultimate Definition re-printed below and
2. The new Lean Entrepreneurship Chart, a summary of all 15 methods.
The latter will be published this month after introduction at the annual USASBE Conference in St. Petersburg, FL 23-26 January. USASBE is the largest organization of entrepreneurship education hosting over 540 scholars and instructors.
By the end of February it will be available on Amazon.com under lean entrepreneurship chart or author page Clinton E. Day: https://www.amazon.com/Clinton-E.- Day/e/B017UZNIBK%3Fref= dbs_a_mng_rwt_scns_share
Growth Hackers ultimate definition (by CEO, Co-Founder Jonathan Aufray):
If you are in the startup world, I am pretty sure you’ve heard about lean startup. This is a common method used by startups but it’s often misunderstood by entrepreneurs. This is why, today, I want to give you the ‘ultimate’ lean startup definition. I’ve already given you the growth hacking definition and the inbound marketing definition: now, it’s the turn to lean startup to be defined.
If a business owner wishes to create successful company and product, their key task is reducing different risks. Entrepreneurship is definitely a risky business and as such, one of the primary missions of the entrepreneurs is to systematically and gradually get rid of the risks. The key in this is that whenever developing a product, entrepreneurs focus on the largest risks first.
As what’s mentioned before, the largest risk is the newly founded companies are rarely the manufacture of the solution or product. With today’s times of cheap manufacture, entrepreneurs can be very fast to make a product with enough effort, money, and time.
The biggest risk for the entrepreneurs is that they will create a product that nobody likes to purchase. When entrepreneurs are just starting, they only have a hunch regarding the problem that potential clients face, a suitable solution as well as even the logical customer segment.
Since they’re only the hunches of entrepreneurs, creating a solution very quickly, and choosing the customer segment or the entire business model very early can lead to failure. A solid strategy, good plan, and implementation of marketing plans seem like the right strategy at first because these are the things that big companies have. However, applying such traditional tools to the newly created companies do not make sense because the latter face uncertainty.
The bigger the uncertainties are, the more difficult it is in predicting the future. That is the reason why planning can be exact when it is based on a stable, long history of the startup in a relatively stable surrounding that does not apply to newly created or established companies.
If the entrepreneurs build products that nobody would want to purchase, this makes no difference if it is made on schedule as well as with planned resources. This statement indicates the fact that the basic task of entrepreneurs is learning which product to make at all and that’s the product for which customers are prepared to pay and in short possible time. As the solution to quick and complex changes in the environment, the new method of building a new company developed known as lean startup.
Lean startup is the new look on the development of innovative products, which emphasize fast iterations of product development that is based on the new insights to the wishes of customers and including big visions or high ambitions of the business team at the same time.
In today’s economy, the question “can it be built?” is not crucial anymore for the reason that nearly any product may be created since there are sufficient means of the production are available. More important questions in modern economy are whether a particular product must be built and whether it’s possible to build long-term sustainable business model around the products.
Manufacture capacities of the developed countries are bigger and more developed compared to the knowledge of what the market really wants. With the manufacturing capacities reaching the point where you can manufacture nearly anything you can think of, the question of whether you can make new services or products are not in the foreground anymore, yet instead whether this makes sense to build this and if it’s profitable.
For every lean startup, this is necessary that they let go as soon as possible of wrong assumptions that they can describe history exactly, even more exactly plan or predict the future and co-create this. What must come to the forefront is the realization that the entrepreneur’s assumptions or the business team regarding the market, the customers and their problems are very wrong and only through trying, discovering, and measuring patterns with scientific method can these be true.
The history of the successful startups in the modern times teaches everyone that by far the most essential factor for the business success of established and new companies is a desire for verifying assumptions in the market, testing, and learning based on the small failures and looking at the problem’s right combination that brings the final huge success.
Customers are what make the product into a success story. Without customers who are ready to purchase the products, it is not essential how innovative ideas are or how affordable the product is because the company will surely fail. With this, there’s an important realization that bigger uncertainties do not do only bring challenges and disadvantages to long-term business planning. Bigger uncertainties are also chances because innovation and uncertainty go hand in hand.
Without the first, there’s no opportunity for the second. The disruptive innovations may happen in an environment where final products, marketing, value offers, prices, and sales channels are at most informed guesswork, yet more like a complete unknown.
Now that you got a quick introduction, it’s time to give you the lean startup definition…Let’s define lean startup: lean startup offers a scientific approach to managing and creating startups and acquires the desired product to the hands of the customer faster. The method of lean startup teaches you how to drive the startup, when to turn, how to steer, and when to persevere and grow businesses with optimum acceleration. This is a principled approach to a new product development.
A lot of startups start with an idea for products that they think people like. Then, they spend months or years perfecting the product without showing the product even in very rudimentary form to the potential clients. Once they fail to reach broad uptake from the customers, it’s often due to the reason that they don’t speak to prospective clients as well as determined whether or not the product was exceptional. When the customers communicate ultimately, through their indifference, that they do not care about the idea, the startups fail.
More on https://www.growth-hackers.net/lean-startup-definition/