Lean Startup Principles :

1. Entrepreneurs are everywhere

Lean Startup acknowledges that entrepreneurial activity exists in various industries and organizations beyond just startups. This principle emphasizes the need for systematic entrepreneurship in organizations to ensure continued innovation and growth.

2. Entrepreneurship is management

This principle views entrepreneurship not as an elusive quality, but as a discipline that can be taught, learned, and applied in a management context. It emphasizes that entrepreneurship involves the systematic testing of hypotheses and the pursuit of validated learning.

3. Validated learning

This principle is about verifying and validating assumptions, through empirical data, to ascertain whether an idea or product has market demand and viability. It emphasizes the importance of feedback loops and learning from real-world data to make informed decisions.

4. Build-Measure-Learn

This principle outlines a cyclical process where a startup constructs a product or service (build), tests it with customers (measure), and learns from the results to iterate or pivot as necessary (learn). It promotes a rapid cycle of innovation and adaptation.

5. Innovative accounting

This principle focuses on accounting in terms of learning milestones rather than financial ones. It encourages the use of metrics such as customer acquisition costs, customer lifetime value, and time-based learning milestones to assess progress and make informed decisions.

MVP (Minimum Viable Product) in Lean Startup

A Minimum Viable Product (MVP) is a version of a new product that is created with the least effort and resources possible while still offering enough value to attract early adopters and gather feedback. It's a central concept in the Lean Startup methodology, used to test hypotheses about a product's viability, gather feedback from users, and iterate on the product based on that feedback. The idea is to avoid building an elaborate product before validating the core idea and value proposition.

Lean Startup Core

At the core of Lean Startup is the emphasis on rapid, iterative cycles of product development and testing. It's about validating hypotheses, learning from real-world feedback, and making evidence-based decisions. The Build-Measure-Learn feedback loop is the essence of Lean Startup, driving continuous innovation and improvement.

Lean Startup and Agile Methodology

The Lean Startup and Agile Methodologies are complementary approaches, both emphasizing iterative development and continuous improvement. While Lean Startup focuses on validating hypotheses and learning from customer feedback to build better products, Agile is more about delivering value incrementally and responding to change. In a sense, Agile is a broader framework that encompasses Lean Startup principles but also applies to a wider range of projects and teams.

Lets Understand with an example

Imagine Harsh has an idea for a mobile app that helps users track their daily water intake. He believes it will encourage people to stay hydrated and improve their health. Rather than building a full-featured app right away, he decides to adopt the Lean Startup methodology.

1. Entrepreneurs are everywhere

Harsh works for a software company but sees himself as an entrepreneur within that context, constantly seeking new ways to innovate and improve processes.

2. Entrepreneurship is management

This principle views entrepreneurship not as an elusive quality, but as a discipline that can be taught, learned, and applied in a management context. It emphasizes that entrepreneurship involves the systematic testing of hypotheses and the pursuit of validated learning.

3. Validated learning

This principle is about verifying and validating assumptions, through empirical data, to ascertain whether an idea or product has market demand and viability. It emphasizes the importance of feedback loops and learning from real-world data to make informed decisions.

4. Build-Measure-Learn

This principle outlines a cyclical process where a startup constructs a product or service (build), tests it with customers (measure), and learns from the results to iterate or pivot as necessary (learn). It promotes a rapid cycle of innovation and adaptation.

5. Innovative accounting

This principle focuses on accounting in terms of learning milestones rather than financial ones. It encourages the use of metrics such as customer acquisition costs, customer lifetime value, and time-based learning milestones to assess progress and make informed decisions.

Hope this was helpful! There's more to explore! Learn about Minimum-Viable-Product-In-Startup-Development here.