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Description of Lean Startup

"For those of you who havent read theLean Startup by Eric Ries, the basic concept behind it is that

we have been going about the startup process all wrong.

Instead of writing long business plans, raising early funding, and building initial prototypes over the

course of a year, we need to foster startups that constantly learn and iterate around a minimal viable

product.

By constantly tweaking, or occasionally pivoting the product, service, and business model in response

to early customer feedback, startups can improve their likelihood of success or at least fail faster and

cheaper."http://www.fastcoexist.com/1680269/smart-cities-should-be-more-like-lean-startups

IntroductionLean Startupdraws upon methods originally developed tominimise waste in manufacturing processesand

applies a continual-learning mindset to start-ups, growing businesses, and to intrapreneurship.

It is not a prescriptive set of answers, rather a framework for thinking through how to creating something

new under conditions of extreme uncertainty, with the primary goal being minimising 'time to learning'. I.e.

get into the marketplace as quickly as possible, and get feedback from potential customers in order to

"Build--Measure--Learn" in an iterative loop. It is a way to harness the energy of young businesses into small,

practical steps and create immediate feedback and momentum.

A 'minimal viable product' is often the most basic product offering that can be put together - in order gainfeedback from users and test the market. Ideas are less important than the ability to execute on them.

A 'pivot' is what to consider when market feedback suggests there is not a sustainable business model based

on the initial value proposition. In basketball, a player can change direction by keeping one foot on the

ground, and moving the other; in Lean Startup parlance, a pivot means keeping in mind the vision for the

business, and moving to a new way to realise that vision ("a structured course correction designed to test a

new fundamental hypothesis about the product, strategy, andengine of growth",according to Eric Ries).

In many ways, using the Lean Startup approach is about building a 'machine' which continually tests the

educated guesses you have about your business, in order to find a sustainable customer base, market

offering, and profitable business model. This is in contrast to the build it and they will come model.

Customer Development and Business Model Generation

The Lean Startup is usually considered in conjunction with two other bodies of knowledge - aroundfinding

customers, and also creating theprofitable business modelabove.Steve Blank, who invested in a business

Eric Ries co-founded, is a successful tech entrepreneur who lectures about how to create successful startup

businesses.

Steve's model, commonly known as 'Customer Development' implores business founders to regularly meet

their customers in order to create a product these customers want to buy, rather than that which the

http://theleanstartup.com/http://theleanstartup.com/http://www.fastcoexist.com/1680269/smart-cities-should-be-more-like-lean-startupshttp://www.fastcoexist.com/1680269/smart-cities-should-be-more-like-lean-startupshttp://www.fastcoexist.com/1680269/smart-cities-should-be-more-like-lean-startupshttp://startuplessonslearned.com/http://startuplessonslearned.com/http://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Intrapreneurshiphttp://en.wikipedia.org/wiki/Intrapreneurshiphttp://en.wikipedia.org/wiki/Intrapreneurshiphttp://lean.st/principles/build-measure-learnhttp://lean.st/principles/build-measure-learnhttp://lean.st/principles/build-measure-learnhttp://www.startuplessonslearned.com/2009/08/minimum-viable-product-guide.htmlhttp://www.startuplessonslearned.com/2009/08/minimum-viable-product-guide.htmlhttp://www.startuplessonslearned.com/2009/08/minimum-viable-product-guide.htmlhttp://www.startuplessonslearned.com/2009/06/pivot-dont-jump-to-new-vision.htmlhttp://www.startuplessonslearned.com/2009/06/pivot-dont-jump-to-new-vision.htmlhttp://www.startuplessonslearned.com/2009/06/pivot-dont-jump-to-new-vision.htmlhttp://www.startuplessonslearned.com/2008/09/three-drivers-of-growth-for-your.htmlhttp://www.startuplessonslearned.com/2008/09/three-drivers-of-growth-for-your.htmlhttp://theleanstartup.com/principleshttp://theleanstartup.com/principleshttp://theleanstartup.com/principleshttp://www.startuplessonslearned.com/2008/11/what-is-customer-development.htmlhttp://www.startuplessonslearned.com/2008/11/what-is-customer-development.htmlhttp://www.startuplessonslearned.com/2008/11/what-is-customer-development.htmlhttp://www.startuplessonslearned.com/2008/11/what-is-customer-development.htmlhttp://www.businessmodelgeneration.com/http://www.businessmodelgeneration.com/http://www.businessmodelgeneration.com/http://steveblank.com/http://steveblank.com/http://steveblank.com/http://custdev.com/http://custdev.com/http://custdev.com/http://custdev.com/http://steveblank.com/http://www.businessmodelgeneration.com/http://www.startuplessonslearned.com/2008/11/what-is-customer-development.htmlhttp://www.startuplessonslearned.com/2008/11/what-is-customer-development.htmlhttp://theleanstartup.com/principleshttp://www.startuplessonslearned.com/2008/09/three-drivers-of-growth-for-your.htmlhttp://www.startuplessonslearned.com/2009/06/pivot-dont-jump-to-new-vision.htmlhttp://www.startuplessonslearned.com/2009/08/minimum-viable-product-guide.htmlhttp://lean.st/principles/build-measure-learnhttp://en.wikipedia.org/wiki/Intrapreneurshiphttp://en.wikipedia.org/wiki/Lean_manufacturinghttp://startuplessonslearned.com/http://www.fastcoexist.com/1680269/smart-cities-should-be-more-like-lean-startupshttp://theleanstartup.com/

7/31/2019 Description of Lean Startup for Scribd v0.2

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founders wish to sell. Direct and regular feedback, in person, gives founders the prompts and genuine

learning to create solutions which solve pressing customer needs.

Steve advocates doing this work upfront and starting small, rather than developing expensive full-service

offerings, and details several very expensive failures from the dot com bust. Customer development aims to

create 'product/market fit' (a term popularised by Marc Andreesen of Netscape fame and now a VC).

Product/market fit means providing something that customers want to buy - which is 'pulled' by customer

needs, rather than 'pushed' by expensive marketing. Steve is the author of two books on customer

development, and a major advocate of Business Model Generation, a concept coined byAlexander

Osterwalder.

Business model generationis a book and approach which divides any business into nine components, and

presents a series of questions and case studies to help readers clarify their own thinking, and review and

iterate a way to make money. There is also an additional 'plug in' which helps to clarify the value proposition

businesses (and other organisations) have or could offer. I have also come across a canvas forservice modelgeneration, and in a similar vein, there is a book called Business Model You to help individuals clarify their

own career path.Dave McClures AARRR for Pirates sets out metrics for entrepreneurs.

ConclusionTaken together, these elements provide a framework for early stage businesses, those innovating inside

established organisations, and those who wish to innovate under conditions of uncertainty. It also provides a

vocabulary, a body of knowledge, and a community of innovators to help test new ideas and share the

practical lessons.

This is, necessarily, a potted summary of the potential offered by this material. I hope the embedded links

and resources below provide a prompt to help minimise waste and speed up time to learning!

Selected Resources Books (on Amazon)

o The Lean Startupo Startup Owners Manualo Business Model Generationo

Running Leanby Ash Maurya Educational material

o Lean Startup Day at SXSWo Lean Launchpad courseo Leancampo Lean Startup Machine

Videoso Evangelizing for the Lean Startup

Podcastso Eric Ries at the LSEo Podcast #115 Eric Ries

(@ericries), The #LeanStartup

o Ash Maurya - Running Leano Steve Blanko Alex Osterwalder

Toolso

Lean Canvaso Canvanizero Strategyzero Lean Launch Lab

Blogso Eric Rieso Steve Blanko Alex Osterwaldero Andrew Cheno Startup Marketing Blogo Market By Numberso Patrick Vlaskovits

http://pmarca-archive.posterous.com/the-pmarca-guide-to-startups-part-4-the-onlyhttp://pmarca-archive.posterous.com/the-pmarca-guide-to-startups-part-4-the-onlyhttp://pmarca-archive.posterous.com/the-pmarca-guide-to-startups-part-4-the-onlyhttp://www.businessmodelalchemist.com/2012/09http://www.businessmodelalchemist.com/2012/09http://www.businessmodelalchemist.com/2012/09http://www.businessmodelalchemist.com/2012/09http://www.businessmodelgeneration.com/http://www.businessmodelgeneration.com/http://www.businessmodelalchemist.com/2012/09http://www.businessmodelalchemist.com/2012/09http://www.businessmodelalchemist.com/2012/09http://service360partners.com/b2c-service/service-model-generation/http://service360partners.com/b2c-service/service-model-generation/http://service360partners.com/b2c-service/service-model-generation/http://service360partners.com/b2c-service/service-model-generation/http://500hats.com/http://500hats.com/http://500hats.com/http://igniteshow.com/videos/startup-metrics-pirates-aarrrhttp://igniteshow.com/videos/startup-metrics-pirates-aarrrhttp://igniteshow.com/videos/startup-metrics-pirates-aarrrhttp://www.amazon.co.uk/gp/product/0670921602/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=0670921602&linkCode=as2&tag=wellpersblogo-21http://www.amazon.co.uk/gp/product/0670921602/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=0670921602&linkCode=as2&tag=wellpersblogo-21http://ttp//www.amazon.co.uk/gp/product/0984999302/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=0984999302&linkCode=as2&tag=wellpersblogo-21http://ttp//www.amazon.co.uk/gp/product/0984999302/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=0984999302&linkCode=as2&tag=wellpersblogo-21http://www.amazon.co.uk/gp/product/0470876417/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=0470876417&linkCode=as2&tag=wellpersblogo-21http://www.amazon.co.uk/gp/product/0470876417/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=0470876417&linkCode=as2&tag=wellpersblogo-21http://www.amazon.co.uk/gp/product/1449305172/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=1449305172&linkCode=as2&tag=wellpersblogo-21http://www.amazon.co.uk/gp/product/1449305172/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=1449305172&linkCode=as2&tag=wellpersblogo-21http://www.udemy.com/lean-startup-sxsw-2012-videos-and-presentations/http://www.udemy.com/lean-startup-sxsw-2012-videos-and-presentations/http://steveblank.com/2012/09/06/the-lean-launchpad-online/http://steveblank.com/2012/09/06/the-lean-launchpad-online/http://leanca.mp/http://leanca.mp/http://leanstartupmachine.com/http://leanstartupmachine.com/http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2329http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2329http://www2.lse.ac.uk/publicEvents/events/2012/01/20120112t1830vSZT.aspxhttp://www2.lse.ac.uk/publicEvents/events/2012/01/20120112t1830vSZT.aspxhttp://www.leanblog.org/2011/03/podcast-115-eric-ries-ericries-the-leanstartup/http://www.leanblog.org/2011/03/podcast-115-eric-ries-ericries-the-leanstartup/http://www.leanblog.org/2011/03/podcast-115-eric-ries-ericries-the-leanstartup/http://www.leanblog.org/2011/03/podcast-115-eric-ries-ericries-the-leanstartup/http://www.leanblog.org/2011/03/podcast-115-eric-ries-ericries-the-leanstartup/http://www.leanblog.org/2011/03/podcast-115-eric-ries-ericries-the-leanstartup/http://www.leanblog.org/2011/03/podcast-115-eric-ries-ericries-the-leanstartup/http://startupsuccesspodcast.com/2012/09/153-show-107-ash-maurya-author-of-running-lean/http://startupsuccesspodcast.com/2012/09/153-show-107-ash-maurya-author-of-running-lean/http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2327http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2327http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2875http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2875http://leancanvas.com/http://leancanvas.com/http://canvanizer.com/http://canvanizer.com/https://strategyzer.com/https://strategyzer.com/https://www.leanlaunchlab.com/https://www.leanlaunchlab.com/https://strategyzer.com/https://strategyzer.com/https://steveblank.com/https://steveblank.com/http://www.businessmodelalchemist.com/http://www.businessmodelalchemist.com/http://andrewchen.co/http://andrewchen.co/http://startup-marketing.com/http://startup-marketing.com/http://marketbynumbers.com/http://marketbynumbers.com/http://vlaskovits.com/blog/http://vlaskovits.com/blog/http://vlaskovits.com/blog/http://marketbynumbers.com/http://startup-marketing.com/http://andrewchen.co/http://www.businessmodelalchemist.com/https://steveblank.com/https://strategyzer.com/https://www.leanlaunchlab.com/https://strategyzer.com/http://canvanizer.com/http://leancanvas.com/http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2875http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2327http://startupsuccesspodcast.com/2012/09/153-show-107-ash-maurya-author-of-running-lean/http://www.leanblog.org/2011/03/podcast-115-eric-ries-ericries-the-leanstartup/http://www.leanblog.org/2011/03/podcast-115-eric-ries-ericries-the-leanstartup/http://www2.lse.ac.uk/publicEvents/events/2012/01/20120112t1830vSZT.aspxhttp://ecorner.stanford.edu/authorMaterialInfo.html?mid=2329http://leanstartupmachine.com/http://leanca.mp/http://steveblank.com/2012/09/06/the-lean-launchpad-online/http://www.udemy.com/lean-startup-sxsw-2012-videos-and-presentations/http://www.amazon.co.uk/gp/product/1449305172/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=1449305172&linkCode=as2&tag=wellpersblogo-21http://www.amazon.co.uk/gp/product/0470876417/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=0470876417&linkCode=as2&tag=wellpersblogo-21http://ttp//www.amazon.co.uk/gp/product/0984999302/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=0984999302&linkCode=as2&tag=wellpersblogo-21http://www.amazon.co.uk/gp/product/0670921602/ref=as_li_ss_tl?ie=UTF8&camp=1634&creative=19450&creativeASIN=0670921602&linkCode=as2&tag=wellpersblogo-21http://igniteshow.com/videos/startup-metrics-pirates-aarrrhttp://500hats.com/http://service360partners.com/b2c-service/service-model-generation/http://service360partners.com/b2c-service/service-model-generation/http://www.businessmodelalchemist.com/2012/09http://www.businessmodelgeneration.com/http://www.businessmodelalchemist.com/2012/09http://www.businessmodelalchemist.com/2012/09http://pmarca-archive.posterous.com/the-pmarca-guide-to-startups-part-4-the-only