The Lean Startup: What Is It, Principle And Is It Better?
The lean startup is a very suitable business to run for those of you who are starting a business but have limited human resources, capital and time. However, before knowing about lean startup, you must understand what a startup is.
Startup is a company that has just started building its business. Of course, in other words, startups are still doing product development to find the right formula and market for their product.
What is Lean Start Up?
So, the lean start up is a product development method that is carried out briefly by involving consumers directly.
This can happen because every company will issue a product, they will send samples of these products to consumers to get ratings as well as direct feedback from consumers.
In this way, the time needed by a company to develop a product becomes faster and more efficient.
Principles of Lean Start Up
According to Eric Ries in his book and blog entitled The Lean Startup, they have 7 principles so that lean startups can run optimally. Among others are:
- Minimum Viable Product (MVP)
- Continuous Deployments
- Split Testing
- Actionable Metrics
- Pivots
- Innovating Accounting
- Build-Measure-Learn
How Lean Start Ups Work
There are 3 phases of how you can work to create a lean startup, including:
Builds
In this phase the company will find a product idea that has a minimum viable product that will be tested directly on consumers. You don’t need to share the prototype of this product with all consumers, just share the MVP with a small group to get direct evaluation and feedback from consumers.
Measure
In this phase it is important for you to see the ratings and feedback from customers. With this you can determine whether the product development will continue or not.
Learn
From the data obtained at the measurement stage, the company will study the data to make decisions regarding the development of the product. In other words, at this stage a decision will appear to continue or stop the development of a product.
Difference between Lean Startup and Normal Business
1. Lean Startups
- Develop products according to customer wishes
- Validated Learning as a determinant of customer desires
- Using MVP to assess customer reactions
- Focus on experimentation
2. Ordinary Business
- Making business plans for a certain period of time
- Clear financial projections
- Making products in secret
- Business plans are used to obtain funds from investors
Example of Lean Startup
For example, you want to develop a sunscreen product that is suitable for the skin of children aged teenagers. You will share examples of sunscreen products that you want to develop with 30 teenage consumers, and get ratings and feedback from these customers.
After getting an assessment and feedback, you can study the data, then develop your product according to the feedback you get. If the response from the customer is bad enough, you can decide to stop or continue the project.
Closing
Those are some information about the lean start up. To get more complete information, please also check the article on tips for getting funding for startups.
Hopefully the information about lean start up above can help those of you who are starting to develop your business and products.
