Lean Startup
What is The Lean Startup?
The Lean Startup is a product development process focused on customers and
their needs, using lessons learned in iterations. It is used especially in
technology startups.
In classic case, if you start a company probably you have an idea. A great
idea in your opinion. You think that people will love your product. You create
a product based on your thoughts. After a year or so you finally made it.
Finally your product has been tested and ready to rule the market. The day of
product launch came and … nothing happened. Some people download it. Use it or not.
You don’t know why. After some time a very few people use your product.
Why? Probably, because you create a product relying only on your thoughts and
assumptions, not thinking and asking people what they really need.
And The Lean Startup comes here. It’s a development process model where you
start from an idea and verify it. Put your idea on Lean Canvas and go outside
the building to ask people about it.
Lean Canvas
Lean canvas is a simple business model on a single
paper sheet. It shows your hypothesis and assumptions very well.
The model is divided into 9 parts:
1. Problem - 3 main hypotheses of the problem which you
want to solve
2. Customer segments - 3 main customer segments
you will target with the product
3. Unique value proposition - what makes your product
valuable
4. Solution - 3 main features of your probable solution
5.
Channels - ways to
reach customers
6. Revenue channels - how you will make money
7.
Cost structure - all your
costs
8. Key metrics - measurable metrics to calculate growth
9. Unfair advantage – what you are better at
 |
| Lean Canvas - Fuldr.com |
MVP - Minimum Viable Product
MVP is a version of a product that gives customers a unique value and solves the main
problem they have.
There are some definitions of MVP:
"The minimum viable
product is that version of a new product which allows a team to collect the
maximum amount of validated learning about customers with the least
effort." ~ Eric Ries
“A Minimum Viable Product is the smallest thing
you can build that delivers customer value (and as a bonus captures some of
that value back).” ~ Ash Maurya
You go from this version of
the product you test to the real environment, measure
your growth and make changes to create the best product.
Build -
Measure - Learn
After creating a MVP you have to improve
your product. Change it every day and look how the
changes work. Work in a loop “Build - Measure - Learn” to get best results.
The main goals at this stage are:
·
Minimize TOTAL
time through the loop
·
Learn as much as
you can in single iteration
·
Create tools for
fast deployment and measurement
·
Organize your team
around this process
 |
| Build-Measure-Learn Loop - Eric Ries |
Summary
As you can see The Lean Startup Model is focused on customers
and their needs. Start from hypotheses and test them before creating a product. You can save a lot of money and time
using this model. This method works on continuous development, so you provide
a better product every day.
Finally it is highly probable that your product will
fit the market and make customers happy.
Sources:
The Lean Startup, Eric Ries,
2011
Running Lean, Ash Maurya, 2012
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