Lean Startup Notes

Some points from Lean Startup book

leanstartup

1. Eliminate uncertainty

Using the Lean Startup approach, companies can create order not chaos by providing tools to test a vision continuously.

2. Work smarter not harder

The question is not “Can this product be built?” Instead, the questions are “Should this product be built?” and “Can we build a sustainable business around this set of products and services?”

3. Develop an MVP

A core component of Lean Startup methodology is the build-measure-learn feedback loop.

  1. The first step is figuring out the problem that needs to be solved and
  2. then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible.
  3. Once the MVP is established, a startup can work on tuning the engine.

4. Validated Learning

Principles

  1. ENTREPRENEURS ARE EVERYWHERE
  2. ENTREPRENEURSHIP IS MANAGEMENT
  3. VALIDATED LEARNING
  4. INNOVATION ACCOUNTING
  5. BUILD-MEASURE-LEARN

source: http://theleanstartup.com/principles

The rate of growth of any startup or business depends on three things:

  1. the profitability of each customer,
  2. the cost of acquiring a new customer,
  3. and repeat purchase rate of existing customers

source: https://selz.com/blog/lean-startup-5th-10-must-read-startup-entrepreneur-ebooks/

Engine of growth

  • sticky – attract and retain customers for long term (e.g. telco)
  • viral – customer MUST tell others to use/buy when they are using. (e.g. hotmail, tupperware)
  • paid – how much to acquire a new customer

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