Some points from Lean Startup book
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.
- The first step is figuring out the problem that needs to be solved and
- then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible.
- Once the MVP is established, a startup can work on tuning the engine.
4. Validated Learning
- ENTREPRENEURS ARE EVERYWHERE
- ENTREPRENEURSHIP IS MANAGEMENT
- VALIDATED LEARNING
- INNOVATION ACCOUNTING
The rate of growth of any startup or business depends on three things:
- the profitability of each customer,
- the cost of acquiring a new customer,
- and repeat purchase rate of existing customers
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