When to consider Lean Startup Model

The Lean Startup Model is a methodology for developing businesses and products that aims to shorten product development cycles and rapidly discover if a proposed business model is viable. This is achieved by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and validated learning.

The Lean Startup Model is based on the following principles:

• Build a minimum viable product (MVP): An MVP is a product with just enough features to be usable by early customers and validate the product's core hypotheses.

• Get feedback early and often: Once the MVP is launched, businesses should get feedback from customers as quickly as possible and use that feedback to improve the product.

• Iterate and pivot quickly: Businesses should be prepared to iterate on the product quickly and pivot to a new product or business model if necessary.

• Measure everything: Businesses should measure all aspects of their business, including customer engagement, product usage, and revenue. This data can be used to validate learning and make informed decisions about the future of the business.

The Lean Startup Model has been adopted by many successful startups, including Airbnb, Dropbox, and Uber. It is also being used by larger companies, such as Google and Amazon, to innovate and develop new products and services.

Here are some of the benefits of the Lean Startup Model:

• Reduced risk: The Lean Startup Model helps businesses to reduce the risk of launching a product that customers don't want.

• Faster time to market: Businesses can get their products to market more quickly using the Lean Startup Model.

• Increased customer satisfaction: By getting feedback from customers early and often, businesses can develop products that better meet the needs of their customers.

• Improved innovation: The Lean Startup Model encourages businesses to experiment and pivot quickly, which can lead to more innovative products and services.

Overall, the Lean Startup Model is a valuable tool for businesses of all sizes to develop and launch successful products and services.

The Lean Startup model is a methodology that is particularly well-suited for use cases where the following conditions or challenges are present:

• High Uncertainty: When you are entering a market or industry with a high degree of uncertainty, where it's challenging to predict customer behavior, market dynamics, or technology changes. This can be common in emerging markets, innovative technologies, or when you're creating something entirely new.

• Limited Resources: If you have limited financial resources, time, or personnel, the Lean Startup model can help you make the most out of what you have. By starting small and iterating, you can conserve resources while learning and improving your product.

• Innovative Products or Services: When you're introducing a new and innovative product or service that doesn't have established market demand, Lean Startup principles can help you test and refine your ideas before committing extensive resources.

• Rapid Market Changes: In industries with fast-changing market conditions or consumer preferences, the Lean Startup approach allows you to adapt quickly. This is especially useful when your product needs to evolve to stay relevant.

• Complex Development: If your product or service requires complex development or has a long development cycle, Lean Startup can help you avoid investing too much upfront and validate that you're building the right thing before making large investments.

• Customer-Centric Focus: When your business strategy revolves around understanding and satisfying customer needs, the Lean Startup model emphasizes continuous customer feedback and iterative development.

• Startups and Entrepreneurship: The Lean Startup model was originally designed with startups in mind. If you're a new entrepreneur looking to create a sustainable business, Lean Startup principles can help you navigate the early stages effectively.

• Minimizing Risk: If risk mitigation is a top priority for your project, Lean Startup's build-measure-learn feedback loop can help you reduce the chances of failure by quickly identifying and addressing issues.

• Product-Market Fit Validation: The Lean Startup model is especially valuable for validating or invalidating the product-market fit hypothesis. It helps you determine if there is a real demand for your product in the market.

• Iterative Improvement: If you believe in the value of iterative development and ongoing optimization, the Lean Startup model provides a structured framework for this approach.

It's important to note that while the Lean Startup model has gained popularity in technology and startup sectors, its principles and methodologies can be adapted and applied to a wide range of industries and use cases. The core idea is to minimize waste and maximize learning by continuously testing assumptions, gathering feedback, and adapting your strategy based on what you discover.

Here are some examples of companies that effectively used the Lean Startup model:

• Dropbox - Drew Houston built a simple MVP video demo to validate the concept of a cloud-based file storage service. The video went viral attracting attention and signups. This validated demand before heavy investment.

• Zappos - Nick Swinmurn started by taking pictures of shoes from local stores and put them online without any inventory. This tested demand before holding any actual inventory. Zappos grew from this lean initial model.

• Airbnb - Brian Chesky and Joe Gebbia first tested the Airbnb concept by renting out air mattresses in their apartment. They validated demand with minimal investment before expanding city by city.

• Groupon - Andrew Mason created a basic WordPress site offering group coupon deals for local businesses. As deals sold, they validated the demand before building out a full Groupon platform.

• Spotify - Spotify tested its initial music streaming service with private beta groups before public launch. Their feedback helped refine the platform's features and user experience.

• Udemy - Instead of building a full platform first, Udemy validated interest by having instructors use external software for video courses that linked to PayPal for payment.

Sash Barige

Nov/17/2019

Sources: en.wikipedia.org/wiki/Lean_startup