The lean startup part two
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The document discusses the lean startup process of building a minimum viable product, measuring how customers respond to it, and learning from that feedback to determine if the original strategy should be pivoted. It emphasizes that the goal is to minimize the time spent in the build-measure-learn loop to determine quickly if the product is something people want. Entrepreneurs must understand why a startup grows and avoid non-value creating types of growth like relying only on fundraising. They also need a financial model to rigorously evaluate progress quantitatively at each stage of the process.
The lean startup part two
- 1. The Lean Startup: Part Two Ericksson González Reyes
- 2. Main Ideas At its heart, a startup is a catalyst that transforms ideas into products. As customers interact with those products, they generate feedback and data. The feedback is both qualitative (such as what they like and don’t like) and quantitative (such as how many people use it and find it valuable). As in lean manufacturing, learning where and when to invest energy results insaving time and money.
- 3. We can visualize this three-step process with this simple diagram:
- 4. Main Ideas The first step is to enter the Build phase as quickly as possible with a mínimum viable product (MVP). The MVP is that version of the product that enables a full turn of the Build-Measure-Learn loop with a mínimum amount of effort and the least amount of development time. When we enter the Measure phase, the biggest challenge will be determining whether the product development eorts are leading to real progress.
- 5. Main Ideas if we’re building something that nobody wants, it doesn’t much matter if we’re doing it on time and on budget. Finally, and most important, there’s the pivot. Upon completing the Build-Measure-Learn loop, we confront the most difficult question any entrepreneur faces: whether to pivot the original strategy or persevere. If we’ve discovered that one of our hypotheses is false, it is time to make a major change to a new strategic hypothesis.
- 6. Main Ideas All of the techniques in Part Two are designed to minimize the total time through the Build- Measure-Learn feedback loop. it’s essential that entrepreneurs understand the reasons behind a startup’s growth. There are many value-destroying kinds of growth that should be avoided. An example would be a business that grows through continuous fund-raising from investors and lots of paid advertising but does not develop a value-creating product. Like its traditional counterpart, innovation accounting requires that a startup have and maintain a quantitative financial model that can be used to evaluate progress rigorously.