Lean Startup
Template:Infobox business method
The Lean Startup 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.[1] The approach emphasizes efficiency, customer feedback, and adaptability, making it accessible for startup founders, investors, and non-business individuals seeking to understand modern entrepreneurial practices.
History
The Lean Startup methodology was developed by Eric Ries, an American entrepreneur, in 2008. Ries drew inspiration from lean manufacturing principles, particularly those pioneered by Toyota in the lean production system, which focuses on eliminating waste and optimizing processes.[2] He adapted these ideas to the context of startups, where resources are often limited and uncertainty is high. The methodology gained widespread attention after Ries published his book, The Lean Startup, in 2011.[1]
Core Principles
The Lean Startup methodology is built on several key principles designed to help entrepreneurs create sustainable businesses efficiently:
Build-Measure-Learn
The cornerstone of the Lean Startup is the Build-Measure-Learn feedback loop. Entrepreneurs build a Minimum Viable Product (MVP), a basic version of their product with just enough features to test hypotheses. They then measure how customers respond using data and feedback, and learn whether to pivot (change direction) or persevere (continue with the current strategy).[1] This iterative process reduces waste by avoiding the development of features or products that customers do not want.[3]
Minimum Viable Product (MVP)
An MVP is a product with the minimum features needed to test a business hypothesis and gather customer feedback. For example, a startup creating a new app might release a simple version to gauge user interest before investing in advanced features.[1] The MVP allows startups to validate ideas quickly and inexpensively.[4]
Validated Learning
Validated learning involves using data and customer feedback to confirm or refute assumptions about a business model. Instead of relying on intuition, entrepreneurs use metrics like user engagement or sales to make informed decisions.[1] This scientific approach helps startups avoid building products that fail to meet market needs.[3]
Pivoting
A pivot is a structured course correction based on learnings from the Build-Measure-Learn cycle. For instance, a company might shift its target audience or change its product’s core functionality if initial tests show poor results.[1] Pivoting allows startups to adapt to market realities without starting from scratch.[5]
Benefits
The Lean Startup methodology offers several advantages:
- Efficiency: By focusing on MVPs and iterative development, startups can reduce costs and time spent on unviable ideas.[3]
- Customer-Centric: Continuous feedback ensures products align with customer needs.[4]
- Adaptability: The ability to pivot allows startups to respond to market changes or unexpected challenges.[5]
- Accessibility: The methodology’s straightforward principles make it easy for non-business individuals to understand and apply.[1]
Applications
The Lean Startup approach is widely used in technology startups, particularly in software development and app development. However, its principles have been applied in various industries, including healthcare, education, and non-profit organizations.[6] For example, a healthcare startup might use an MVP to test a new telemedicine service before scaling it nationwide.
Impact and Adoption
Since its introduction, the Lean Startup has influenced entrepreneurship globally. It has been adopted by startups, large corporations, and even government agencies seeking to innovate efficiently.[3] The methodology has also inspired related concepts, such as Customer Development by Steve Blank, which emphasizes understanding customer needs before building products.[3] Educational institutions, including Stanford University and Harvard Business School, have incorporated Lean Startup principles into their entrepreneurship curricula.[5]
See Also
- Lean manufacturing
- Customer Development
- Agile software development
- Entrepreneurship
- Minimum Viable Product
References
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Ries, Eric (2011). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Crown Business. ISBN 978-0-307-88789-4.
- ↑ Ries, Eric. "The Lean Startup: The Origin Story". Retrieved 2025-06-27.
- ↑ 3.0 3.1 3.2 3.3 3.4 Blank, Steve (May 2013). "Why the Lean Start-Up Changes Everything". Harvard Business Review.
- ↑ 4.0 4.1 Moogk, David R. (2017). "Minimum Viable Product: Best Practices for Lean Startups". Journal of Business Venturing Insights. 7: 1–6. doi:10.1016/j.jbvi.2016.11.002.
- ↑ 5.0 5.1 5.2 Eisenmann, Thomas (2013). "Managing Startups: Best Practices for Entrepreneurs" (PDF). Harvard Business School.
- ↑ Vlaskovits, Patrick (2013). The Lean Entrepreneur: How Visionaries Create Products, Innovate with New Ventures, and Disrupt Markets. Wiley. ISBN 978-1-118-29534-2.