What is a Lean Startup?
The Lean Startup is methodology centered set of principles on how to launch a business quickly, using the least amount of resources possible by measuring your customers' needs and responses to your business, and then it incorporates their feedback into organic growth.
Where the idea comes from?
The Lean Startup movement was launched and guided by Eric Ries, that is about transforming how new products are built and launched. The movement began as a reaction to the classic business practice of spending lots of time and money developing a product, only to find out customer’s feedback after launch. As a senior software engineer at There, Inc., Ries witnessed the company spend five years and much of $40 Million in funding to launch There.com. The product didn't take off, and the company of almost 200 employees was eventually forced to shut its doors. According to Ries, the mistake they made was that the vision of the founders was not in line within the needs of the consumers.
Benefits to get
As Fast Company wrote, "lean" is "less about how to make startups more successful and entrepreneurs richer than it is a fundamental reexamination of how to work in our complicated, faster-moving world."
This idea has multiple benefits, including:
- Minimizing the requirements of funding.
- Opportunities to acquire feedback from customers to incorporate it into growth
- In rapidly changing markets adapts and maintains nimble structure.