Lean startup has been a great success in the market, as it changes the paradigm of thinking about business. Rather than thinking of business in the traditional terms of creating a large business plan, and following that plan, it considers the customer and the business environment as a lot more dynamic and changing.
There are a few concepts that have really mastered the lean startup model. The first is the MVP (minimal viable product). This is where you sell something that is just sufficient for early customers to buy in, and subsequently provide feedback to develop your product. This way you can view your business as a continual improvement process rather than a static process.
In the methodology you go through cycles of your product and services, measuring each stage and the impact, and so you learn to make decisions about what is working, what is not working and how to refine the process. Ultimately, you’re getting a better and better process.
As part of the cycle we have the following stages.
What is your idea? Look at the customer problems, what they need and what your assumptions are. Get all of these ideas noted down.
Work out what is the minimal viable product that you need to build to deliver to a specific idea. This should involve the product doing what it needs to satisfy the basics of what the customer needs.
In the building stage, it is about spending and investing time to get the MVP out of the box and into the hands of your customers.
In the measurement stage, it is about understanding what you have delivered, and how you will measure the success of the product. This includes a variety of tests you can perform such as split test, feature analysis, marketing tests and monitoring on your products and services.
You need to learn from the results of the measurement stage. Think about what have you found out in this product life cycle, what was good and what wasn’t so great. What where your assumptions and why were they right or wrong?
This bring you back to your idea, what you were creating, and what needs to be improved or changed to bring your product back on to the market in a stronger position.
This is a great methodology if you have a lot of ideas. You can control have greater control over the cost and time in the build cycle. This methodology works with other tools as well, which includes the business canvas in your idea stage. Make sure that you understand the fundamentals of what you’re creating your product or service for, and how it will keep developing.