The Lean Startup approach is a methodology for developing and launching new products or businesses based on the principles of lean manufacturing, which aims to eliminate waste and increase value for customers. The Lean Startup approach was popularized by Steve Blank and Eric Ries in their books The Four Steps to the Epiphany and The Lean Startup, respectively.
The Lean Startup approach consists of three core concepts:
- The Build-Measure-Learn cycle. This is the process of turning ideas into products, testing them with customers, measuring the results, and learning from the feedback. The goal is to minimize the time and resources spent on building products that customers don’t want, and instead focus on finding the optimal solution that satisfies customer needs and generates revenue.
- The Minimum Viable Product (MVP). This is the simplest version of a product that can deliver the core value proposition to customers and test the key assumptions and hypotheses about the problem, solution, market, and business model. The MVP is not meant to be a final product, but rather a learning tool that allows entrepreneurs to validate their ideas quickly and cheaply before investing more time and money into development.
- The Pivot. This is a change in direction or strategy based on the feedback and data collected from testing the MVP. A pivot can be a minor adjustment or a major overhaul of the product or business model. The purpose of a pivot is to avoid pursuing a failing idea and instead find a new or improved way to achieve product-market fit.
The Lean Startup approach is a method that helps entrepreneurs and innovators create products or businesses that customers want and are willing to pay for, while reducing the risk of failure and maximizing the learning potential. The Lean Startup approach encourages experimentation, iteration, and adaptation based on customer feedback and data.