Sometimes, starting a business turns out to be an intimidating experience.
You start with immense passion, motivation and a strong will but end up on a completely different note.
Each time startups and innovations fail, an extensive amount of money, time, skills, and passion are wasted. However, if you are adopting the right approach, things can always turn your way.
And this can only be possible if you are good enough to develop new products and services successfully under conditions of great uncertainty.
It is what Eric Ries, an American entrepreneur, blogger, and author of The Lean Startup, prominently talks about in his book.
Eric sheds light on the 5 lean startup principles that can help startups build an adaptive culture to thrive in a rapidly changing world.
So, if you want your startup business to achieve something big and remarkable, keep watching the video.
The 5 Lean Startup Principles
1. Entrepreneurs are Everywhere
A startup is “a human institution designed to create a new product or service under conditions of extreme uncertainty”. You cannot define it by company size or organization type. Like you, there are hundreds of other people trying to find ways to make the most out of their businesses.
So yes, the competition is there. You are not alone in the market and you cannot even think of going back into the relaxing mood and leave the rest of the things on nature.
Always be attentive and bring your A game forward.
2. Entrepreneurship is Management
A lot of people have a misconception that management is boring, while entrepreneurship is very exciting.
Since a startup is an institution that needs to be managed, so technically, entrepreneurship is management. And when we talk about a lean startup, it means integrating ideas from lean manufacturing. For example, just-in-time inventory management, accelerated cycle times, and small batch sizes.
In the startup culture, when you are launching new products or services, you don’t really know who your clients are. You are no way in a position to predict which approach works best until you put them to the test.
In most of the cases, entrepreneurs tend to adopt a “just-do-it” approach or suffer from analysis paralysis and spend excessive amount of time perfecting their plan.
Either way, by the time they realize they have created something that nobody wants, it is too late.
On the other hand, The Lean Startup’s Build-Measure-Learn feedback loop allows you to learn quickly and make continuous adjustments to understand which approach works best.
4. Validated Learning
Performance tracking is one of the most integral components that helps in making the right decisions and mold your strategies according to the on-going situation.
Apart from investing huge budgets on driving audiences, you should have a clear idea about how such a group of people is reacting to your products or services, as it will open up several opportunities for you to improve and come up with a mature plan.
5. Innovation Accounting
Innovation accounting is representing ways to communicate process and progress of innovation projects through relevant KPIs.
It is a very crucial principle that helps you set the milestones and track your progress towards your set goals and priorities.
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