Understanding how the world of business works and the methods you should use in getting to the promised land is the true meaning of going lean. In The Lean Startup:How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, Eric Riles gives us his scientific approach on how to create and manage a startup to grow at lightning speed – successfully.
According to Eric, “Using the Lean Startup approach, companies can create order, not chaos by providing tools to test a vision continuously,” which ultimately means you need to work smarter, not harder regardless of company size.
“The Lean Startup is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time.”
The concept of the book is that anyone can have a successful business when you do the work and apply the formula if they remember the key principles: entrepreneurs are everywhere, entrepreneurship is management, validated learning, build-measure-learn; and innovation accounting.
Entrepreneurs are everywhere
You can be anywhere at any time and create a startup. The key is in thinking big, starting small and scaling fast.
Entrepreneurship is management
As an entrepreneur, you need to be accountable for yourself by exercising effective management skills. You must know the process in order to successfully implement the process. It’s easier to avoid mistakes when you know how to assess value and determine your next steps.
Startups exist to learn how to build a viable business. Each component can be scientifically validated by running experiments that demonstrate and test your vision. With validation, you will be able to identify and address the key risks in your product or service and make adjustments to properly position your brand.
The "Build-Measure-Learn feedback loop is at the core of the Lean Startup model.” This means the main activity of a startup is to transform ideas into products or services, measure your metrics for audience response, and determine whether you need to pivot (change something) or persevere (continue on). Every process within the loop should accelerate feedback.
This process holds entrepreneurs accountable for their actions and outcomes through prioritization of work, measurement of progress, and delineation of milestones. All of these elements work together to define entrepreneurship, introducing a new way of how it should be done.
How It’s Done
Delivered in three key sections, this book takes Marketers through a number of key principles to reinforce the Lean Startup mindset. In our full summary we'll take you through these principles in more detail and how to make them work at your organization.
To view the full summary, click "continue reading" below.