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Why the lean start-up changes everything

As an important countervailing forces, the "Lean start-up" turns the conventional wisdom about entrepreneurship on its head. It favors experimentation and iterative design, makes the process of starting a company less risky. Although the methodology is just a few years old, its concepts have quickly taken root in the start-up world.

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Why the lean start-up changes everything

  1. 1. Changes Everything TheLeanStart-Up Why
  2. 2. Steve Blank The Author Silicon Valley serial-entrepreneur and academician
  3. 3. Technologycommercialization manager ExploitTechnologiesPte Ltd (ETPL) AgencyforScience, TechnologyandResearch (A*STAR, Singapore) B. Eng & Ph.d (Engineering) NanyangTechnological University Singapore M.B.A. INSEAD Fontainebleau,France Presentationby LI Wei
  4. 4. Launching a new enterprise has always been a hit-or-miss proposition
  5. 5. 75%of all start-ups fails by Harvard Business School’s Shikhar Ghosh
  6. 6. Recently an important countervailing force has emerged, one that can make the process of starting a company less risky
  7. 7. leanstart-up
  8. 8. As its practices spread, they’re turning the conventional wisdom about entrepreneurship on its head
  9. 9. The Fallacy of the Perfect Business Plan
  10. 10. the decades-old formula for start-up write a business plan pitch it to investors assemble a team introduce a product Start Selling 1 2 3 4 5
  11. 11. After decades of watching thousands of start-ups follow this standard regimen, we’ve now learned at least three things
  12. 12. Plans rarely survive first contact with customers
  13. 13. “Everybody has a plan until they get punched in the mouth MikeTyson
  14. 14. The forecast of unknowns is useless
  15. 15. No one besides venture capitalists and the late Soviet Union requires five-year plans to forecast Completeunknowns
  16. 16. These plans are generally fiction, and dreaming them up is almost always a waste of time
  17. 17. Successful start-ups don’t follow the plan
  18. 18. Start-ups are not smaller versions of large companies
  19. 19. They do not unfold in accordance with master plans
  20. 20. The ones that ultimately succeed go quickly from failure to failure,
  21. 21. all the while adapting, iterating on, and improving their initial ideas as they continually learn from customers
  22. 22. Existing companies Execute A Business model Start-ups look for A business model
  23. 23. leandefinitionofastart-up a temporary organization designed to search for a repeatable and scalable business model
  24. 24. The three key principles of the lean method
  25. 25. The business model canvas
  26. 26. Entrepreneurs accept that all they have on day one is a series of untested hypotheses
  27. 27. So instead of writing an intricate business plan, founders summarize their hypotheses in a business model canvas
  28. 28. Essentially, this is a diagram of how a company creates value for itself and its customers
  29. 29. Customer Development
  30. 30. Lean start-ups use a “get out of the building” approach called customer development to test their hypotheses
  31. 31. They ask potential users, purchasers, and partners for feedback on all elements of the business model
  32. 32. The emphasis is on nimbleness and speed
  33. 33. New ventures rapidly assemble minimum viable products and immediately elicit customer feedback
  34. 34. Then, using customers’ input to revise their assumptions, they start the cycle over again, Customer Discovery Customer Validation Customer Creation Company Building PIVOT
  35. 35. testing redesigned offerings and making further small adjustments Customer Discovery Customer Validation Customer Creation Company Building PIVOT
  36. 36. agile development
  37. 37. Agiledevelopment customerdevelopment
  38. 38. Unlike typical yearlong product development cycles that presuppose knowledge of customers’ problems and product needs
  39. 39. agile development eliminates wasted time and resources by developing the product iteratively and incrementally LearnMeasure Build
  40. 40. It’s the process by which startups create the minimum viable products they test
  41. 41. conclusion
  42. 42. It is too grandiose to claim that the lean process can make individual start-ups more successful
  43. 43. However, if the method is used across a portfolio of start-ups will result in fewer failures than using traditional methods
  44. 44. The lean start-up method has emerged at a time when other business and technology trends are likewise breaking down the barriers to start-up formation
  45. 45. The combination of all these forces is altering the entrepreneurial landscape and could have profound economic consequence
  46. 46.