The document discusses the lean startup methodology pioneered by Eric Ries in 2008. It is modeled after lean manufacturing principles and aims to help startups launch products faster with less funding through a process of building minimum viable products, testing ideas quickly with customers, and incorporating feedback through iterative improvements. The lean startup approach advocates developing a product customers want initially rather than attempting to build the perfect product. It helps impose structure on the uncertain startup process through principles like the build-measure-learn feedback loop. While the lean startup methodology has been successfully adopted by many companies, some risks include oversimplifying the process or compromising on quality in the rush to launch minimally.

1. The Lean Paradigm
Sometimes while working on one theme one gets fascinated with something else
that is related and interesting. This is exactly what happened when I started working
on the product development blog Ace up Your Sleeve. I came across several
references on lean startup methodology that caught my fancy and the outcome is
this blog on lean startup methodology in product development.
There’s something about taking a plow and breaking new ground. It gives you
energy. Ken Kesey
Ever thought of implementing lean in your startup? In 2008, Eric Ries, a Silicon
Valley entrepreneur, pioneered the lean startup movement. You may have already
deduced that the lean startup methodology is modeled on the lean manufacturing
philosophy and can be adopted by anyone who wants to launch a new product or
service in the market. By espousing the lean startup methodology, you can avoid
extensive fund requirements and complex business plans with a product that may
not be perfect but at the same time gives you a better chance to succeed in the
market.
What have we learned from earlier startups using conventional methods?
*Elaborate business plans do not work. Some of the heroes of today’s would-be
entrepreneurs, such as Steve Jobs, Bill Gates and Michael Dell did not have
business plans in hand when they embarked on ventures that changed the world.
*Operating in stealth mode is an obsolete practice.
*Attempting to build the perfect product is a short-cut to failure.
The lean startup approach gives you a tool to help create and manage your startup
to be able to market your product faster. The lean startup methodology further
advocates that you first come out with a product that works for your customer. You
can spend time and effort later to fine-tune the product based on the feedback of the
customer.
The reality is the Lean Startup method is not about cost, it is about speed. Lean
startups waste less money, because they use a disciplined approach to testing new
products and ideas.Eric Ries

2. According to Eric Ries, the lean startup methodology can support you in many
different ways.
First is the creation of a process for product development. When we think of lean the
first thing that comes to mind is spending less money to create something very fast.
Lean is also about putting a method to the madness especially in the case of
startups with their load of uncertainties.
The lean startup methodology helps an entrepreneur during the initial period when
ideas are being tried out. You then share this with some prospective customers and
capture their reactions to evaluate the potential of the idea. This feedback will
indicate if a product should be built and whether it is a viable option. If the idea is
successful, you can persevere and go in for further iterations to build an improved
product. In case the responses are not encouraging, you can pivot and experiment
with other ideas.
It advocates the adoption of the build-measure-learn feedback loop. You begin with
identifying a problem then building a minimum viable product (MVP) to solve the
problem. With the MVP in place you begin measurements and quickly get into the
learning process and build-in enhancements in the MVP as you go along.
The success of any business, startup or other, is measured by the quality of its
products or services. Within the uncertainty of your startup you can show progress
by following a well established process, or as Eric Ries terms it “validated learning”.
As an entrepreneur it is important for you to be familiar with the five principles that
guide the lean startup methodology.
1. You will find entrepreneurs everywhere.
2. All businesses need to be managed.
3. Build a sustainable business through validated learning.
4. Accountability must be imposed for better results with Innovation accounting.
5. Adopt the feedback loop of build-measure-learn.
The lean startup methodology has changed the way companies are being shaped
today. Most of the successes of startups can be rightfully attributed to this innovative
practice. The widespread use is testimony to the benefits that entrepreneurs like you
look to derive and jump-start your business. It is only logical that we should also look
at the flip-side of the story.
The Lean Startup has evolved into a movement that is having a significant impact on
how companies are built, funded and scaled. Eric Ries

3. The lean startup approach has been successfully adopted by many entrepreneurs
leading to its rampant acceptance around the world. Many of these entrepreneurs
feel qualified to share their stories and provide guidance to future entrepreneurs by
repackaging and oversimplifying the methodology according to their own
experiences, which may or may not work for you. The concept of developing an MVP
poses a risk of its own, as you may ignore the minimum level of quality to make
customers want to buy your product. You can build a car that will successfully take a
person from one place to another. How many buyers will you get if your car does not
have the basic safety features? In an attempt to eliminate wasteful practices and
uncertainty you may end up tweaking an existing product to create your own
speedily and with minimum effort, effectively throwing creativity out of the back door.
Prime examples of lean startup successes are Facebook, YouTube and PayPal
amongst others.
What you should do is to acquire a thorough understanding of the methodology and
adopt the approach that best fits your business model. At the same time do not
compromise on your vision and objectives in building your business.
REFERENCES:
1. Wikipedia. Lean startup. https://en.wikipedia.org/wiki/Lean_startup
2. Steve Blank. Why the Lean Start-Up Changes Everything. 2013.
https://hbr.org/2013/05/why-the-lean-start-up-changes-everything
3. Eric Ries. THE LEAN STARTUP METHODOLOGY.
https://theleanstartup.com/principles
4. The 5 principles of lean startup. 2015. https://leanstartup.co/day-2-5-principles-of-
lean-startup/
5. Natasha Hussein. What’s wrong with the lean startup methodology?. 2015.
https://thenextweb.com/entrepreneur/2015/07/05/whats-wrong-with-the-lean-startup-
methodology/#gref
6. Eric Ries. Creating the Lean Startup. https://www.inc.com/magazine/201110/eric-
ries-usability-testing-product-development.html
7. Nicholas Thomas. 11 Startups That Found Success By Changing Direction. 2011.
https://mashable.com/2011/07/08/startups-change-direction/#6Ye7DWMHEsqc
Source : https://www.wfnen.org/blog/the-lean-paradigm/