On his Harvard Business Review article: Why the Lean Start-Up Changes Everything, Prof. Steve Blank explains the principles of a new strategy for start-ups developed by his alumni, Eric
Ries.
Eric Ries connected customer development and agile practices
like the lean manufacturing system, developed by Toyota many years ago, and named
this combination "The Lean Start-up".
According to Blank (2013), the old concept for start-ups infers
that exposing prototypes is dangerous due to competitors. Thus, entrepreneurs
spend lots of months searching and developing a product/service inside the
building and then go to the market with the risk of getting the product/service
wrong.
This is one of the reasons why many research studies have shown 75% of all
start-ups fail, since most common is that the start-ups even do not know who their
customers are or what their product/service should be!
The lean start-up methodology suggests that in most
industries customer feedback matters more than secrecy. It claims that is
essential for the survival of the new business, failing fast, continually
iterating and learning.
Therefore, entrepreneurs must to “transform business as
they know it; get out of the office and test hypotheses” (Blank, 2013). The
lean start-up method proposes making start-ups less risky and aims a lower
start-up failure. The model predicts an
improvement in the whole economic system, since many workers will be hired if
the small businesses survive and achieve success over the time.
For years, MBA programs have trained base on large-company
approaches. Now more than 25
universities are teaching Lean start-up approach and are become conscious that
new businesses need different management tools. The main idea behind the lean
start-up approach is that entrepreneurs, instead of focusing on just developing
a business plan, must to define the “assumptions of the new venture, testing
those assumptions in the field (get your hands dirty), and then changing
(pivoting) based on the lessons learned” (Blank, 2013).
In my opinion, and with all the respect for the authors of
this new trend, I understand this concept itself is not new at all. We know
that we have the market research concept which has a high validity with respect
to the information obtained. However, for a start-up, a study market research
could be too costly and you could get the "analysis paralysis illness :(
Kotler & Keller state that Marketing is "about
identifying and meeting human and social needs" (2012). New entrepreneurs
seek a response. Marketing can help them to introduce new products and build
demands. The lean start-up model is about to preserve you cash until you have
product/market fit. It sounds great for new entrepreneurs since that means to
design the product/service with the help of consumers, far more quickly,
cheaply and effectively.
Emilsis
Blank, S. (May, 2013). Why
the Lean Start-Up Changes Everything. Harvard Business Review. Retrieved
from: https://archive.harvardbusiness.org/cla/web/pl/product.seam?c=25903&i=25905&cs=f85785d3580feb87e2bce1535af10c2f
