What is all this Lean Startup business about?

Good question. This blog post started off life as a brief foundation of The Lean Startup principles,  with the aim of giving everyone an idea of what I am talking about. As with most things in life the original thought grew arms and legs and it has caused me to re-assess my approach.

When I first read The Lean Startup book it wasn’t so much the individual steps that hooked me but rather the over riding philosophy.

This philosophy runs through three books at the core of the Lean Startup and is more than any one book or author:

  • The Four Steps to the Epiphany by Steve Blank
  • The Lean Startup by Eric Reis
  • Business Model Generation by Alexander Osterwalder

At this stage, rather than focus on the individual steps laid out in one book, I want to look at the common themes across the movement.

The one unifying theme among all proponents of the movement is to re-assess how we approach startups in the business world with the aim of increasing the success rate. We have all heard the statistics around the failure rate of new businesses the world over, clearly there is something wrong.

 The one point that really hit home for me was the realisation that startups are not simply smaller versions of large corporations- often referred to as the dollhouse fallacy. Once we accept this we realise that the tools and procedures for measuring and monitoring the success of established corporations are not suitable for startups. The Lean Startup philosophy tackles this in an innovative way.

In the process of writing the post it became very apparent to me that while I have read The Lean Startup by Eric Reis I needed a better understanding of the wider process. This insight has prompted me to create and share a reading list to broaden my understanding and ensure that I have the right process in place for when the business launches. More on that to follow!

I am currently at the theoretical stage of starting the business and ultimately the real learning will happen when I start to implement the principles but it is imperative that I have a strong foundation to build on. I’d rather be spending my time doing this than a traditional business plan trying to guess my turnover in 1,3 and  years.

I apologise if you were looking for a more comprehensive answer to the question of title but I promise that this approach will be much more beneficial in the long-run!

The journey continues…. 


 

Challenge all assumptions in business

I read an interesting article by Alex Cheatle (The Founder of Ten Group) in the Entrepreneur section of the Financial Times this weekend that warns business leaders to be wary of old business axioms.

I could not agree with Alex more and as someone at the very early stages of a startup (I am still working my notice at my job) I have found the principles laid out by The Lean Startup movement offer some degree of antidote to the malaise. At the core of The Lean Startup movement is the belief that we should challenge all assumptions about business. The whole process revolves around turning these assumptions to facts- or at least to find out that our assumptions are incorrect as early as possible.

The movement has grown in one sense from the response to the question- “Why do so many startups fail?”

The short answer is that companies of all sizes spend too much time, money and effort developing products and services that nobody wants or needs.

The Lean Startup movement offers a framework to allow entrepreneurs to better manage the process as they test their assumptions about their customer offering and the potential to build a business around the idea.

As Reis points out, in this day and age the question is no longer can we build it but should we?

Although it was The Lean Startup book by Eric Reis that initially caught my (and the worlds) attention, the wider movement is much greater than one book or one individual and it has inspired me to read wider and deeper. It is a movement that is gathering pace worldwide albeit with much more velocity in the US than in the UK and is having a significant impact on the whole startup ecosystem.

The words ‘startup’ and ‘entrepreneur’ conjour up many thoughts in people’s minds- both positive and negative. It is important at this stage to state that all the proponents are keen to point out that the terms startup and entrepreneur are not restricted to college students in their dorm room.

a startup is an organization formed to search for a repeatable and scalable business model.”

Steve Blank

 I am hesitant to refer to the movement as an ‘Entrepreneurial Enlightenment’ as some have done but it is doing some great work in rethinking the approach to starting up in business with the aim of improving the success rate of startups.

If you are involved in a startup or are in the process of developing a product within an established business and you are not aware of The Lean Startup movement then I highly recommend reading some of the fantastic content online as a starting poing. The following websites are a great starting point:

http://theleanstartup.com/

http://www.startuplessonslearned.com/

There are a lot of assumptions out there about startups and business in general, it is imperative that we test and challenge these assumptions, this is how we can truly innovate and succeed.

Join me on the journey as I challenge all the assumptions I have about business!