The familiar approach of writing a business plan, pitching it to investors, assembling a team, launching a product, and starting to sell has become a relic. Applying it now in this sequence of events is likely to lead to fatal failure. To have a chance at real success you need to think smart. That’s what a lean startup methodology will help you do.
How to create a product that the customer needs?
It is a huge challenge to build a digital product or develop a business idea that truly meets the needs and demands of the market. However, there is a recipe that will allow an entrepreneur to achieve the success they dream of. A tried and tested solution to this challenge is the lean startup methodology, a set of tools and processes that align your development efforts with the needs of your customers, engaging the people who will actually use your product. So let’s start with an introduction to the lean startup methodology, its features and benefits, and its suitability for use in any digital configuration. Large, complex products are unlikely to be cheap and fast, regardless of the process methodology you use. However, it is virtually guaranteed that using a lean startup methodology will make your project cheaper and faster than if you did not. Whether you choose the traditional startup approach or the lean approach, understanding the differences between the two methods should help you determine which approach is the best fit for your new startup.
Operation and Function of the Methodology
A lean startup methodology is a method of managing and building a business or startup by experimenting, testing and iterating while developing products based on test results and feedback. If you are thinking of creating a business and looking for ways to do so, it is worth understanding the phenomenon of lean startup and why this concept has displaced the traditional one. By implementing a lean startup methodology, a company using this methodology will focus on product development while gaining customer feedback, which usually involves releasing a minimum viable product or a small subset of customers. With a strong focus on user and customer needs and, most importantly, developing products that meet those needs, the lean startup methodology allows us to work quickly, test ideas and hypotheses at the earliest possible stage, and then move each project where necessary to home in on the ideal product. If you want to know you’re making progress, you need to measure it, and for that you need the right metrics. A lean startup avoids traditional performance metrics such as ROI or market share, instead focusing on creating the right metrics.
What does it mean to be a Lean startup?
You will immediately notice that there is less uncertainty – creating a new digital product is often a step into the unknown. You don’t have past performance data to guide you. You have a new idea and you want to make it a reality. The lean startup methodology gives you a framework for creating certainty: clear goals, specific hypotheses, targeted testing and feedback. By reviewing at each stage (after each round of feedback), you can be confident about the next step. When you put this approach into practice, your company will increase operational efficiency in every possible field. The lean startup methodology makes digital product development less risky. You quickly but thoroughly test every major component of your future product, making sure each step or phase is both necessary and working before you move on. It’s a wise use of your time and resources. What’s more, by engaging potential customers from anywhere, you also build audience expectations and interest in your upcoming product. When you become a lean startup, you should expect regular experimentation. Lean changes should be easy because of the iterative approach you take to product development. Over time, you should be able to create a market-ready product. You will save a lot of money but you need to prepare for the stress of how you will react to the feedback you get from test customers, which may not always be .