The Lean Startup: How today’s Entrepreneurs Use Continuous Innovation by Innovify

Starting a business is one of the most exciting things you can do legally. The statistics of success are humbling. 80% of startup businesses fail in the first 5 years. Having a system in place to craft your business is required for success. The building blocks of a business are customers and positive profitable cash flow. Without those two things then there is no business and no wealth creation.

Why is this important to me?

I always want to ask this question as if I am sitting in your shoes. I don't want to waste your time. There are different types of businesses. If you are looking to start a coffee shop or some service based business that has an existing model then you should read the E-Myth by Michael Gerber. Innovify is very functional and will help you systematize your business like a successful franchise.

The Lean Startup is different. Innovify is profiling organizations that are trying to create new ideas and bring them to the market place.

There are two reasons why startups fail?

One they do not know who their customers are and they don't know what the product serves. When Facebook was getting off the ground, Mark Zuckerberg was not sure what the company was or how they would make money. What he was well aware of was the network effect known as Metcalf's law. This simply states that the value of the network grows exponentially as the number of users grows.

The Lean Startup consists of three main sections which are all very important. For the sake of time, I will cover a topic under each section.

1. Vision - Vision is the premise of why the organization exists. Validated learning is the name of the game. In the old days, companies had to spend a bunch of capital and resources on prototypes, engineering and products. They would invest most of their capital on these endeavors and not know if people would actually buy the product. Business people and technical gurus think that the product has to exist first. This is a fundamental flaw in today's fast paced economy.

2. Validated Learning - This is the most powerful concept in the in Innovify in my humble opinion. Examples of these would be a hockey shaped curve over time that shows the number of registrations on a website or the amount of mentions in PR. All of these things are good but not to base decisions on for your startup. Basically instead of looking at cumulative totals or gross numbers such as total revenue and total number of customers, one looks at performance of each group of customers that comes into contact with the product independently.

3. Disciplined Action / Disciplined Thought - The LeanStartup dives pretty deep into the manufacturing world. Being from Detroit, I have an affinity for large scale automotive manufacturing. Studying Toyota and Ed Deming's principles yields a host of learning that can help the startup. Manufacturing and incremental innovation are disciplined processes. If you commit to cohort analytic then split testing everything becomes the norm.

The Lean Startups principles can be used by any entrepreneur to create a business and validate it before you invest your life savings. 

Principle of the Lean Startup Methodology

A startup is a temporary organization meant to implement a new and repeatable business model in conditions of extreme uncertainty. A lean startup efficiently searches for a valuable business model by iteratively validating hypotheses against real users, while committing the least amount of resources at all stages.

 The Lean Startup Methodology was conceived by Eric Ries and is defined as:

Lean StartUp

(1) Entrepreneurs are everywhere

(2) Entrepreneurship is management

(3) Validated learning

(4) Innovation accounting

(5) Build-measure-learn

The first two points show the growing understanding that entrepreneurs can exist everywhere and that it is possible to train people/organizations how to take advantage of this fact. This is imperative to understand for the enterprise. If this is accepted, there needs to be a complement to the classic R&D process, and good companies will have internal forces that can be utilized in the search for innovation.

The third point indicates that the startup should be in search mode instead of execution mode. The search may be for the product, the channel, or the customer. At each cycle of validated learning, the startup should “pivot or persevere” to minimize time wasted on a faulty approach.

A key idea of this third point is the minimum viable product (MVP). This is the minimal feature set necessary to validate an assumption about the product, market, or customer. The MVP can be used in A/B split testing to make path finding decisions.

Even though leanstartup is fairly new, especially within the enterprise sector, there are some use cases that can be valuable in creating context to the method. Each case is different in its execution and also point to different parts of lean startup.

Introduction of the Incredible Theory - The Lean Startup

You too can be Trendsetter

In this era of crowded competition, do not you think, you need a mentor, professional guidance to ensure your success. You must accept – you can not hit the bull’s eye at ease. Not many can become successful like Steve Jobs or Mark Zuckerberg. That is true!

Many More Things to Explore   

But it does not mean, it is the vertical limit of the success. You know what – there are many frontiers, zones, areas lying unexplored on this universe. Display extra ordinary courage, start something of your own, follow that dream with a passion, and who knows – you could be the next incredible thing on this planet.

For that to happen, I am sure you, and me are on the same page—you need mentorship in the form of lean startup. Yes, that is the fact. You cannot take risk to undermine the significance of the new phenomenon. It is just incredible, enabling many new comers, first generation businesses to scale up. Ultimately that is what matters in business.

Explore the New Age Business Theory 

It is really high time to bank on the benefits of the new age development – lean startup. So, are you ready for the mentorship? Why not? It pays dividend. Let me expand your knowledge base, elaborating more on the subject.

The wonderful phenomenon focuses on the two major principles, forming the core of the theory: 

MVP: Plan out a product with viability in the crowded competition. Anything that may harm the prospect of the product should be scrapped, like costing, disadvantages.   

Clear cut theory in place to define the action plan for triple A – Actionable, Accessible, and Auditable.

It is just Amazing! 

Well, I am sure the above points have clearly shown you the significance of the incredible theory, defining the success of new businesses, companies, products, services. If you have already planned a business, ponder over the historic phenomenon.

Partner with Innovify   

If you are fed up running from one corner to another in the search of a reliable organization with expertise in successfully fueling the growth of new enterprises then bank on the expertise of Innovify. We are a professionally qualified company with rich experience in successfully implementing the lean startup methodology.

Innovify | The Lean StartUp

The Lean Startup vision introduces a methodology for building a technology product. In short, a Lean Startup is a low-burn technology venture which combines the customer development methodology. In his pragmatic view on how to integrate customer development with Innovify, he advocates an approach with two teams. The cross-functional problem team continuously validates the problem hypothesis and updates the product concept.

The Pivot

A key aspect to any startup is defining the problem that it tries to solve. Customer development advocates a cross-functional problem team that intensively works with customers and continuously defines and adapts the problem hypothesis.

Lean StartUp

The systematic approach of customer development produces a series of invalidated problem hypotheses. At each iteration, the team adapts one piece of the hypothesis which includes, among others, customer segments, feature set and positioning. Each change builds on the lessons learned in validating the previous problem hypotheses.

The pivot is the incremental change to the problem hypothesis. Building on the continuous feedback of the early adopters, the pivot represents the minimal change needed to address the barriers of the hypothesis.

The vision of the startup assures a coherent direction despite many incremental changes to the product concept. In the absence of a strong vision, incremental changes may steer the product concept into a random direction.

The Minimum Viable Product

Deciding what and when to ship to customers is a key part of any venture. Due to very limited resources, startups are forced to find the minimum feature set required to engage with their early evangelists. Lean startup teams often overestimate the minimum feature set by a big margin and that the best approach is to divide that initial set down several times. Shipping the minimum set of features may produce surprising results from the customer base.

Despite a limited feature set, customer might actually be happy with the shipped features. Visionary customers are very forgiving as they not only buy into the current product but the vision of the startup. By focusing on the minimum viable product, startups avoid the mistake of building a product that nobody wants. By engaging with the target segment early on, the Customer Development methodology offers more advice on building a product for a few engaged customers instead of trying to build a product from the outset for everyone.

Innovify Lean StartUp Focused Solutions

Lean StartUp

Understanding the lean startup:

Before delving deep into the lean startup methodology, let me first define the meaning of lean startup for you. It’s a methodology, system that gives emphasis on a wide range of steps, measures, resulting in shortening the product development cycle.

The corporate centric lean startup mechanism focuses on an amalgamation of business-hypothesis driven experimentation, evolved through research and development on startups, their business challenges, funding mechanism, and market among others.

Does lean startup help?    

                                                 

Enterprises cutting across domains are leveraging this methodology to scaleup their business objectives. It works, enabling startups to gradually establish themselves as a brand!!!

Bank on Innovify’s lean startup mechanism to establish your brand:  

At Innovify, we are distinctly qualified to enable your pet startup company execute lean startup successfully.  A dedicated team with expertise in executing lean startup mechanism is helping emerging startups realize their short term as well as long term goal.  Here are some of our USPs:

•  Expert lean startup team onboard.Scalable methodology.
•  Brings in value factor in the system.
•  Market focused products and services delivery model intended for early customers.
•  Good return on investment.
•  Helping in establishing brand.
•  “Checks and Balances” system in place to identify bottlenecks, challenges.
•  Quality control department in place to ensure global quality.  

Lean StartUp

Market research on this critical subject corroborates the fact that lean startup mechanism does help startups. No doubt about that!!! Enterprises these days are cautious while rolling out any product or service. Reasons are obvious!!! In this era of stiff market competition, no business man would like to take risk which may raise questions on the very sustainability of the enterprise. That’s why enterprises are showing inclination towards lean startup.

We are professionally qualified to enable enterprises in increasing their capability in less time without compromising on quality!!! That’s we are one of leaders in lean startup implementation!!!             

“When wind blows against me, I know I can’t change the direction, but I know how to amend my sail to successfully reach my destination.”

Why ought to StartUps Leverage the Lean startup methodology???

A fast saw compactly says this all:  “Go by the wind. Otherwise take into account prepared for its repercussions”!!! That’s beyond question precise within plenty of eventualities. Totally applies on enterprises too.

The emergence relating to leanstartup methodology has become the game changer meant for several startups, giving the newest lease relating to life to its corporation objectives. Dynamic market dynamics need customized methodology for you to push your name on the next level additionally to surmount the big range connected with challenges, like title positioning, per in conjunction with post sale challenges, future.

Understanding your current significance of lean startup throughout building the startup whole

A comprehensive research was carried out on different business processes integral to the smooth operation of startup enterprises, including sales and marketing, customer care, finance, HR, and IT among others before formulating a dedicated lean startup methodology. Why? It was necessitated as startup’s challenges; goals are different from established brands.

The startup crafted lean startup methodology is typically customized relating to startups. Let’s focus at many associated with its significance:

•          Addresses challenges, rather like existing on with close at hand.

•          Scalable methodology.

•          Brings throughout code issue within the system.

•          Market specific suppliers starting model meant for early customers.

•          Good come in low investment.

•          Facilitates throughout establishing a whole.

"Checks and Balances” system is also an integral part of the lean startup methodology intended to identify bottlenecks, challenges.

The strategic hypothesis recommends that startups stay lean to remain in competition. Lean here refers to strong enterprise qualities-remain agile, draw lessons from mistakes, bring change immediately and stay fit for market competition.

Research on lean startup methodology indicates that for a startup, there are only two priorities-establish as a brand and enough money in the account to run the business successfully.

At Innovify, we are distinctly qualified to enable your dream startup company execute lean startup successfully. A dedicated team with expertise in executing lean startup mechanism is helping emerging startups realize their strategic goals.