Lean Startup Practices

Lean Startup Practices

Tips For Startups

A startup can have a very high failure rate. People commonly believe that this rate stands at 90%, but research by Cambridge Associates, a global investment firm based in Boston, puts it lower. According to them, the rate is closer to 60%, although it did spike to 79% at the time of the dotcom crash of 2000.

How can a startup increase its chances of success? Eric Ries, the author of The Lean Startup, a book aimed at the promoters of new ventures, provides some important guidelines.

Customer Feedback is Crucial

Don’t focus solely on your product. Many new firms make the mistake of spending months or even years in perfecting their manufacturing process.  Realizing very little that they are developing a product that nobody may want to buy.

The correct approach is to get customers to try your product as soon as possible. Obtain their feedback and use this information to make the required modifications. This will be a more likely approach that  you will produce paying customers.

Learning to Pivot your Startup

A Lean Startup by Howard Wool
A Lean Startup by Howard Wool

What if nobody is interested in what you have made? Your customers may tell you that they are simply not interested. If this happens, it may be time to pivot.

Blue River Technology, a firm that started off as a manufacturer of robotic lawn mowers did exactly that. They received customer feedback that their product did not have any demand.  This lead them to switch over to making robotic weed killers for farmers.

The company executed a successful pivot and rapidly established itself in this new customer segment.

An Essential tool for your New Venture

It is essential that you identify problems in your business strategy as soon as possible. The Lean Startup technique allows you to do this very well. By using its methods, startups can increase their chances of success.

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