What is a Lean Startup?

6 min read

What is a Lean Startup?

Launching a new startup – whether it’s a tech start-up, a small company – has constantly been a hit-or-miss proposal. According to the traditional approach, you write a service plan, pitch it to investors, find a team, release a product, and begin selling as hard as you can. And somewhere in this series of events, you’ll most likely suffer a deadly setback. According to Statista, 75% of all startups fail. However, recently a crucial countervailing force has emerged, one that can make the process of starting a business less risky. It’s an approach called the “lean startup“.

The core

The Lean Startup core concept is to prevent waste of time and resources when developing a new product and services. The term Lean startup was coined by Eric Ries, in a book named the same. The important thing is that lots of startups begin with a new idea that they think people want. Then, they spend several months, sometimes years, refining this product without ever showing it, even in its most primary type, to prospective customers.

When they fail to earn money consumers, it is generally due to the fact that they have actually never talked with potential customers and heard whether the item was of interest to them or not. And when consumers finally check the item and it doesn’t fulfill their needs as they’d wish, the startup passes away. It is a sad and exceptionally common journey. And the objective of Lean Startup methodology is specifically to avoid this journey.

Lean startup Meaning

The word “lean”, here, has been applied by Eric Ries, Harvard Service School scientist, towards avoiding waste. It involves recognizing and removing waste in all the processes, from research study to production.

In other words, in this methodology, the company begins by getting to the marketplace to ask the opinion of prospective clients about all components of the business design: product functions, price, circulation channels, and financial methods.

With this data collected, the startup creates a minimum viable product (MVP) and requests consumer feedback as quickly as possible. Based on the responses obtained, it goes for brand-new versions and changes till it finds the perfect product.


How to Execute Lean

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It’s required to deal with manners to systematically identify the waste in every and every action of production, sales, and after-sales. That stated it’s important to reduce or remove

First: before launching your item, instead of combining a long report (business Strategy), you are going to use Canvas to build your organization model. This canvas will show how the business creates worth for its customers.

Second: you are going to test your hypotheses with the help of customer development. You are going to speak to possible users, buyers, and partners to get their viewpoint on any and all elements of the business design. To get that, you are going to have your MVP constructed.

Third: you are going to finally embrace nimble development, where there is no wild-goose chase or resources, as the product is established in an iterative way.

Notification that whatever has to do with engaging with your clients, testing hypotheses, and repeating during the procedure– all of that before introducing your product on the marketplace.


Lean Startup Principles

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The Lean Startups approach can best be described as a set of principles and viewpoints, instead of guidelines or steps, and these concepts are typically self-evident; there are lots and great deals of stories from the past years of companies who have actually utilized them to fantastic impact. Here they are:

  • Entrepreneurship is about management. Your startup is not just an item, it needs management. A new type, created specifically for your context of uncertainty.
  • Validated learning. Startups must build a sustainable business. Your knowledge can be clinically confirmed by experiments that allow you to evaluate every component of your company.
  • Innovation accounting. Yes, you also need to concentrate on dull things: how to determine progress, how to set goals, how to prioritize work. This requires a brand-new type of accounting, particularly for startups.
  • Continuous deploy. The group’s work must be updated routinely for the end consumer. You need to construct a brand-new feature and make it offered in a short time to get a much faster examination.
  • A/B testing. Whenever possible, make more than one version of the product readily available on the marketplace. This way, you have feedback on how customers react to different product models. From the reaction to these different possibilities, you may discover what the user chooses.
  • Actionable metrics. Metrics that, when triggered, provide information necessary for the company to make decisions about the business.
  • Minimum Viable Product  (MVP). It is the minimum version of a brand-new product, with the function to catch more information and learn more about the requirements and expectations of the end consumer. That avoids efforts to develop resources that are unneeded or boring.
  • Pivot. It is a complete modification in the course of an item, a new strategic hypothesis that requires a brand-new MPV to be checked.
  • Build-Measure-Learn. An essential activity of a startup is to turn concepts into products, determine how consumers respond, and find out if something needs to be changed or maintained. Every successful startup should accelerate this build-measure-learn cycle.

Following the above principles, our clients also used the Lean Startup methodology. For instance, one of our clients convinced himself that his idea is genius, however, we wanted to be sure that customers will also like it. The client successfully solved this problem with the help of the Design and Discovery phase.

Do you have difficulties while figuring out where to start developing a startup? If so, please contact us and we will help you prioritize the development process correctly, saving you time and budget

Build-Measure-Learn Cycle

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The Lean Startup cycle, referred to as Build-Measure-Learn, highlights the speed of a group or company to develop an idea, build a minimally practical product, measure its effectiveness in the market, and gain from that experience.

To put it in a few words, it is the cycle to change an idea into a product, determine the reaction to it, and choose if it is a good idea, that must remain, or a bad idea, that must be disposed of. The cycle creates innovation, as the quick iteration permits teams to determine a practical way to adjust the item, in order to enhance and enhance the business design towards success.

Differences between the Lean startup and the traditional organization plan

Strategy. Lean startup is based on hypotheses and utilizes a canvas to be developed. Traditional is based upon execution and makes use of a company plan.

Speed. Lean startup seeks to be quick and utilizes data that suffice for action. Standard operates gradually and just with total information for action.

Product Development. Lean startup experiments hypotheses on the marketplace and gets feedback from clients during the procedure. Conventional prepares the whole item for the market in an extremely linear plan.

Failure. Lean Startup pivots, offering new possibilities, functions, and items. Conventional abandons the project and, in some cases, fires groups or executives.


What Does It Mean to Be a Lean Startup?

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If you want your startup to utilize the lean method, this suggests that you need to focus your business around the customer. If you have an idea for a product or service, you will not begin by developing a service plan for your company. Rather, you need to begin to create a minimum viable item. Keep in mind that clients will see the development process first-hand, which isn’t constantly a comforting sight. However, this can help you enhance customer commitment. The minimum feasible product that you produce should just have the most basic features that will allow consumers to actively engage with the product.

Once you have actually produced an MVP, the next step of the process includes supplying it to a little subset of your target audience. If these people don’t like an item that you put out, it will be very difficult for you to acquire an enduring consumer base. As consumers utilize your MVP, you should focus on acquiring their feedback, which can then be utilized to make changes to the item and ultimately make it more feature-complete.

When you become a lean startup, you should expect to experiment regularly. While the outcomes may not always be favored by your consumers, downsizing modifications must be easy with the iterative approach that you’re taking to product advancement. In time, you ought to have the ability to develop a product that’s ready to be released on the market. This is an extremely fast method of item advancement that should assist you to save cash. However, it can be stressful as you react to the feedback that you get from test clients.


Lean startup vs Stealth Startup

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Lean mode functions in direct contradiction with another popular start-up philosophy: Stealth startup. A substantial part of a lean start-up is the concept of taking your minimum viable product (MVP) to market as quickly as possible so that you can discover what’s working – and what isn’t. That’s the initial step in the iteration cycle, which is developed to get your startup to product/market fit and viability as soon as possible.

The greatest downside of a stealth mode startup is that it’s really hard to discover product/market fit without bringing the product to the market. For adherence to lean start-up, stealth mode is the reverse of what you should do if you want to create an excellent product.

However if you’ve somehow unequivocally determined your product/market fit some other method– and I suggest in fact figured it out – then sure, choose stealth mode. However do not be too stunned if when you actually bring your product to market, the fit isn’t rather as tailored as you’d like.

Read: Everything you want to know about Stealth Startup


Lean Startup Benefits


  • More efficiency. By focusing on what truly matters, the company’s advancement will take place quickly and directly. Therefore, productivity grows while conserving money and time.
  • Expense reduction. When waste is removed, expenses are decreased. Since you can eliminate steps that don’t add to sustainable advancement, hence preventing expenses and increasing earnings.
  • Greater proximity to consumers. When the build-measure-learn cycle is well used, customer needs and expectations will be much better understood. This will supply a higher intimacy between them and your brand name. And that is the first step to get faithful consumers.

Why Lean Is It Important?

It is very important to know about the lean startup approach due to the fact that it can be the basis for your whole company. Whether you pick the conventional startup method or the lean method, understanding the differences between these two techniques ought to make it much easier for you to determine which technique would best fit your new startup. At Jetruby, we can help supply you with the proficiency that you require to utilize the lean startup method.

Let’s summarise 

Every lean startup’s development process differs, but all of them will go through the 3 stages: solution fit, product/market fit, and growth stage.

The first stage is about verifying the problem you’re solving. Do consumers really require a solution? Would they pay for it? When you verify that, you can go to the most important phase, finding the product/market suitable for your lean startup.

In this phase, you should validate your MVP and your business model. Before it, you will have gone through a number of research cycles. Your future product will actually be solving the customers’ issue, and you’ll currently be making some revenue. After you see that your start-up is running, there is a need for your product in the market and the clients are using it, it’s time to scale and grow.

You’ll need to secure funds, use data to identify the very best marketing and sales channels, and continuously deal with improving your item. To learn is to grow, after all.

In order to successfully go through all three steps, we developed the correct algorithm of actions, which we call the Design and Discover phase. This is a development methodology that allows you to launch a startup without time and cost loss. Sign up for a free consultation with our experts!

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