Definition and the Main Purpose of Lean Startup 

Lean Startup

Definition and the Main Purpose of Lean Startup


Developing a startup is a nerve-racking process. A startup is burdened to offer unique products and services, yet a startup must always be adaptive in following the market demand. Back in the day, the journey of developing a startup began with creating a business model canvas, doing a pitch deck for investors, hiring employees to create a solid team, and finally diving into the market. 

The process mentioned above may sound neat and systematic. Unfortunately, 90% of startups fail in 2019 even by following those steps. The traditional method of developing a startup is too rigid and makes adapting to the market condition more difficult. Thus, a startup must always be agile and flexible. A startup must be able to evaluate its plan and fix the broken pipeline. 


What is a Lean Startup?

In this modern era, many startups have begun to abandon the traditional method and adopt a lean startup methodology. Some examples of companies adopting this method are Dropbox and Toyota. Eric Ries introduced the lean startup methodology in his book “The Lean Startup in 2011. According to Harvard Business Review, lean startup is the process of building a business that is based on experiment, focuses on customers’ feedback, and is adaptive. 


Characteristics of Lean Startup


1. Experimental Business Plan

The first characteristic of a lean startup is the experimental business plan. In this methodology, a startup can skip the long process of building the “perfect” product prototype. In this method, the startup can trust their hypothesis on the early planning and create a simple business model canvas. In this step, the startup can implement the MVP (Minimum Viable Product) method, offering a product with the least cost yet acquiring maximum customer feedback. 

2. Customers’ Oriented

After developing a product, in the lean startup method, a startup can test prototypes for the market and evaluate the flaws along the way. A startup will continuously ask for feedback from their customers and measure their satisfaction with the said product. A startup will repeat this process until the product receives a positive response from the market. 

3. Adaptive and Responsive

The lean startup method is responsive and adaptive (agile). A startup can move fast with this method and not just stick to one process. A startup can develop a product quickly without having to overthink, acquire feedback from customers, analyze, and then repeat the process continuously. 


The Main Purposes of Lean Startup


1. Reduce the Risk of Failure

In the traditional method, a startup must spend a lot of money to develop the “perfect” product before testing it on the consumers. However, the MVP method can help a startup to understand their consumers quickly with a minimum effort. Thus, a startup can reduce the risk of failure. 

2. Quick and Iterative Process

The product development cycle of the lean startup method is relatively faster than the traditional method. A startup can quickly decide to continue or abandon its product development if the product does not receive a positive response from the customers. Thus, a startup can find its product-market fit quickly. 

3. Efficient Financial Allocation

A product development process takes a long time and costs a lot of money. However, the lean startup method can help a startup allocate its funding efficiently. Instead of burning money on unnecessary features on the product, a startup can focus on essential and exciting aspects of their products that the consumers like. 


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Gear up helps your startup choose the correct business model, acquire funding from venture capital, and accelerate your startup’s growth. Gear up is a startup brainstorming partner in Indonesia that provides one-on-one and catered support for the chosen startups. Join us to begin your startup journey.

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