An Startups is at its core a catalyst that ideas converted into products. There customers interact with these products, they create Feedback and data. How does management work in lean startup metheode?

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How does a startup work?

As in the meantime clear likely to be, by focusing on validated learning processes we can avoid much of the waste that plagues startups today. As with lean manufacturing, this saves Background, where and when to Energy makes optimal use of time and Money.

The feedback is given both on a qualitative level (e.g. what they like or dislike) and on a quantitative level (e.g. how many People use the product and find it useful).

Learning as a result of experiments

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The products that make a startup are, in reality, experiments; to learn how to build a viable business model is the result of these experiments.

For startups, this information is more important than money, awards or press reports because it can influence and shape the ideas that emerge from it. This build-test-Things to Learn-Feedback loop is at the heart of the lean startup model.

Specialists - caught in the feedback loop

Many people have received professional training that focuses on a specific element of the feedback loop. For example, engineers learn how to design their designs as efficiently as possible. Executives are master strategists and tinkerers at the white board.

Entrepreneurs also often focus their energy on individual aspects: they make every effort to develop the best product idea or the best possible starting product, or are almost compulsorily dealing with data and operational parameters.

The gold standard

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The fact is that none of these activities on their own promotes entrepreneurial thinking and acting. Real entrepreneurs focus their energy on reducing the total time it takes to travel through the feedback loop.

This is the gold standard in managing a startup. We examine each and every element of this build-test-learn feedback loop. We want them Significance of the learning processes as a yardstick for the Success to explore a startup.

Advance of trust and growth hypotheses

To this scientifically based Method To apply it to startups, we need to identify which hypotheses need testing. I refer to the high-risk elements of a startup business plan that everything depends on as leap-of-confidence assumptions.

The two most important are the benefit and the growth hypothesis. They generate the variables that allow fine tuning of the growth motor. Each iteration is an attempt to give gas to see if the engine is starting.

From the idea to the product

As soon as it runs smoothly, the process is repeated in order to be able to shift from one gear to the next higher. Once these assumptions involving leap of faith are identified, the first step is to so fast to get into the build phase with a minimally functional product (MFP) as possible.

The MFP is the product version that enables a full run of the build-test-learning feedback loop with a minimum of effort and development time.

From prototype to beta phase

The minimally functional product is still missing many features or Features, which may prove important later. An MFP too draw up however, requires additional work:

We must be able to measure its impact. For example, it would be nonsensical to build a prototype, which is assessed by engineers and designers exclusively with regard to the quality of the company's internal characteristics.

It depends on the customer opinion

We must also in direct Contact Approach potential customers to assess their reactions and, if necessary, to make the prototype palatable to them.

When we enter the measurement phase, the biggest challenge is the decisionwhether the product development efforts bring real progress.

If we produce a product that nobody wants, it does not matter if we remain in the time and budget. An effective quantitative approach, which shows whether our learning and fine-tuning activities bear fruit, is the so-called innovation balance.

Milestones in the learning process

The innovation record allows us to create milestones in the learning process, a Alternatives to the classic milestones in the realization of corporate and product goals.

These milestones in the learning process are important not only for entrepreneurs to accurately and objectively assess their progress, but also for the executives and investors that entrepreneurs face Rede and have to answer.

Correct the course in time

However, not all parameters are carved out of the same wood and the dangers of facade metrics are soon visible which, unlike the application-oriented parameters, do not contribute to the analysis of customer behavior and the balance of innovation.

The most important element is and remains the course correction. As we go through the build-measure-learn feedback loop, we face the toughest question an entrepreneur faces: do we keep the original Strategy change or keep.

Early warning systems for change of course

If one of our hypotheses turns out to be wrong, then it's time to start a change of course and come up with a new strategic hypothesis. The lean startup method builds capital efficient Companys Because startups recognize earlier when a change of course is advised, and thus waste less time and money.

Although we speak of a build-measure-learn feedback loop because the activities happen in that order, ours does Planning in reverse order:

Products arise from learning processes

We explore what we need to learn, find out what needs to be analyzed and validate learning processes, and then determine what a product we need to develop in order to carry out experiments and achieve this result.

All techniques are designed to minimize the total throughput time through the build-measurement-learning feedback loop.

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