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Disclosure & copyrights: Text originally from: “Lean Startup: Starting a company quickly, risk-free and successfully” (2014), published by Münchener Verlagsgruppe (MVG), reprinted with the kind permission of the publisher.
By Eric Ries (More) • Last updated on October 04.02.2023, XNUMX • First published on 31.01.2015/XNUMX/XNUMX • So far 8497 readers, 3106 social media shares Likes & Reviews (5 / 5) • Read & write comments
Henry Ford is one of the most successful and famous entrepreneurs of all time. The Idea The management of the company is closely linked to the history of the automotive industry, since its beginnings, and therefore it is an ideal one metaphor for a startup.
Before Henry Ford became a corporate executive, he was an engineer. He worked day and night in his garage on precision instruments that allowed the cylinders of the engine to move.
A car with an internal combustion engine is powered by two important and completely different feedback loops. The first one is inside the machine.
Every explosion, no matter how small, in the cylinder creates the driving force to turn the wheels, but also triggers the next explosion. If the timing of this feedback loop is not precisely controlled, the engine will stall and stall. Startups have a similar engine, the growth engine.
their respective markets and customers are of different types: A toy manufacturer, a consulting firm and a factory do not seem to have much in common at first glance – apart from the growth engine, which is the same for all three.
Every new product version, every new product function and every new marketing program is an attempt to improve this growth engine. But, as with Henry Ford's experiments in the garage, not all the changes prove to be improvements.
New product developments only take place sporadically. Much of the time in a startup is spent developing product, Marketing or to optimize operational processes. The second important feedback loop in an automobile involves the driver and the steering wheel.
The Feedback is so immediate and automatic that we rarely think about it, but it is precisely this steering process that distinguishes driving a car from other modes of transport.
If you drive to work every day, you probably know the route in your sleep. But if you were asked, Eyes to close and explain exactly how to get into Office come - not the distance, but every single turn of the steering wheel and every foot movement on the pedals - you would find that you are not succeeding.
The choreography of driving is incredibly complex when you "downshift" to think about it. Rocket ships require exactly this form of calibration in advance.
You must be provided with high-precision work instructions prior to maiden voyage: programming that regulates every thrust, every missile firing, and every change of direction.
The slightest error at the time of the stack could have catastrophic consequences for 1000 miles later.
Unfortunately, one could conclude from the business plans of many startups that they want to launch a rocket ship instead of driving a car. And that is a crucial flaw in the Company-Strategy.
Many Boy Companies and start-ups lay all of them steps and expected results down to the smallest detail. And like the planned launch of a rocket, they are programmed so precisely that even the slightest miscalculation can have catastrophic consequences.
A company that I've worked with predicted a new product to have a significant customer acceptance - in millions. Boosted by the spectacular launch, the company implemented its plan precisely.
But it had on account made without the innkeeper – the customers weren’t exactly keen on it. Worse still, they had invested in extensive infrastructure, hiring and technical support to handle the expected flow of customers.
When that didn't happen, the company leaned so far out the window that it wasn't able to adjust in time. It had itself successfully, in good faith and rigorously “programmed to fail”, clinging to a plan that had numerous misconceptions and weaknesses.
The LeanStartup method shows you how to start a startup. Instead of much more elaborate plans based on unsecured assumptions, you can make continuous adjustments with a control tool, the so-called Building Test Leads Feedbackback Loop.
This tax process conveys that Background, when it is time for a radical turn, a course correction, and when to stay the current course.
As soon as our engine comes on the road, the LeanStartup method offers the possibility to transfer the business model to a larger dimension at maximum speed.
You always have one during the control process klare idea of that Objectivethat you want to achieve. If you drive to work by car, don't leave your vehicle behind because you have to take a detour or made a wrong turn. She focus ready to arrive at your destination.
Startups also have a “true North” in mind, a long-term goal: to create a company that thrives and the Welt changes. This requires a vision.
To realize this vision, they employ a strategy that includes a business model, a product map, an attitudes towards business partners and competitors, and certain perceptions of potential customers. The product is the end result of this strategy.
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Eric Ries founded the lean start-up method and made it popular. He is the author of the startup blog StartupLessonLearned.com and co-founded IMVU, a gaming and entertainment network. In 2007 Business Week named him one of the best young entrepreneurs in the technology sector. In 2010 he became entrepreneur-in-residence at Harvard Business School. He has also co-written many books and continues to be a founder, for example as a senior software engineer at There.com. More information at theleanstartup.com All texts by Eric Ries.
Helpful, good further tips. I'm looking forward to reading more.
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