The lean startup methodology is a new approach to business development which can be applied to any new enterprise, from tech start-ups to corporate in-house initiatives. Like lean manufacturing, which was pioneered by Toyota in the 1980s, lean startup is based on eliminating waste, particularly during the product development stage. The goal of lean startup management is to produce a successful launch without requiring a “perfect” product, a great deal of outside funding or elaborate business plans.
Lean startup is a completely different approach from traditional management practices. Rather than planning, it relies on experimentation, testing and customer feedback to tailor a product to the target audience. Lean startup is all about learning more quickly what works and discarding what doesn’t.
Lean startup is becoming a more mainstream practice, because it works for today’s quickly changing, global business environment. Instead of five-year plans and projections that are nearly impossible to forecast, lean startup begins with an idea or vision and is based on the following principles, as established by Eric Ries, author of Lean Startup:
Lean startup management reduces development cycles, lowers risk, reduces costs and helps companies deliver products and services their customers actually want. By eliminating waste and relying on testing and customer feedback, the lean startup methodology can help entrepreneurs everywhere – in every industry – enjoy more successful launches, whether they work for themselves or someone else.
New ventures continue to fuel the 21st century global economy, and with lean startup management, more entrepreneurs can find success, grow their ventures, hire more people and spur new development.