Why the Lean Start-Up Changes Everything

Why the Lean Start-Up Changes Everything

1. Fallacy Of the perfect business plan

   • After watching many startups
     • Business plans rarely survive first contact with customers
     • Start-ups are not smaller versions of large companies.
     • Theres no requirment for 5 year plans to forecast. (Waste of time)
   • Lean Method key principles:
     • Founders summarize the hypotheses in a a business model canvas
     • Agile development eliminates wasted time and resources
     • Customer development to test their hypotheses. Customer feedback

2. Declining Popularity of Stealth Modes

   • Stealth Mode:
     • To avoid alerting potential competitors to a market opportunity
   • Lean start-up methodology makes those concepts obsolete
     • Constant feedback yields better results

3. Creates an inovation, entrepreneurial based economy

   • Using lean methods portfolio of start-ups will result in fewer failures than using traditional methods
   • Growth in the of start-ups constraints
     • High cost of getting the first customer
     • Long technology development cycles
     • Not willing to take risks
     • The concentration of real expertise in how to build start-ups

4. Definition

   • "A temporary organization designed to search for a repeatable and scalable business model."

5. Favors

   • Experimentation over elaborate planning
   • Customer feedback over intuition

6. Instantaneous availability of information

7. Armando Gómez Velasco Pernas A01204798