"Lean Start-Up"

"Lean Start-Up"

1. The Fallacy of the Perfect Business Plan

   • . Business plans rarely survive first contact with customers.
   • No one requires five-year plans to forecast complete unknowns.
   • Start-ups are not smaller versions of large companies.
   • Summarize their hypotheses in a framework
     • Approach called customer development to test their hypotheses.
       • Initial planning - minimum viable product - customer feedback
   • Conventional wisdom
     • Every founder must create a business plan

2. Stealth Mode’s Declining Popularity

   • The lean method is now being taught at more than 25 universities.

3. Creating an Entrepreneurial, Innovation-Based Economy

   • In the past, growth in the number of start-ups was constrained by
     • High cost of getting the first customer and of getting the product wrong.
     • Long technology development cycles.
     • people without an appetite for the risks in founding or working at a start-up.
     • The structure of venture capital industrys.
     • The concentration of real expertise in how to build start-ups.
   • Search for a business model

4. A New Strategy for the 21st-Century Corporation.

   • Simply focusing on improving existing business models is not enough.
     • Corporations need to keep inventing new business models.