When you are starting up a new business, with a startup methodology, it’s best to do things right straight from the start. In 2008, entrepreneur, Eric Ries developed the LEAN method of creating a startup, and it’s a great methodology. Ries came up with this because he wanted to create something that would shorten product development cycles and create continuous innovation in startups.
Ries came up with this idea through failures. His first startup, Catalyst Recruiting, ultimately failed because it was not agile enough to recover from the initial product launch to give their customers what they wanted. Ries experienced a similar failure with There.com, giving him plenty of learning material from his experiences.
Ries took a look at something called LEAN manufacturing, which was developed by Taiichi Ono in the 1950s. This particular system of manufacturing helped to both reduce waste and increase productivity with a few methods, one of which being quality assurance checkpoints placed in key parts of the manufacturing process. The lean startup process takes this philosophy and moves it into the startup atmosphere.
The basic gist of a LEAN startup is that companies must first create an MVP or minimum viable product – the product with the least amount of features needed to function correctly – and then test it and see if customers can actually use it. Like Ono’s many quality assurance checkpoints, the customer feedback then informs the future adjustments to the product, creating a continuous feedback loop. This helps to reduce waste created by companies who put too much effort into launching a product with many bells and whistles.
Using the LEAN startup method can really help you to save money and be more efficient.