Lean Startup, What are the Principles?

The lean startup method offers a scientific perspective for setting up and managing startups. When the product reaches the market launch stage, a customer base that knows and knows the product is formed.

Lean Startup, What are the Principles?

Eric Ries, who introduced the lean startup method, says: “A startup can learn to be successful. So success is something that can be learned and taught. "

The lean startup method offers a scientific perspective for setting up and managing startups. It allows to deliver the targeted product and service to the market more quickly. The lean startup method teaches how to manage a startup and what kind of moves should be made when. It is a principle for new product development.

Many startups are set up with a product or service idea that people might be interested in. It takes months, sometimes years, to make the product perfect and final. In this process, the product is developed, but the customer cannot see the development process of the product. The customer only sees the final product. This situation causes them to be deprived of suggestions, requests and feedback from customers. Because, during the development of the product, the opinions of the customers about their wishes and needs were not asked. In other words, if the product resulting from a one-sided conversation without dialogue is not liked by people, the startup goes bankrupt.

The lean initiative approach advocates that companies constantly and regularly test their products, thus making various improvements in the product according to the comments and suggestions received.

Thus, when the product reaches the market launch stage, a customer base that knows and recognizes the product is formed.

It is necessary to develop a product that works at a minimum level.

MVP is the basis of the lean approach method. There is a minimum viable product.

MVP predicts to develop a product, to measure its performance continuously, and to make new regulations at the end of this measurement.

First of all, you should identify the problem and develop a product / service that works at a minimum level to solve this problem.

In this way, you can see more clearly at which points the product needs extra development.

After creating the product that works at a minimum level, you can make people use this product, see potential problems and deficiencies personally and make the necessary improvements.

Startups should also use the "5 Why" method at this stage. Here are five simple questions about what the product does and how it solves the problem. After measuring the performance of the product and learning the points that need correction, the startup sees more clearly whether this product is suitable for the business model. If launching this product on the market does not seem to provide the company with the expected gains, it is necessary to either switch to another product or make radical changes to the existing product. Making drastic changes allows you to retest the hypothesis and strategy that the product will cure a particular wound.

Tested Learning Process (Validated Process)

The criterion for progress in production is to produce high quality products. The progress criterion for lean initiatives is the tested learning process.

So let's talk about it like this: When an entrepreneur adopts a tested learning process, product development time is dramatically shortened.

Apart from focusing on the product that customers want and want to buy ...

Apart from spending time on a product that is not clear whether it will be demanded by customers for months or even years ...

The second scenario is the main reason for many companies to raise the bankruptcy flag. Therefore, entrepreneurs should take very small and regular steps while developing products and planning.

5 Basic Principles of Lean Enterprise

Eric Ries, who created the lean startup method, says that there are 5 basic principles of lean startup:

1. Entrepreneurs Are Everywhere
There are many types of entrepreneurs and startups. There are numerous opportunities for entrepreneurs to take advantage of and start a successful business.

2. Entrepreneurship Means Management
Startups need management like a normal company. However, companies that adopt the lean initiative are more specific in this regard. These companies must have a flexible and learning-oriented management.
3. Test-Tested Learning Process Should Be Attached
Lean startups learn what the target customer wants step by step in the process and create a product they want to buy. It offers the most ideal product to the market after trial and testing.

4. Innovation Record Is An Important Issue
Lean initiatives keep a detailed record of their tests and analysis. As a result of the tests, he sees which product and service performs better. More attention is paid to the distance traveled in terms of innovation rather than the amount of product created.

5. Produce-Measure-Learn
Lean startups offer the minimum working product to customers. Then, various improvements are made on the product according to the tests carried out by the company and the feedback, comments and suggestions from the customers. How the product is accepted by the customer is measured. If the comments and suggestions received are positive, this version is decided and the product is made even better.