The Lean Startup | Full Summary | How Constant Innovation Creates Radically Successful Businesses

Sign up: https://www.influencersampleclub.com/ #booktube The Lean Startup by Eric Ries | Book Summary | My MBA Journal #booktube Have a strategy - but be willing to adapt it according to the data. A start-up’s management team should try to maintain an overview of their situation and keep their company steered toward its overall goal. Hence, they need to find the right metrics to measure whether their journey is leading them in the right direction. The main goal of any start-up is to find a business model that is profitable and sustainable. You’ll need to do this through validated learning Come up with a hypotheses - and then test it. For example, people like to pay a monthly subscription to watch ad-free movies and TV programmes. Build a prototype and head out and talk to real customers. Zappos: started with the hypothesis that customers wouldn’t mind buying shoes online. To test their idea, the founder took photographs of shoes in shoe stores and displayed the photographs in a fake web shop. When people actually tried to buy the shoes online, Zappos saw that their hypothesis was valid. The leap-of-faith assumptions: test your value and growth hypotheses. Part of developing a product is the leap of faith: you believe that your product will be successful - but you have no proof. To get the proof every founder should formulate and test two fundamental assumptions: The value hypothesis AND the growth hypothesis The value hypothesis assumes that a product will be useful to its customers. Growth hypothesis states that the product will not only appeal to the small group of early adopters but will be useful to a wider audience. Both assumptions need to be tested as soon as possible. Only if they can be validated is it worth investing the time and effort into developing the product. Develop a minimal viable product to test your idea in the market. The most effective way to get real-world customer feedback on your idea is to create a minimal viable product (MVP) The MVP can be a simple bare-bones prototype of your product, or even a smoke test: pretend to sell a fake product - or share a video, which is what the founders of Dropbox did, sharing how their backup cloud software works. This is the first step in finding out whether there’s an actual demand for their product before they start building it. Build, measure, learn – as fast and as often as possible. So you’ve got a simple prototype / video, or idea that you’ve presented to potential customers. You’ve gathered feedback. You now need to measure interest in the product; for instance, how many people clicked the purchase button and tried to buy shoes from your fake web shop. When measuring, make sure you don’t just look at the numbers but also talk to your customers. If you want to understand your data, you should learn about the individual impressions and opinions of your customers as well. What you learn in one cycle should then be used to conceptualize and build a new, optimized product, which brings you into the next Build-Measure-Learn cycle. This process is then repeated until you find a sustainable business model. You also need to make sure you’re going through each Build-Measure Learn Cycle relatively quickly - in order to improve and get to that sustainable business model. When developing and improving a product, start-ups have to distinguish between value and waste - even if the founders or engineers think that a feature is the bee's knees - it’s waste if customers just don’t need it. Valuable features are those that help the company attract more customers or increase its revenue. Ries shows that any start-up can test every possible change before actually implementing it. For example, your website colours, click-through rates on landing pages - Have two versions of everything and track customer behaviour. Any change you wish to make to your product should be tested with this semi-scientific approach before you actually implement it. Don’t be afraid to pivot until you find the right business model. What is pivoting? The core assumptions behind the start-up have changed, and therefore new hypotheses need to be tested. Customer feedback shows you may need to shift the core value or your product; pursue a different customer segment or; changing your main sales channel. Say one of your core metrics is your recommendation rate. To understand how it advances, you should examine the following factors: On average, how often did customers who signed up six months ago recommend your product to their friends?; What about customers who signed up four months ago?; Two months ago? ------ The Lean Startup lean startup eric ries eric ries lean startup The Lean Startup summary Entrepreneur Book summary startup The Lean Startup by Eric Ries Lean Startup Book Lean Startup Book Review Lean Startup Book Summary Lean Startup PDF Lean Startup Book PDF The lean startup review the lean startup audiobook lean startup audiobook lean startup summary