If you have a startup idea or are already developing your startup - you must read this book.
The Lean Startup is a new approach that is being adopted across the globe, changing the way companies are built and how new products are launched.
Here are 6 conclusions we have taken from the book.
Management and startups should go hand in hand
Nowadays, there are so many startups on the market, but due to a lack of resources, few good managers. Management is a very important but sometimes overlooked part. The best way to make sure your startup succeeds is to develop management skills in yourself!
Managing a business plan is like trying to control a rocket.
After the launch, you can’t change your destination. The startup should be like a car, with the ability to change course quickly. Energy has to be divided correctly to make sure it isn’t wasted. Many people create business plans in 2-3 weeks. The business plan is not so important, instead, you should focus on the product.
Launching a bad product it’s not the worst thing you can do. Launching a product that no one needs is worse.
Here, the author of “The Lean Startup”, Eric Ries draws on his own experience. Creating a startup is very different from how “classic business” operates. Traditionally, people think that everything must be done perfectly, with no inaccuracy. You should act in another way while running a startup. Instead of constantly updating and improving your product - choose to launch it earlier, rather than later. Otherwise, you may find out that your product does not meet demand and you will lose a lot of time and money. Launch and then improve!
Don’t expect users to recommend your product if it hasn’t reached the level “awesome”.
The book’s author had a social game startup (IMVU), which gave users an opportunity to create their own avatar and communicate with others. The target audience was mostly teenagers. Eric thought that teenagers would want to invite their friends to communicate there. However, someone of the users said: ‘Why should I recommend it to my friends before I make sure it’s awesome?’
People will recommend something that they will consider “awesome”. Improve your product constantly.
System “analogs & anti-analogs”
When the iPod was being launched on the market, the creators were analyzing the analogs.
One of them was a Sony Walkman, which was in high demand. By understanding that portable music was a trend, Apple was confident in its success.
About the anti-analogs - In the United States market there was a website-library called Napster, on which everyone could download any music for free. Due to this, there were some doubts about whether people would buy music. Apple analyzed everything and found a solution. The company created an enormous music library, which the free service didn’t have. Later, Napster closed because of copyright claims.
Always before launching, analyze analogs & anti-analogs. It will help you find breakthrough ideas that allow your startup to grow.
The story of the multi-billion company, which tested demand in 2 phases.
Here we are talking about the American site Groupon, who sells discount coupons for various entertainment events. Here's what they did:
Started a personal blog
Yes, they started a blog just to tell people about themselves and get feedback. When you create a startup, you need to tell the world about it. Most successful start-up companies have a blog.
Sent 500 pizza coupons by mail
This was done to find out how many people would be interested in their offer and go for pizza. On seeing the excellent demand they started developing the company. Well, now it is one of the largest American sites.
So, folks, before launching your startup, analyze your direct and non-direct competitors, and do not try to make the perfect product before you launch - go with the car before the rocket to Mars :)