When you start a company the general process of initialization involves preparing a business plan, investment, formation of a team, product design, product production, and finally release of the product into the market, which is followed by intensive marketing to sell the product. This is the methodology that has been followed for decades. If you developed a product that people liked, your company faces a boom else it goes through a difficult situation. Such risk can be eliminated by following the lean startup methodology.
What Is Lean Startup Methodology?
The lean startup methodology was developed by Eric Ries in 2011. It focuses on experimenting with product release, getting feedback from customers, and only then continuing with further production of the product. With every response from the customers, the product’s features are enhanced or changed according to their liking and preferences. These qualities have brought down the risks seen when setting up and running a new venture and has removed the need for large amounts of funding for product development.
Myths and Truths
This methodology is fast catching up, but there are many myths surrounding it which do not bring it out in the right perspective. Here is a look at the top five myths and truths about lean startups:
Myth 1 – The Main Concern For Lean Startups Is Spending As Little Money As Possible
Truth – Lean startups do not spend money unnecessarily. This happens naturally because of their disciplined approach to product development. They rapidly test hypothesis using cost-effective testing processes and speed it up by using latest testing methods. Customer feedback is used to improve on product design and features, thus coming up with an optimal product that is well liked by customers.
Myth 2 – Lean Startup Methodology Can Be Followed Only By Online Businesses And Software Companies
Truth – The lean startup methodology is versatile and it can be used by companies from various industries, running various scales of operations. The concept of bringing out a minimum viable product is beneficial for small companies, medium scale enterprises, and also large scale establishments because they will learn from continuous iteration of a product design and bring out an attractive product that caters to consumer’s needs in every way.
Myth 3 – So Much Testing Burns Out Your Team And Resources Are Wasted In Testing
Truth – Lean startups make use of automated testing that actually makes it easier for the staff to do constant iterations. Furthermore, testing is done according to team size and the need of the business which does not put a strain on testers thus making use of them optimally. With every test you know what does not work, which is valuable information that helps to avoid big mistakes that can be expensive. Hence, there is no wastage of resources in testing.
Myth 4 – Lean Startups Place Low Importance On Business Plan
Truth – They do make use of a sound business plan with the only difference being that they do not start out with a plan but develop it only when they have found the best product-market fit. Through the validated learning process, they come with a product that is best liked by consumers based on which they can develop a profitable and scalable business model. It is after this that they come up with a business. In the lean startup methodology, the emphasis is on diligence prior to writing a business plan and not afterwards.
Myth 5 – Lean Startups Do Not Have Perseverance
Truth – Lean startups are all about perseverance in the right direction. If a company develops a product design that is liked by consumers, they can experiment with it and develop it further. They can test it continuously and make improvements until they come up with an optimal product. On the other hand, if the product is not liked by consumers they move on to another product development plan.
Knowing the truths behind these myths is indeed an eye opener because it brings out the effectiveness of lean startups and why it is better to follow this methodology when you want to initiate a new company or start a new venture inside your establishment, etc. After all “lean is in”.
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