Lean Start-Up methodology
No matter how brilliant your product idea is, if it does not correspond to what customers want, it will fail. The Lean Start-Up methodology provides a structured approach to help start-ups develop products and services faster and ensure, through a process of "validated learning", that they meet clients’ needs and expectations.
Start-ups operate in an environment of high uncertainty: they do not know whether their product will work, whether their financial and human resources will be sufficient for the development and how it will be received by clients. The Lean Start-Up methodology has been designed to help start-ups, in particular in the ICT field, develop products based on immediate feedback from their first clients, thereby decreasing the risk for failure.
"Using the Lean Start-Up approach, companies can create order not chaos by providing tools to test a vision continuously."
Eric Ries, inventor of the Lean Start-Up methodology
The methodology is based on a feedback loop including three core components:
- building a “minimum viable product”;
- measuring the reactions of the first clients;
- learning whether a change of direction is needed or whether to persevere.
This approach allows start-ups to test each element of their vision with real clients and see whether their ideas have the potential to be transformed into sustainable business models. This also reduces the needs for large amounts of initial project funding and expensive product launches that risk to result in failures.