Lean Startup

What is Lean Startup?

It is a movement that emerged in Silicon Valley in the early 21st century. Lean Startup tried to reduce the high failure rate of technology startups. Eric Ries coined the term that went viral. Since then, this methodology has been growing in adherents, practices, and techniques until it eventually crossed the border to big companies.

Steve Blank defines a startup as an organization formed to look for a repeatable and scalable business model.

This definition of startup best captures the essence of the Lean Startup methodology. Although, as you will see in this guide, the principles and practices of Lean Startup do not only apply to new companies but new products or innovations.

Analyze Steve Blank’s definition in detail:

• An organization can be a group of geeks in a garage, an innovation team, or a product team within a corporation.

• It is a repeatable business model because you want to sell to many people and not just the initial group of early adopters.

• It is a scalable business model because you want to create a successful business from it. If your operating costs are too high, the technology you require is too expensive, or you use the wrong distribution channel, you will not succeed.