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Startup Ordbog

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Lean Start-up

A lean startup is a strategy that focuses on efficient and step-by-step development of businesses and products. It highlights MVPs and costumer-feedback loop.

A lean startup is a method for building businesses and products that stresses a systematic, cost-effective approach to innovation and product development. This approach aims to create and manage a startups with achieving sustainable growth while minimizing the waste of resources, such as time and capital.

How Does a Lean Startup Work?

The lean startup methodology is guided by several key principles and practices:

  1. Build-Measure-Learn: This iterative cycle is the foundation of lean startup methodology. It begins with building a minimal viable product (MVP) to quickly test a business idea. After launching the MVP, data is collected, and customer feedback is gathered to measure its performance. Based on these insights, the startup learns what works and what doesn’t, leading to adjustments and further iterations.
  2. Validated Learning: Lean startups focus on validated learning, which means gaining real-world evidence through experiments and customer interactions. This learning process informs decision-making and helps startups pivot or persevere with their ideas.
  3. MVP (Minimum Viable Product): The MVP is a simplified version of a product that contains the minimum features required to satisfy early customers and gather feedback. It is developed quickly and at a low cost, allowing startups to test their assumptions without building a full-scale product.
  4. Pivot or Persevere: When faced with data that contradicts initial assumptions or when the product isn’t gaining traction, lean startups are prepared to pivot. A pivot involves making a fundamental change in the product, strategy, or target market based on what has been learned. Conversely, if the startup sees promising results, they persevere and continue refining and expanding the product.
  5. Continuous Deployment: Lean startups emphasize rapid development and deployment. New features or improvements are delivered to users quickly, allowing for faster feedback and iteration.
  6. Build-Measure-Learn Feedback Loop: This loop, as described by Eric Ries, the pioneer of lean startup methodology, is at the core of the approach. It helps startups avoid spending too much time and resources building something that may not have a market fit.

Why is Lean Startup Significant?

Lean startup methodology is significant for several reasons:

  1. Resource Efficiency: By emphasizing the development of MVPs and rapid iteration, lean startups minimize waste and efficiently allocate resources.
  2. Reduced Risk: The iterative nature of lean startup allows for the early detection of problems and the flexibility to adapt, reducing the risk of failure.
  3. Customer-Centric: Lean startups prioritize customer feedback and data, ensuring that the product aligns with market needs and preferences.
  4. Innovation: The approach fosters a culture of innovation, encouraging entrepreneurs to explore new ideas and business models.
  5. Cost-Effective: By avoiding lengthy and expensive development cycles, lean startups can operate on leaner budgets and validate their ideas more quickly.
  6. Scalability: The lessons learned through validated learning and rapid iteration can be applied as startups scale, promoting sustainable growth.