Launching a lean startup begins with finding the most efficient, cost-effective way to fill a gap in the market. Saving time, money, and materials is only possible when you focus on developing a product that people truly want. Creating a product or service that no one needs is the ultimate waste—and completely contrary to the lean startup approach. Lean thinking, as outlined in the lean startup book by Eric Ries, minimises guesswork and reduces the need for rework. Instead of relying on luck, it offers a refined methodology to mitigate risks and maximise outcomes.
Eric Ries believes every new startup can succeed by adopting lean processes. He states:
“Startup success can be engineered by following the process; which means it can be learned; which means it can be taught.”
So, what are the key principles of the lean startup model? How can we apply Lean Six Sigma thinking to achieve success? Let’s explore how startups can increase their chances of thriving, even with limited time and resources.
The Main Principles Based on Lean Startup Book By Eric Ries
Below are some of the main principles of lean startup, based on the lean startup book by Eric Ries. These principles have been comlied after a very thorough analysis of the book.
Utilise Resources Efficiently
This is arguably the most organic, front-and-centre principle for any lean startup. Regularly assess your funds and deploy resources in a controlled way, because you probably don’t have a bursting wallet at your disposal just yet.
Evaluate the best way to use the money you do have in order to test and refine your product, and get it in front of your audience. Without significant capital or a generous investor, startups rely on organic growth. Innovation accounting is the term used for the controlled reinvestment of profits to scale-up for the next growth stage.
Employ Validated Learning
Lean Startup book by Eric Ries shows that validated learning is the testing involved in every stage of an idea development, and includes the measurement of its success for future planning. Taking its influence from the Minimum Viable Product, the technique is aimed at risk reduction. It allows you to get a clearer vision of the potential of an idea, without splurging.
This process is part of the ‘build-measure-learn’ approach you should be taking to everything in your startup. Get a prototype out into the world and measure its success before scaling up.
Work Smarter, Not Harder
You’ve undoubtedly heard this before, but it’s never truer than for startups that want to operate using lean processes. A lean startup works by asking the right questions and attempting to answer them in the most efficient way. Instead of asking, “can I build this?” you should be asking “should I build this?” and “can this become a sustainable business?”
You should never attempt to answer this question with guesswork. Find early adopters and develop a Minimum Viable Product. If you find that it works, you’ll already have some customers for the development of your products, and you’ll know which problems it solves.
Unlock Success with Insights from the Lean Startup Book by Eric Ries
The Lean Startup Book by Eric Ries offers actionable strategies to transform your startup into a sustainable business. By applying validated learning, leveraging resources efficiently, and focusing on smart decision-making, you can minimise risks and set your business on the path to success.
Don’t be afraid to fail, as long as you’re failing cheaply and quickly! Lean startups with Lean Six Sigma training have a better chance of refining and developing a product that has the potential to lead to a long-term, sustainable business.
