Just like a lean diet, a lean startup strategy is a scientific method to teach company owners the right way to launch a new product. A lean methodology aims to bring the product faster into the hands of the customer and improve the product later. It is a principled approach to launch a new product or improving an existing business. The method focuses on running a business with maximum efficiency and reduce losses to a minimum. Here are the main principles that govern the lean business management process…
Reduce the uncertainty
The lean startup methodology focuses on reducing the uncertain elements in a startup. The process achieves this by continuously testing the business model and that too in a leaner way. That is, through the cheapest and the most efficient way possible. Businesses often fail to understand that the chances they take when introducing a new product or service is far more against them than they could have ever imagined. Thus, to navigate such uncertain territory, they need the help of a disciplined approach to business management. The lean business approach essentially provides that.
Think like a scientist
The lean methodology treats every entrepreneurial idea as a hypothesis rather than a successful business plan. They approach it like a scientist, testing and tweaking it as they go along. Thus, there is no final product. The business model at every stage is ready for scrutiny and is able to adapt quickly to market needs. They try to work smartly and be ready to improve the idea rather than wasting huge sums of money and valuable time on a failed hypothesis.
The MVP
This is the main theme behind the whole idea of a lean startup. The founder first tries to develop a prototype of the product (The Minimum Viable Product) and then launches it to the market just to test the waters. Once the feedback arrives, the founder again iterates the business model. This process is repeated until a product market fit is achieved.
Thus, by the time the owner is ready to manufacture the product at a large-scale, the market is ready to receive it and a lot of customers know about the product beforehand.
Business growth
Understanding your company’s growth indicators is also a key part of running a lean business. It goes without saying that having clear stats of weather we are heading in the right direction or not is incredibly useful to any entrepreneur or manager.
This if why one of PHPReaction’s core benefit has to do with crunching your numbers (sales, time, expenses, inventory and more) in order to help you see clearly how your gears are running and taking the appropriate decisions.
