California Investment Network


Recent Blog


Pitching Help Desk


Testimonials

"I made several great connections through your network. In fact, I was able to over fund my project. I also listed with another network that cost 3X as much and the leads were nowhere near as solid as the investors I met through this network. I will definitely only be using this network in the future. "
Jason A.

 BLOG >> Recent

The Lean Startup [Entrepreneurship
Posted on April 21, 2015 @ 08:00:00 PM by Paul Meagher

I'm about halfway through Eric Reis book The Lean Startup (2011). This book helped kick off the Learn Startup movement. It is definitely a book worth reading. Well written and well organized with lots of useful case studies to explain and justify the lean startup ideas he advocates.

I was a bit surprised that the book appears to be primarily about how scientific methods can be used to create successful startups. For example, he advocates formulating hypothesis on an ongoing basis about which product features appeal to users and how growth will occur and testing these hypothesis using minimum viable products, split testing, cohort analysis, core metrics and other techniques. Eric encourages us to formalize our "big idea" in more detail so that we can test and measure the validity of our underlying product and growth assumptions. It is hard to argue against using scientific methods which makes it hard to argue against many of the techniques he advocates because they arguably lead to "validated learning" better than most other approaches we might use. According to Eric, "validated learning" is the main objective that startups should be seeking. The more validated learning you can do in a short amount of time the greater your chances of success. Adopting his suggestions will not guarantee startup success but it certainly can't hurt to be aware of scientific techniques you might apply to starting and growing a business.

Many of the techniques he proposes are not easily transportable to all industries. Startups in the IT industry are the best fit because it is relatively easy to run numerous online experiments to test ideas and analyze results with a large enough sample size to be statistically meaningful. Eric does not get into the nitty-gritty details of things like qualitative methods, power analysis, effect sizes, significance testing, or Bayesian analysis but issues like this potentially lurk in the background if you decide to run lots of experiments to figure out what works and what doesn't work for your startup. There are lots of books out there that discuss these technical details.

If the book is primarily about applying scientific methods to creating successful startups why did Eric call it the "lean" startup. This is partly historical because the inspiration comes from techniques used in lean manufacturing that Eric is, in part, adapting to managing startups. "Lean" also refers to the objective of making fewer and better mistakes on route to creating a successful startup. If you make fewer mistakes, and mistakes that are revealing about whether you should persevere or pivot, then presumably you don't need as much capital to become successful. Eric also offers up many ideas for how startups can test product/service ideas cheaply without investing alot of money into development which is another way startups can be lean. I was hoping to discuss some of these cheap ways to test startup ideas but that will have to wait until my next blog.

Permalink 

 Archive 
 

Archive


 December 2019 [1]
 November 2019 [2]
 October 2019 [2]
 September 2019 [1]
 July 2019 [1]
 June 2019 [2]
 May 2019 [2]
 April 2019 [5]
 March 2019 [4]
 February 2019 [3]
 January 2019 [3]
 December 2018 [4]
 November 2018 [2]
 September 2018 [2]
 August 2018 [1]
 July 2018 [1]
 June 2018 [1]
 May 2018 [5]
 April 2018 [4]
 March 2018 [2]
 February 2018 [4]
 January 2018 [4]
 December 2017 [2]
 November 2017 [6]
 October 2017 [6]
 September 2017 [6]
 August 2017 [2]
 July 2017 [2]
 June 2017 [5]
 May 2017 [7]
 April 2017 [6]
 March 2017 [8]
 February 2017 [7]
 January 2017 [9]
 December 2016 [7]
 November 2016 [7]
 October 2016 [5]
 September 2016 [5]
 August 2016 [4]
 July 2016 [6]
 June 2016 [5]
 May 2016 [10]
 April 2016 [12]
 March 2016 [10]
 February 2016 [11]
 January 2016 [12]
 December 2015 [6]
 November 2015 [8]
 October 2015 [12]
 September 2015 [10]
 August 2015 [14]
 July 2015 [9]
 June 2015 [9]
 May 2015 [10]
 April 2015 [10]
 March 2015 [9]
 February 2015 [8]
 January 2015 [5]
 December 2014 [11]
 November 2014 [10]
 October 2014 [10]
 September 2014 [8]
 August 2014 [7]
 July 2014 [6]
 June 2014 [7]
 May 2014 [6]
 April 2014 [3]
 March 2014 [8]
 February 2014 [6]
 January 2014 [5]
 December 2013 [5]
 November 2013 [3]
 October 2013 [4]
 September 2013 [11]
 August 2013 [4]
 July 2013 [8]
 June 2013 [10]
 May 2013 [14]
 April 2013 [12]
 March 2013 [11]
 February 2013 [19]
 January 2013 [20]
 December 2012 [5]
 November 2012 [1]
 October 2012 [3]
 September 2012 [1]
 August 2012 [1]
 July 2012 [1]
 June 2012 [2]


Categories


 Agriculture [71]
 Bayesian Inference [14]
 Books [15]
 Business Models [24]
 Causal Inference [2]
 Creativity [7]
 Decision Making [15]
 Decision Trees [8]
 Design [37]
 Eco-Green [4]
 Economics [12]
 Education [11]
 Energy [0]
 Entrepreneurship [61]
 Events [2]
 Farming [20]
 Finance [25]
 Future [15]
 Growth [18]
 Investing [24]
 Lean Startup [10]
 Leisure [5]
 Lens Model [9]
 Making [1]
 Management [9]
 Motivation [3]
 Nature [22]
 Patents & Trademarks [1]
 Permaculture [34]
 Psychology [1]
 Real Estate [2]
 Robots [1]
 Selling [11]
 Site News [15]
 Startups [12]
 Statistics [3]
 Systems Thinking [3]
 Trends [7]
 Useful Links [3]
 Valuation [1]
 Venture Capital [5]
 Video [2]
 Writing [2]