Lean Start-Up Changes Everything

Lean Start-Up

Methodology favoring experimentation over planning, customer feedback over intuition, and iterative design over traditional development.

Minimum Viable Product

Initial version of a product with enough features to satisfy early customers and provide feedback for future development.

Pivoting

Making a fundamental change in a business strategy based on feedback to improve chances of success.

Entrepreneurship

Process of starting a new venture, embracing risk and innovation.

Business Model Canvas

Diagram summarizing how a company creates value for itself and its customers.

Customer Development

Approach involving gathering feedback from potential users, purchasers, and partners to test business hypotheses.

Agile Development

Methodology working with customer development, emphasizing flexibility and quick adjustments.

Hypotheses Testing

Process of validating untested assumptions through experimentation and feedback.

Failure Rate

Percentage of start-ups that do not succeed in establishing a sustainable business.

Iterative Design

Approach of making small adjustments or pivots based on customer feedback to improve a product.

Big Data Movement

Trend involving the use of large data sets to analyze and extract insights for business decisions.

Fatal Setback

Significant failure or obstacle that hinders the progress or success of a venture.

Business Plan

Document outlining the opportunity, problem, solution, and financial forecasts of a new venture.

Customer Feedback

Opinions and insights provided by customers on a product or service.

Start-Up

Temporary organization seeking a repeatable and scalable business model.

Lean Method Principles

Key concepts of lean start-up: hypothesis testing, customer feedback, and agile development.

Nimbleness

Ability to move quickly and make changes efficiently in response to feedback or challenges.

Pricing Tactics

Strategies used to determine the pricing structure of products or services.

Revenue Model

Strategy outlining how a company generates revenue from its products or services.

Lean Definition of Start-Up

Temporary organization designed to search for a repeatable and scalable business model.

Customer Acquisition Strategies

Methods used to attract and retain customers for a business.

Business Model

Framework describing how a company creates, delivers, and captures value.

Lean Start-Up Techniques

Practices aimed at reducing the failure rate of new ventures through experimentation and customer feedback.

Pricing Strategies

Approaches used to set the prices of products or services to maximize revenue and profit.

Customer Archetypes

Representative models of different customer segments based on behavior, preferences, and demographics.

Distribution Channels

Routes through which products or services reach customers, including online platforms, stores, and direct sales.

Revenue Streams

Sources of income generated by a business through the sale of products or services.

Cost Structure

Breakdown of all costs incurred by a business in its operations, including fixed and variable expenses.

Pivot

Changing business hypotheses or direction based on customer feedback or validation

Stealth Mode

Operating in secrecy to avoid competition, a concept challenged by lean start-up methodology

Lean Manufacturing

Efficient production system emphasizing minimizing waste, influencing lean start-up practices

Customer Acquisition Cost

Expense to acquire a new customer, a crucial metric for start-ups

Lifetime Customer Value

Total revenue expected from a customer over their entire relationship with a company

Churn

Rate at which customers stop using a product or service

Viralness

Measure of how quickly and widely a product or service spreads among users

Geographic Entrepreneurial Hot Spots

Areas with high concentrations of expertise in start-up creation, like the East and West coasts

Portfolio of Start-Ups

Multiple start-ups managed collectively, where using lean methods reduces failure rates

Success Factors

Various elements influencing the success of a start-up beyond a single methodology

Lean methods

Techniques emphasizing efficiency and rapid iteration

Start-up failure rate

Percentage of start-ups that do not succeed

Innovation economy

Economic system driven by start-up expansion

Venture capital industry

Sector funding start-ups for potential returns

Decentralization of financing

Shift from traditional venture capital to diverse funding sources

Minimum viable product

Product with essential features for initial customer feedback

Business model competitions

Competitions focusing on innovative business models

Lean LaunchPad course

Educational program training instructors on lean principles

Agile development

Product creation in short, iterative cycles

Super angel funds

Smaller funds making early-stage investments

Customer discovery

Process of understanding customer needs and preferences

Business model innovation

Creating new ways of generating revenue and value

Lean start-up methodology

Approach emphasizing rapid innovation and customer feedback

Lean principles in corporations

Application of lean start-up practices in large companies

External threats

Challenges from outside factors affecting business