Lean Startup Concepts and Vocabulary

Lean Startup

A methodology for developing businesses and products that aims to shorten product development cycles by adopting a hypothesis-driven approach.

Build-Measure-Learn

The core feedback loop of Lean Startup that emphasizes building a Minimum Viable Product (MVP), measuring its success, and learning from the results.

MVP (Minimum Viable Product)

The simplest version of a product that can be released to test a business idea and gather user feedback.

Concierge MVP

A manually-driven version of a product that allows businesses to test ideas without full automation or development.

Wizard of Oz MVP

A prototype that appears fully functional to users but is operated manually behind the scenes.

No-code MVP

A product that enables users to take action without the need for traditional coding, often constructed using visual development platforms.

Landing Page MVP

A simple website that outlines a product idea and tests market interest before full development.

Customer Development

The process of understanding customers' needs and validating business hypotheses through direct interaction with potential users.

Customer Discovery

The first phase of Customer Development where assumptions about customer needs are verified.

Customer Validation

The process of validating the product's market fit and the sales model to ensure it can scale.

TAM (Total Addressable Market)

The total revenue opportunity available for a product or service.

SAM (Serviceable Available Market)

The segment of the TAM targeted by your products and services which is within your reach.

SOM (Serviceable Obtainable Market)

The portion of the SAM that you can realistically capture.

ARU (Assist, Replace, Unthinkable)

A framework to understand how AI can assist users.

GTM (Go-to-Market)

The strategy for delivering a product to customers and ensuring its success in the market.

PLG (Product-Led Growth)

A business methodology where the product is the primary driver of customer acquisition, retention, and expansion.

CVP (Customer Value Proposition)

The promise of value to be delivered to customers, articulating why a customer should buy a product.

Eisenmann's Value Creation Framework

A four-component framework that includes Create, Deliver, Make