As I was thinking of what to write for this blog, I checked the Harvard Business Review and it turns out the methodology I started my company with is being praised. The Lean Startup process of starting any type of company requires the curator to validate what one thinks is correct by actually taking your idea or product to market at its inception. The skeletal theory that one has to create an in depth business plan is no longer what needs to happen in order for a business to come to fruition. In fact, innovative entrepreneurial leaders, teachers, and mentors advise using the the Lean Startup Methodology in order validate your business rather than base it off of assumptions. The Lean Startup is an approach for launching businesses and products, that relies on validated learning, scientific experimentation, and iterative product releases to shorten product development cycles, measure progress, and gain valuable customer feedback. The approach works for both existing and new business ventures. The whole concept revolves around science and testing business ideas before just launching them without consumer feedback. I chose this specific article because it is how I validated a business model based on actual consumer acceptance. My company ThreadMeUp.com went through an intense 20 week incubation with the Lean Startup Methodology and it really provides you with an infrastructure to building and carving out your business model. This type of process allows the entrepreneur an opportunity to pivot or iterate their model based on consumer feedback as opposed to a business plan which is not as adaptable. The framework for what I used in Lean Startup was called a “Lean Canvas” (Attached). My whole company and executive team is sold on Lean Startup and operating lean. We only do what we need and spend when we need it. I cannot praise this model enough because in a little under two months of business my company has reached $40,0000 in sales and rapidly growing. Much of this due to the methodology and train of thought learned in the Lean Startup.
12 thoughts on “Lean StartUp – The Harvard Business Review”
Wow $400,000 worth of sales is very impressive in two months. Obviously, the Lean Startup is a truly wonderful process. I think George Foreman would agree as well in that there is nothing better than a “lean mean…machine.” Furthermore, I would agree that keeping operations lean is important as there are a lot of costs associated with being an online Startup. For example, customer acquisition costs can be very expensive and dig into the margins. However, lean operations help to balance startup expenses like customer acquisition costs.
This is an interesting idea which I never have heard of before. Upon my research on this idea, it seems that this whole idea is just taking regular business practices and removing the fluff. I mean shouldn’t you research your customer base anyway before launching something? I think this whole idea came from a book anyway. While I think this process is a good one, I fail to see what “new ideas” it brings to the table.
I am taking ICS 394 entrepreneurship strategy with Raman Chadha. He goes over this concept briefly, but lean startup method is a great method. If anybody plans to do something entrepreneurial in their life, this method is full proof and a great concept that makes sure that you do not put all your money when developing something new. And if anyone wants to learn how learn startup works, their is a Special Topics class MGT 398-Business Development Plan that mainly focuses on this idea. If you have a idea, but do not know how to implement it, this class is the one for you. GO check it out!!!!
I’m thrilled you posted about the lean startup model. When I initially started building my business plan, I was completely caught up in the “olden days” version of business model. After meeting with a wonderful professor here at DePaul, April Lane, I was informed of the lean startup model and how it had transitioned the idea of business creation to the more virtual era. What may be interesting to consider is how this model will transcend web business development, and begin to enter the realm of overall businesses. Also, checked out your site threadmeup.com and it is a great concept, wish you the best of luck moving forward!
Also learning for Raman the ICS 394 Professor emphasize the need to go through the lean process instead of a Business model, which was the old tradition. This process went from just learning from experience, which majority of the entrepreneurship is. It is now turning into a concept that everyone can follow to decrease the amount of spending as well as the time input that went into building a business model. The lean start up allows changes with feedback and a good way of moving forward.
This post caught my attention, because I have never heard of Lean StartUp before. From what I have read online, and from the previous comments, it appears to be a good idea. As I do believe actually going out and experimenting with a company is a great idea, I do not believe that the old school ways of a business planning should be totally forgone. The reason I say this is due to the fact that new business proposals should take into consideration a lot of research and some of the tedious work that the “old school” business plans focus on. I think this is beneficial so money is not wasted on experimentation that will be ineffective. Especially for a startup company, money is a valuable resource and management/forecasting of that money is very important. On the flip side of that note, I think the idea behind Lean StartUp is great because it is not solely based upon elaborate planning, intuition, and over the top design. The ability to go beyond the classroom/textbook examples and put an idea to market is very valuable and offers great insight to those entrepreneurs.
Personally, I think a hybrid of the two methods would be best. With what I have heard about Lean StartUp and how through the experimentation ability, an individual can interact with the market more- I think that is a great idea to have entrepreneurs further develop their product and company. My question to you is, to what extent does the Lean StartUp fall short? With the traditional business plans, forecasting and thorough research of the business environment is completed in order to develop a plan of execution. Are there areas that you would think relying on the traditional business plan would be more beneficial than the Lean StartUp methodology?
Wow congratulations on the $40,000 in sales in just two months! This is definitely a cool idea and it was interesting to read about it a little bit and learn about it. I have never heard of this before, and when reading about it it almost seems too simple, but hey, you’ve clearly proven that wrong! If I ever start a business I will definitely keep this in mind.
I agree with the previous post. No system is foolproof but I am happy that is has been successful for you and your company. I am a fan of the lean startup method because it allows for entrepreneurs to have an opportunity to start their business without having to go through the traditional method. One of the main advantages I like of this method is how the amount of money needed to start is significantly lower than a traditional business model. I also love how it allows for modifications to the product or service because that allows for adaptability without having to worry about wasted research or efforts.
This was a very useful and interesting post to me because I seek to start my own business as well. I have never heard of this method and was glad to see it as a post. The Lean Start Up Method seems to have many great advantages as a method to start a business and I will look further into it. Also, congrats on $40,000 in sales!
Making 400,000 in just two months is such a great accomplish! I’ve never really heard much about The Lean Startup, but this approach seems very clever. It sounds like this method takes away all the unnecessary work that must be done in business practices. However, I do believe that old practices should not be forgotten but rather be incorporated so that businesses can ease into this new type of practice.
The Lean Startup sounds like a really good and interesting idea. Most people come up with start up with ideas that they think people may like. People spend years in creating an ideal product for potential customers. They may fail and do not reach a wide spectrum of customers because they do not speak to their potential customers nor do they get feedback. Lean Startup establishes a structure for the company to develop the product. Before distribution of the product, the company will already have a customer base along with specific guidelines to improve or modify the product.
This is an interesting topic. I love when new ideas, strategies, and views about something are put into use. This strategy of going against what has always been done is a new innovative way to do business. Innovation is at the heart of what makes individuals successful. Whether it’s a new product, company, or business strategy. I have noticed that as time goes on, more and more people are beginning to go against the grain and do things the way they want to do. And the end result has been success.