Full Definition
The Lean Startup is a methodology developed by Eric Ries for building businesses through a cycle of building, measuring, and learning. It emphasizes rapid experimentation, validated learning, and iterative product development over extensive upfront planning.
Core Principles
- Build-Measure-Learn: Rapid iteration cycles to test hypotheses
- Minimum Viable Product (MVP): Launch the simplest version to gather real data
- Validated Learning: Making decisions based on empirical evidence, not assumptions
- Pivot or Persevere: Use data to decide whether to change direction or stay the course
- Innovation Accounting: Measuring progress with actionable metrics, not vanity metrics
Real-World Example
Using lean startup methodology, a food delivery app tests demand by manually delivering meals before building any technology, validating customer willingness to pay.
Related Terms
The simplest version of a product with enough features to attract early users and validate assumptions.
A fundamental shift in a startup's business model, product, or target market based on market feedback.
The stage where a product satisfies strong market demand, indicated by rapid organic growth.
Evidence of market demand and business momentum, demonstrated through metrics like users, revenue, or engagement.
Building and growing a company without external funding, using only personal savings and revenue.
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