What is lean startup methodology?

Lean startup methodology primarily enables you to lead and promote your own business project in the best possible way. Lean startup assumes that a detailed action plan is created only for the immediate future, and in subsequent phases, it is adjusted to the current economic and market situation. This means that by applying this principle, we can always be up to date and respond to customer expectations immediately.

Assumptions and main objectives of lean

It is said that the main objective of lean is to gain knowledge about the market, customer needs and the best way to commercialise an idea under conditions of extreme uncertainty. By having such knowledge, we can be confident of launching a digital product that will be in demand. Lean startup envisages team structures instead of functional departments. Customer development tools are used instead of product management, and agile methodologies dominate projects. Additionally, the methodology says that the focus should be on minimising waste and improving internal processes and the supply chain. The whole lean startup perspective represents an innovative way of setting the direction of activity and organising activities for organisations in their early stages.

Differences between lean and traditional business development

First and foremost, lean involves the verification of hypotheses, while traditional thinking tends to implement assumptions. The design process in both cases is also different. Lean uses agile techniques: it considers building the product in iterations, incremental changes, while traditional layout chooses a safe design path and prepares a full product definition before construction.The COO applying Lean thinks first and foremost about covering fixed costs. In his experience, decisions taken to improve fixed cost management automatically translate into lower total costs, but require greater flexibility in the approach to running expenses.

Benefits of lean startup methodology

With lean, you don’t have to engage in months of planning and research because entrepreneurs accept that all they have on day one is a series of untested hypotheses or good guesses. So instead of writing a business plan, founders summarise their right guesses in a framework called a business canvas. Then they enter the testing phase, where user reactions can be verified. They take out all the good guesses in the world and ask potential users for feedback on all elements of their product.You can save a lot of time by following this principle. Agile development works in tandem with customer development, eliminating wasted time and resources by developing the product in an iterative and incremental manner. In simple terms, the lean startup approach helps new businesses introduce products that customers actually want, much faster and cheaper than traditional methods. Importantly, lean startup methodology makes digital product development less risky. Remember that you are developing a new product and while you may think you have a pretty good idea, you can’t really know what the final version will look like until you start working. The lean startup methodology enables you to achieve the final version as efficiently as possible.