In 2008, Eric Reis published a book in which he formulated the concept of lean startups. It worked on the strategy of harnessing the selling potential of a product that customers have displayed a need for instead of creating a brand new one and waiting for demand to emerge. Since the time his book was published, the market has become increasingly competitive in every aspect. So, how would an entrepreneur looking to succeed establish a lean startup?
Here are the steps to follow to establish a lean startup in 2024.
Over 50% of startups fail in the first five years of operation. The lack of a solid product that failed to meet or capture enough market demand is one of the biggest reasons.
Discover a Consumer Problem and Develop a Blueprint
In order to find an issue that is faced by customers, conduct extensive market research to locate the pain points and inefficient products and processes in the market. Through this, you will understand the major problems in the market and can go on to develop a blueprint for your product.
Remember, while creating this idea, make sure that the problem is significant enough to require a solution. It should also be a minimum viable product (MVP), one that addresses the problem without requiring too much effort or resources.
Create your MVP and Receive First Feedback
While creating your MVP, focus on developing the core features that resolve the issue with proper functionality rather than any other external and unnecessary developments. Use practices of agile development for speed and make sure that the first design can be readily altered based on feedback.
The first step in receiving feedback (to learn its shortcomings) is to release the MVP to a focus group of advanced purchasing buyers. Gather quantitative and qualitative data through the use of interviews, surveys, and other feedback collection mechanisms. The data should cover key metrics that are important for product success on a larger scale.
Iterate and Pivot Based on Feedback
This is the most important step in the process. To establish a lean startup, you must be willing to learn from your mistakes. The data that you have gathered is useless without it being applied to make the necessary changes. Make modifications to the product based on the feedback. This can be either to pivot your business strategy by making a major change or to preserve the existing strategy and refine it accordingly.
Remaining Steps to Establish a Lean Startup
Post-modifications, your product is ready to be tested by consumers again. Follow the same strategy of build, measure, and learn to ensure the product becomes successful. Beyond this, the remaining steps are similar to those of a traditional startup, which focuses on constructing a viable business model and hiring the right team to execute it. The three steps highlighted above are the must-follow steps to establish a lean startup in 2024.
