In [[The Lean Startup]] one of the key concepts is that of //build-measure-learn//. 
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# ''//Ideas//''
## All startups start out with an idea and a strategy based on certain assumptions. The most important strategy assumptions are so called //leap-of-fate// assumption because they make or break the value proposition of the venture.
## Sharpen your ideas by working with a [[Customer Archetype]]@design and validate them (see also [[Empathy Map]]@games)
## Beware of analysis paralysis and start validating your ideas quickly!
# ''Build''
## As your first product targets [[Early Adopter]]@marketing, it does not need to be perfect.
## Most people overestimate the # features that need to be present in a product //''when in doubt simplify''//
# ''//Product//''
## Try to //build// a [[Minimal Viable Product]] as soon as possible to test your //leap of fate// hypothesis
# ''Measure''
## The concept of [[Innovation accounting]] enables a startup (or new in company innovation) to validate objectively that they are learning how to grow a sustainable business.
## Each startup has a different hypothesis on their financial operational model. Depending on these assumptions, learning milestones will be different.
## As an example, in a manufacturing company, growth depends on three things:
### The profitability of each customer
### The cost of acquiring new customers
### The repeat purchase rate of existing customers
### These are the basic drivers for this companies growth model
## By contrast, eBay's success depends on:
### Network effects, sellers want the highest number of potential customers, buyers want the marketplace with the biggest competition among sellers.
# ''//Data//''
## A useful concept in measuring your business is [[Cohort Analysis]]
## Be aware of [[Vanity Metrics]]. Using [[Cohort Analysis]] you can measure if customers in new cohorts actually use the product more, are willing to pay more or otherwise are more engaged with the product.
# ''Learn''
## [[Validated Learning]] in a [[Kanban]]@kanban board is a great way to have developers engage in how useful their features and ideas work in a customer environment.
bag
mbi_public
created
Fri, 18 Nov 2011 19:52:03 GMT
creator
dirkjan
modified
Fri, 18 Nov 2011 19:52:03 GMT
modifier
dirkjan
tags
Term
The Lean Startup
creator
dirkjan