!URL
http://www.quora.com/Lean-Startups/Does-the-lean-startup-philosophy-lead-to-more-successful-startups/answer/William-Pietri?srid=uKg

!Description
he "lean" in Lean Startups has two meanings. People here have mainly focused on the common meaning, "not fat." I want to focus on the other one: "lean" as Lean Manufacturing.

The short answer is nobody knows for sure yet whether more success will come, but there are theoretical reasons to think so. There are a lot of things that differentiate Lean from typical western business practices, but let me focus on four:

   1. capital efficiency - This is really an outcome of Lean's focus on waste reduction. For example, recall WebVan. Their investors paid something like $1bn to find out that the US wasn't ready for online grocery shopping. Could they have learned that for less money by, say, testing their core hypotheses on a smaller scale? Absolutely, and that's the Lean Startup's goal: testing assumptions as quickly and cheaply as possible.
   2. pull, don't push - Lean Manufacturing aims to start building something only when it is ordered. Similarly, the Lean Startup approach seeks to st
bag
mbi_public
created
Fri, 11 Feb 2011 22:39:12 GMT
creator
dirkjan
modified
Fri, 11 Feb 2011 22:39:12 GMT
modifier
dirkjan
tags
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customer
development
lean
mbi
startup
creator
dirkjan