Lean Startup Theory

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Eric Ries, a man who has personally experienced innumerous businesses commence and fail. Regardless of how failure brought him to his knees, he has learned from his faux pas start. He now climbs on the success ladder, building a multi dollar enterprise, and guiding others to build their success ladder. ‘Lean Startup’, is the key to unlock a system that’s leads to a successful business. Eric explains five principles that are important for the success of a startup. He elucidates a startup as an organization that is deep-dyed to innovation under conditions of uncertainty.

The first idea is to have a clear vision. Technological advancement and chaos at management has increased the productivity capacity in comparison to the firms’ knowledge of
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Startup strategy plays an adequate role in figuring out the right question to ponder upon. The first challenge an entrepreneur has to face is the building of an organization that is willing to test the assumptions. The second challenge is not to loose sight of the vision in whole. Leap of faith is considered as the most risky element of a startup plan. It is important for a business to be based on firsthand and deep knowledge along with collecting external customer data along with going beyond the customer…show more content…
The quality problem can be spotted much sooner in small batches, which also enables people to discover the truth. Eric explains the advantage of small batches with an example of Toyotas, as the company used machines, which could produce variety of parts in small batches. The company focused on “changeover time”, which enabled them to produce an entire series of automobiles by using small batches as their core agenda.

It is integral to keep in mind that new costumer are attracted to the product or service from the actions of the costumer who has already experienced your product or service. Eric explains four ways by which past costumers drives sustainable growth: First, by the word of mouth. Second, by a side effect after using the product. Third, via funded advertising and fourth because of repeated purchase and use.

The mistake we make is that we don’t think and decide what we need to build a good training program. Rather the training program grew to evolving its own process. The process was subject to continual experiments and revisions and as a result it emerged as more effective over time. One of the most important discoveries of the lean manufacturing movement is that quality cannot be traded for time. Acceleration requires a process, which facilitates a natural feedback
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