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Text comes from the book: “Lean Startup: Founding a company quickly, without risk and successfully” (2014), published by Münchener Verlagsgruppe (MVG), reprinted with the kind permission of the publisher.

Here writes for you:

80Eric Ries founded the lean start-up method and made it popular. He is the author of the startup blog StartupLessonLearned.com and co-founded IMVU, a gaming and entertainment network. In 2007 Business Week named him one of the best young entrepreneurs in the technology sector. In 2010 he became entrepreneur-in-residence at Harvard Business School. He has also co-written many books and continues to be a founder, for example as a senior software engineer at There.com. More information at theleanstartup.com All texts by Eric Ries.

Growth Mindset in LeanStartup: Start the growth engine

Most of the decisions startups face are anything but clear. One of them concerns product release. Another is the work organization of the employees.

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The dilemma with product publication

A fundamental problem for Company is the product release or the right time frame for it: How often should a release occur? Once a week, daily, quarterly or once a year?

Product publications cause additional work, so that, from the point of view of effectiveness, often less time is spent on continuous development of the product remains. Waiting too long to do this can lead to ultimate waste in creating a product that nobody wants.

How long to plan for product development?

How much time and energy should companies invest in infrastructure and planning right from the start, in anticipation of success? Too much means under
Circumstances of wasting valuable time that would have been better used for learning processes.

Too little could be disastrous because you might miss the opportunities for success that exist in the start-up phase of a technology and market leadership
left to a competitor who is fast on the move.

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What does the work organization look like?

Another decision concerns work organization in companies: what tasks should employees perform during their working hours? How do we transfer responsibility for learning processes at the organizational level?

Classical departments create incentive mechanisms that support top performance in their respective specialist area: marketing, sales,
Product development.

The start-up's biggest enemy: uncertainty

But what if the interests of the company are best served by cross-cutting cooperation? Startups need organizational structures that fight their biggest enemy: the extreme uncertainty with which they must live.

The lean manufacturing movement faced similar issues in the factory buildings. The answers also apply to startups, albeit with some modifications.

The first important question before converting to a lean company is: which activities are value-creating and which are a form of waste?

The technique of the Lean method

Once you have clarified that, you can start using Lean methods to eliminate the redundant ones and increase the efficiency of the value-creating ones.

In order for these techniques to be used in a start-up, they have to be adapted to the entrepreneurship environment. The value of a startup is not in developing products or services, but in learning how to be a viable one Business Model builds up.

Therefore the question arises:

  • What products do customers really want?
  • How can our business segment grow?
  • Who is our customer?
  • What recommendations from customers should we take into consideration and which ones can we ignore?

Decisions, maximizing success opportunities

These questions must be answered as soon as possible in order to maximize the success of a start-up. They are a valuable element. Lean startups are important in this process, without the need to sacrifice their cardiac blood - their speed and maneuverability.

Contrary to popular belief, lethargy and bureaucracy are not an inevitable fate as companies reach maturity. With the right foundation, a lean startup can become a lean established business if it maintains its maneuverability, learning orientation, and culture of innovation even in the scaling phase.

Just-in-time solutions

In the ninth chapter we will see how Lean startups can take advantage of the counterintuitive power of small lot or batch sizes. Lean Manufacturing uses just-in-time production to manufacture the products, reducing stock flow and return.

Lean start-ups use just-in-time scalability (the adaptability of a product, for example software, when the requirements change) and carry out product experiments without massive planning and in advance Design to invest.

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One answer to "Growth Mindset in LeanStartup: Start the growth engine"

  1. Matthew Turner says:

    Thanks for your great article. This is a really important topic and it is good to see that it gets attention here. Keep it up!

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