Growing the lean way

For those who have been in the business space for a while the term “Lean Startup” may not particularly be new as coined by Eric Ries in 2011.

What is this Lean Start up anyways…

Lean startup is a methodology for developing businesses and products, which aims to shorten product development cycles by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and validated learning. The central hypothesis of the lean startup methodology is that if startup companies invest their time into iteratively building products or services to meet the needs of early customers, they can reduce the market risks and sidestep the need for large amounts of initial project funding and expensive product launches and failures.

It is a very profound approach to building a business by focusing on the MOST IMPORTANT things necessary to taking a business to the next level.

Many at times it makes sense to start out by putting all the necessary things in place when setting up a new business, from the office space, to furniture, to recruiting all ideal and expected staff to getting registered, branded etc.

Reality sets in and the cost of doing all of these, time and resources invested altogether takes the company away from what really matters which is understanding your market, your product, the opportunities available and how exactly the business plans on making money. At this point the company is irredeemable and back in the open looking out for the next ‘funds’ instead of the next income.

Do things that DO NOT scale

A common ideology to newbies in business is gotten from observing functional organizations.

They witness the way ‘structure’ is the order of the day. Accounts department to Business development, Hr etc all working together as a wholesome organism. This is the dream of any startup founder, where his simple idea grows to becoming a structured organization like the one he has witnessed.

But then while it is not entirely right to maintain a business in the crude mom and pop manner, that is usually the way to starting out, then the grey areas will gradually transcend the business into that dream structured organization.

In Summary

95% of Businesses fail in their first year and to be among the successful 5% it is essential to incorporate a lean growth into your business plan.

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