The Lean Startup is a set of Practices for helping entrepreneurs increase their odds of building a successful startup, To set the record straight, it’s important to define what a startup is.
What Is A startup?
A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.
I’ve come to realize that the most important part of this definition is what is omits, It says nothing about the size of the company, the industry, or the sector of the economy,
Anyone who is creating a new product or business under conditions of extream uncertainty is an entrepreneur whether he or she knows it or not and weather working in a government agency, A venture-backed company, a nonprofit, or a decidedly for-profit company whit financial investors, Let’s take a look at each of the pieces.
The word institution connotes bureaucracy, process, even lethargy, How can that be associated with building an institution: hiring creative employees, coordinating their activities, and creating a company culture that delivers results,
We often lose sight of the fact that a startup is not just about a product, a technological breakthrough, or even a brilliant idea.
A startup is greater than the sum of its parts; It is an acutely human enterprise. The fact that a startup’s product or service is innovation is also an essential part of the defination of a product; One that encompasses any source of value for the people who become customers.
Anything those customers experience from their interaction product. This is true of a grocery store, an e-commerce website, A consulting Service, And a nonprofit social service agency,
In every case, The organization is dedicated to uncovering a new source of value for customers and cares about the impact of its product on those customers.
It’s is also important that the word Innovation be understood broadly: Startups use many kinds of innovation: Novel scientific discoveries, repurposing an existing technology for a new use, devising business model that unlocks value that was hidden, or simply bringing a product or service to a new location or a previously underserved set of customers.
In all these cases, innovation is at the heart of the company’s success, there is one more important part of this defination: the context in which the innovation happens.
Most businesses large and small alike are excluded from this context, Startups are designed to confront situations of extream uncertainty, To open up a new business that is an exact clone of an existing business to the business model, pricing, target customer, and product may be an attractive economic investment.
But it is not a startup because its success depends only on execution so much so this success can be modeled with high accuracy, This is why so many businesses can be financed with simple bank loans;
The level of risk and uncertainty is understood well enough that a Leon officer can assess its prospects, Most tools from general Management are not designed to flourish in the harsh soil of extream uncertanity in which startups thrive.
The Future is unpredictable, customers face a growing array of alternatives and the pace of the change is ever-increasing Yet most startup’s in garages and enterprises alike- still are managed by using standard forecasts, product milestones, and detailed business Plans.