Do you know that out of 586 unicorns globally, India has a share of 21, with an average age of only seven years? The lean startup has turned into a unicorn company, a private company valued at over $ 1 billion.
The recent report published by CB insight shows that India’s highest-valued startups are e-commerce. 33% of the total value is from seven E-commerce companies. The startup second and third on the list is from online education and accommodation, while ride-sharing and food delivery also make appearances.
If you observe them closely, you will find that most of them are consumer-facing and have one typical pattern, where they started with Design Thinking and Lean startup principles.
What Is The Lean Startup?
The concept of lean has derived from Toyota Production System, Farther of lean management, Taiichi Ohno. The fundamental principle of lean is to reduce waste and to add value to customer’s products and services. Toyota Production System is also referred to as Just In Time production.
An American entrepreneur and author Eric Ries have introduced this concept and written a book called “The Lean Startup.” He says, “Startup success can be engineered by following the process, which means it can be learned, which means it can be taught.
The lean startup is the scientific approach to build and manage startup, create the products to the customer’s hand faster than ever.
It teaches how to build the growth engine, fuel the machine, and fire it to maneuver the vehicle with maximum acceleration.
Today’s entrepreneurs’ more significant challenges are either procrastinating to deliver to firsthand product to their potential customer or are highly perfectionist to have it on time. Both are the sign of Intertia. They get trapped in the vicious cycle of delivering it to their right customer at the right time.
Budding entrepreneurs either don’t know who is their audience or customer doesn’t know who can provide the solutions which can reduce their pain. Customer taste always keeps changing, and their requirement is very dynamic. You need to know the changing need of your customer periodically.
And the most critical challenge is the absence of a system or dashboard to monitor its overall performance. If you are putting too much effort and getting a low result, check your dashboard to tweak and take action. Your dashboard will help you to navigate the right route even if you landed on unknown terrain.
In all the above scenarios, take one step back, understand your customer’s immediate need, re-build a higher value product because it’s time to pivot.
Lean does not mean building a minimum viable product or proof of concept in cheap. Instead, it provides you direction to create processes and product development methods easier and better than you think. It reduces the uncertainty as you glide towards your goal just by following the lean startup methodology.
To Read More, Get the Book, “The Igniter’s Journey: How Design Thinking Helps You To Build Your Entrepreneurship” from Amazon