Lean Startup is based on the scientific process, albeit more business focused, focused on learning fast when you know little. It’s the fastest known way to validate a product idea. Consider this a Lean Startup 101 introduction to how to use it in your business.
Remember the 80/20 rule?
You get 80% of the results from 20% of the inputs. Well, 80% of the results from using Lean Startup come from running experiments, in my opinion. Meticulously.
- First, focus around the product; prove your value hypotheses.
- Then, focus on growth; prove your growth hypotheses.
If you aren’t running experiments, you’re not learning.
In a previous life, Elon Musk was one of the main creators of PayPal. He’s pretty open about how the initial idea didn’t actually catch on very well. When he was doing customer interviews, he’d get that glazed-over look. Yeah, that one.
At the time, the team was approaching consumers. They were saying they aimed to “replace the US dollar with a new internet currency”. Remember this was 1999, almost a decade before Bitcoin existed.