Starting a new business is never a risk free endeavor. In fact, as the research of Shikhar Ghosh published by Harvard Business School shows, 75% of start-ups fail. That means 3 out of 4 start-ups are likely to fail. Of course, there’s not much you can do about it. Your only solution is keep with the standard steps everyone knows you need to follow to get your enterprise going. So you come up with a solid business plan, recruit a team, develop, market, and sell your products, hoping nothing will go wrong.
If you’re thinking about starting a business, the lean startup method might prove to be a better solution however. What is its main advantage? It’s based on facts and numbers, and not intuition. You see, many entrepreneurs develop a business or a product based on what they think the consumers want. The result may not have the success the entrepreneur hoped it would. The lean startup is a scientific approach to business. Instead of relying on your intuition, the lean startup teaches you to talk to your prospective customers and see what they are interested in, and if they would buy the product you want to sell – before spending time and money developing and marketing it.
Feedback from prospective customers is vital according to the lean startup. It’s what makes the difference between success and failure, and numbers support this theory. In fact, the lean startup method is so effective that business schools all over the world have included it into their curriculum.
If you’re thinking about starting a small business, then applying the lean startup method ideas may just help you succeed. This method teaches that you need to learn from both your failures and your successes. It teaches you how to manage a startup, when to change goals, and how to expand your business quickly. And, although it’s only a few years old, more and more companies and entrepreneurs are adapting and using this method to maximize their chance of success, a clear indicator of its effectiveness.