Lean Startup: what it is and how to use this methodology
Have you ever felt that there are too many obstacles in the operation of your company? Maybe the Lean Startup be the answer you are looking for to optimize your business and achieve growth above average, even with few resources. In this article, we will help you discover how this methodology works and how to apply it to the brand you are managing, regardless of your field of activity or product that you offer!
After all, what is a Lean Startup?
As Lean Startups they can also be called lean startups, as they are a form of enterprise that operates with the least possible resources. These businesses optimize your management to achieve ever greater results, even though they have smaller teams than usual. The key to success in Lean Startup It is the identification and elimination of waste in the production environment, investment in technology and a simplified operation. Thus, in addition to increasing the company's agility as a whole, it is possible to create products that are more assertive and consistent with the wishes of the public. This agile business development methodology was developed by Eric Ries, an entrepreneur and author in the business area. Ele combined concepts from the management area with technological innovations and a pinch of marketing ideas, managing to arrive at a cohesive model that allows managers to streamline the operation of their brands. Currently, many projects are already born using this concept. However, even companies that did not start their trajectory in the market as a Lean Startup they may turn out to be one.
Concepts and differences between Lean Startup and traditional methods
As we know, startups are characterized by their innovative nature and aimed at rapid growth. Unlike traditional companies, which can operate based on established business models, startups are constantly searching for a business model that is scalable and sustainable. In this context, traditional business methods are not always adequate to meet the demands and challenges faced by startups. That's where the methodology comes in. Lean, which offers a more agile and adaptable approach to startup management. Check out some of the main differences between traditional methods and methodology Lean:Traditional Methods/Methodology LeanApproachLinear, sequential. The strategy is based on implementation and uses a business plan. Iterative and adaptable through repeated construction, measurement, and learning cycles. The strategy is based on assumptions and uses a business model.DevelopmentComplete development before launch, with detailed planning from the start. Development of a Minimum Viable Product (MVP) and rapid launch, with iterative planning based on continuous learning.RisksMitigation of risks before significant investment. Recognizes that entrepreneurship is risky by nature and seeks to reduce risks through rapid experimentation and frequent iterations.FeedbackObtained after the full release of the product. In case of failure, it is necessary to abandon the project completely. Obtained through the release of the MVP and subsequent iterations. In case of failure, it is possible to “pivot” and make a significant strategic change in the direction of the business.CostsSignificant initial investment Minimization of costs through the launch of the MVPCultureEmphasis on executing the established planEmphasis on experimentation, learning, and continuous improveIn short, while traditional methods emphasize detailed planning, risk reduction, and full product development before launch, the methodology Lean Startup adopts a more agile approach, based on experimentation, continuous learning, and rapid iterations.
What are the impacts of the Lean Startup methodology on business?
The methodology Lean Startup has proven to be highly influential in the business world, bringing an innovative approach that directly impacts the development of companies. By adopting this methodology, organizations can experience several benefits that result in faster and more direct growth, in addition to improving productivity and saving financial and time resources. After all, the agile and iterative approach of Lean Startup allows companies to quickly identify customer needs and preferences, as well as possible problems or flaws in their offerings. With that in mind, learn about the main advantages of adhering to this methodology below.
Advantages of joining the Lean Startup methodology
One of the main advantages of Lean Startup The thing is that, instead of relying on assumptions and detailed planning, Lean Startup proposes a mentality focused on experimentation, learning and continuous validation. This means that companies focus on developing minimum viable products or services (MVPs) and putting them on the market as soon as possible, in order to obtain feedback of customers. It's based on that feedback that the company can make adjustments and improvements, avoiding wasting time and resources in developing something that does not meet market expectations. Thus, the methodology Lean Startup contributes to a more efficient and assertive development by focusing on the fundamental aspects for business success. In addition, Lean Startup it also increases productivity by avoiding the preparation of complex plans and excessive investments in unvalidated ideas, companies save valuable time and resources. The mentality Lean encourages the team to work in short cycles, with rapid iterations and constant tests, which makes it possible to identify and correct errors quickly. This agility results in a more fluid workflow, allowing the company to adapt promptly to market changes and demands. Keeping this in mind, we realized that it's no wonder that the methodology designed by Ries gained so many followers. In addition to showing positive results in businesses in various areas of the market, it is easy to adapt and has several other advantages, such as:
- low operating cost;
- more simplified management and production processes;
- have a business adapted to the market;
- meet the needs of the public well;
- rapid business growth.
How to apply Lean methodology in business?
As we saw before, because it is a different proposal from what is normally seen in the market, the Lean Startups differ from traditional business models. To apply the methodology in a company, it is important to guide the entire operation of the enterprise through three pillars:
- Canvas plane: a business method that uses diagrams to understand and express the way in which a company generates value for its customers and for itself;
- MVP (Minimum Viable Product): the “Minimum Viable Product” is like a prototype, an initial version of the product that is made quickly and is presented to the public to test people's interest in that idea;
- Costumer Development: client development has the characteristic of always carrying out public acceptance surveys before taking a bigger step with the company. Much of this is due to the production of the MVP, which reduces the risks of the brand making a high investment in a product and not having the expected response.
These parameters end up being reflected in the form of operation as a whole, always based on the five principles of Lean Startup.
Learn about the 5 principles of Lean Startup
Entrepreneurs are everywhere
In his book”The Lean Startup', Erick Ries defines entrepreneurship as “a human institution designed to create new products and services under conditions of extreme uncertainty”. Therefore, entrepreneurs can be found everywhere and, whatever the size, sector or activity of the company, the methodology Lean Startup it has a great chance of working.
To undertake is to manage
In fact, as Ries explains, a startup does not require a specific type of management for its context of uncertainty. Thus, to undertake with a startup is also to take care of managing people, cash, production, results, and more.
Validated learning
Startups exist to learn how to develop a sustainable business in practice. This means that it is essential to experiment frequently to validate learning and test each element of the entrepreneurs' business vision.
Build, measure, learn
Pivot or persevere, that is the question. To learn whether an idea or product should go ahead, it is necessary to measure how customers react, accelerating the feedback cycle, launching a minimally viable product to the market, measuring its effectiveness and learning from that experience.
Accounting for innovation
Knowing how to measure progress, define milestones, and prioritize work is essential to understand why something didn't work out and improve the results of entrepreneurship.
Digital signature and Lean Startup: combining agility and security
Na Lean Startup, the constant search for investments and strategic partnerships can lead to bureaucratic bottlenecks that are not at all consistent with agility that the methodology offers. After all, a crucial part of this process is signing of contracts, which, if done manually and analogically, can take days to complete, in addition to entailing transportation costs and supplies. With that in mind, digital signature Of documents can be a great ally to streamline the process of validating and formalizing contracts, allowing Lean Startups Act quickly in response to market demands. With the electronic signature of Clicksign, it is possible to send documents for signature instantly and with legal validity, allowing interested parties to review, sign, and return the contract in question from Minutes.With this, entrepreneurs can focus on developing their products and obtaining feedback of clients, instead of dealing with lengthy paperwork and paperwork. Discover how Clicksign can help your company's processes go further! Get full access to the platform for 14 days, free of charge.
