Mastering the Lean Startup Approach: Your Guide to Successful Entrepreneurship

Startups that follow the Lean Startup principle develop by experimenting with scientific research. And these startups depend only on such experiments.

For example, when Amazon started in 1995 Jeff Bezos started selling books because he knew there would be a good demand for them online.

Viral products like Facebook and PayPal have used it well. When a customer sends money to a friend using PayPal, the other friend is forced to create an account on PayPal himself.

Start small and grow one step at a time to build a billion-dollar startup. Zappos is the largest online shoe store in the US and the world, with more than $1 billion in annual sales.

Today, it is considered one of the most successful and customer-friendly e-commerce company in the shoe industry, But it started differently Its founder, Nick Swinmurn, was very curious that, at that time,

there was no online site with good shoes where all the good brands of shoes could be found at the right price. He decided to do a small experiment for this.

In his experiment, he first wanted to understand whether customers are interested in buying shoes online. To find out, he started asking shoe shops in his locality if he could take photos of their shoes.

In return for taking pictures, he would post the images online, and if a customer bought shoes online, he would come to the shoe shop, buy the shoes at the total price

and supply them to the customer. This is how Zappos started with a small, simple product. But through this small experiment the company started understanding many other things also.

To sell shoes, Zappos would need to interact with customers create an automated payment gateway, manage shoe returns,

and have a team to handle customer inquiries. People did not know these things then in the market research 1999. So, If Zappos trusted the research data that was already available in the market.

In that case, they might have understood what people wanted but would have needed to gain such profound knowledge, which they got only by working in real life.

The company learned a lot more from this. 1. This gave them more accurate data about customer demand and how many people want to buy shoes online.

2. They found that people prefer to shop more by offering products to customers at prices equal to or slightly lower than the offline market. And sometimes people like to shop more because of offers.

To understand the startup world, today we will learn to Eric Ries' book, "Lean Startup", to find out why most things fail,

and what habits successful startups have. Ries himself is an entrepreneur, and based on the concepts of this book, he created the Lean Startup Methodology,

which quickly became the foundation guide for successful startups in the world. Eric lives in San Francisco with his wife and two children and has played an essential role in many successful startups.

In this, you will learn that if the Lean Startup principle had been adopted in failing startups, most startups could have been prevented from falling. Lean Startup is about knowing who your customers are and what they want.

Perhaps by now, like most people, you too would believe that every startup rushes towards success with time, but in reality, it is not so;

look at this graph. Most of the new startup founders believe that the growth will follow the line drawn on the left side of the graph;

when they launch their product in the market, they will move forward a little and keep moving forward slowly. But the reality is very different from this.

They may be successful in one product but fail in another. There may be some growth in the third,

then a lot of growth in the fourth, but it may go down again in the fifth. So all this continues.

So, if you are a startup, you have to get used to failures and be ready to start from zero again every time,

but there is no need to be disappointed because whoever fails learns the fastest. Remember these four important things for the Lean startup principle:

1. The first is that entrepreneurs are everywhere. 2. The second thing is that entrepreneur means management. By managing people with different skills, you can solve any problem in the market and earn profit in return.

3. The third thing is valid learning; your startup's job is continuously learning what your customers want.

This way, you can build a robust business model. 4. A startup is like a group designed to create a new product or service under uncertainty.

So, as a founder, you need to follow the cycle of invention, measurement and learning. The Lean Startup book defines a scientific method for running startups and launching new products.

This is a concept that is adopted in startups and successful companies all over the world. Whether your company is small or big,

whether you are in a junior or senior position in the company, this book will help you a lot. If you are an entrepreneur,

small business person, or developer and want to become one of the top leaders in your field, this video will be handy for you.

So watch the video till the end. If you are coming to our channel for the first time dont forget to subscribe. The author has taught the lean startup principle in three parts.

First, about vision, this part will guide you in building the foundation of your startup. It explains who an entrepreneur is

and how a learning mindset is more important than a winning mindset for a startup. In the second part, we teach you about STEER, which strengthening the body of the startup; In the third part, you will learn ways to grow the company.

Part 1: Vision To follow a Lean Startup, you must define three things the vision, the strategies required to reach the vision, and the product.

Remember that the strategy constantly changes when a central vision is needed, or you must stick to a single idea. Therefore, always be ready to change your strategy according to your vision and customer demand.

So first of all, make a vision as to which problem of the people you want to solve, then make a strategy as to how you will do it,

and finally make a product that will solve that problem. Remember that the product should be a by-product of your strategies or planning. Remember that the product should be a by-product of your strategies or planning.

To make it, plan the team and things so that whenever there is a need to make some changes in the product, you can immediately change it by making changes in the strategy.

If the main goal of entrepreneurship is to build a company under great uncertainty, then the most important task is to learn. Understanding which aspects of our products and strategies are working well

and which are failing is one of the most critical learnings for a business. This learning process allows us to become customer- oriented while improving our products and services.

With learning, you will be able to reach your final goal The more your company focuses on learning, the brighter the startup's future will be,

and the more ways will open to take advantage of new possibilities. Sometimes, you will discover a lesson by incurring losses and sometimes, without incurring losses. But every time, you will find that some of your efforts could be more useful and unnecessary.

But this will also help you determine which efforts are working and generating value. Startups that follow the Lean Startup principle

develop by experimenting with scientific research. And these startups depend only on such experiments. For example, when Amazon started in 1995

Jeff Bezos started selling books because he knew there would be a good demand for them online. After that, he started listing many different products one by one on Amazon

and paid more attention to those that were in high demand. Due to these experiments, today, almost every product that we use in daily life is available on Amazon.

These types of startups can do this because they know that to learn about their product and strategies truly, a startup must start with a vision

and move forward by experimenting one by one. It gives a simple mindset about what you think will happen in the company. Then, by testing, you launch your product or service in the market

and practically understand what the customer needs. Part 2: Steer As we saw in part one.

Its practical application and taking customer feedback gives ideas to create a strong and profitable business model. You can learn this only by doing something practically. What you will learn from this

will be better for your startup than making decisions based on news or pre-existing research data. Because of this, you will also discover new ways to fix the problems you have faced, and your ideas will get a unique shape.

This is the base of the build-measure-learn-feedback loop. In this part, we will know it in detail. After clearing your vision, first establish your values.

Eric explains it with an engine. Every time you improve a product or method, you automatically redesign your startup engine

and try to get it to work. And once you reach that moment when the engine is ready to run and starts running,

you can move forward by working on those strategies. Establishing value is the first step of this concept; at this point, you need to figure out what value your product or service will create for people.

Once you have established this value, the next step is to convey this value to as many people as possible. And always remember the reason behind your growth

i.e. good quality of your product and good management. Eric explains that once you have created your value and a system for delivering it to as many people as possible,

the next step is to create a minimum viable product (MVP), a physical version of your product that you can use during the build phase.

The idea of MVP is that it will be built in minimum time with the last effort. In simple terms, the idea is to start getting feedback from your product or service as soon as possible

so that you can start learning and developing your product. Thus, MVP is the fastest way to run the Build- Measure-Learn Feedback Loop cycle with minimal effort. So that you can quickly understand what is useful, increase it

and keep removing useless things. To explain how MVP can be used, the author gives some examples of successful companies;

Dropbox’s project which they felt people needed and should create a product to fulfil this need, Before started working on this

they made a video to show their customers in which they explained that value, what they wanted to give to the people and the problems he tried to solve.

They also asked people to provide feedback about the problem they wanted solved. Based on this research, the chances of success of the products made by the company increased,

and the sales of these products started growing. Similarly, a family food on the table company started with just one customer and one chef.

Starting small in the beginning, he understood the needs and problems of the people and kept on scaling up by fulfilling them.

Therefore, MVP is essential for startups so that you can understand well what customers want. There are two ways to get your startup moving in the right direction:

1. Understand its current condition as well as possible and understand any results that emerge from experiments. whether good or bad

2. To reach the final goal, keep learning continuously and experimenting as many times as necessary. In an interview, when the author was asked how he understands that a startup is moving in the right direction,

the author said that if better changes are being made in it, the number of customers is increasing, and the customers respond well.

That means the startup is on the right track. Part 3: Grow The startup growth engine is the mechanism

startups use to achieve sustainable growth. A simple rule for sustainable development is to do something that brings new customers through previous customers.

There are four ways you can do this: 1. Mouth Publicity: Sales of most products increase very quickly through word of mouth from one customer to another.

For example, when the author bought his first TiVo DVR, he loved it so much that he couldn't stop telling his friends and family about it. And very soon, his entire family started using it.

And we also do this generally in our daily life. 2. Through product use: Get your product used by as many people as possible. When people use luxury goods for fashion or to show off

they influence it by seeing others. When you see someone wearing new clothes or driving a new model car,

you get influenced to buy that product. Viral products like Facebook and PayPal have used it well. When a customer sends money to a friend using PayPal,

the other friend is forced to create an account on PayPal himself. In this way, the company gets a new customer. 3. Through advertising: Most businesses promote their products to attract new customers.

If you want sustainable growth, remember that promotion payments should be made from revenue money and not from investment capital.

As long as the cost of acquiring a new customer, called marginal cost, is greater than the profit you get from that customer, you will be in profit.

Therefore, try to reach as many customers as possible while minimizing this cost. 4. Create the need to purchase repeatedly: You can sell some of your products as a monthly or annual membership.

With this, customers will buy the goods often, and your company will grow sustainably. Village Laundry Service (VLS) case study

Many years ago, only a few houses in India used to have washing machines. Because it was expensive, therefore, only 7% of people could afford to buy it.

Most people used to wash clothes with their hands or got them washed by a washerman or in a laundry service. The washermen used to take those clothes to the river.

First, the clothes were cleaned by hitting them on a stone, then washed in river water. It took the washerman ten days to pass so many clothes, dry them and iron them,

and then he would return the clothes, and it was not that the clothes were still washed clean. Akshay Mehra saw an opportunity in this.

He was a branch manager at Procter & Gamble Singapore for eight years. He was a branch manager at Procter & Gamble Singapore for eight years. His mind was behind the Pentin and Tide brands in India and Southwest Asia.

Akshay Mehra wanted to provide accessible and affordable Ladi service to the people. Upon returning to India, Akshay Mehra collaborated with Village Laundry System.

Together they experimented to find the best business approach. His first experiment was with a washing machine loaded in a pick-up truck. They used to park this truck on a busy street in Bangalore.

The idea of this pick-up truck cost VLS only Rs 58,000. First, he had to determine whether people would pay him to wash their clothes. By the way, the clothes were not washed in the machine installed in the truck in front of everyone;

that was only for marketing purposes. The clothes were taken somewhere else to be washed and then the washed clothes were delivered to the customer within 24 hours.

VLS parked that truck in different places in the city for a week to learn more about the customers and how they could encourage more people to wash their clothes.

Did people want faster cleaning time? Or people were conscious of cleanliness. Or did the customer have some different needs? VLS learned that most customers were worried

that the truck might run away with their clothes. So, to solve this issue, VLS started using customer-friendly mobile kiosks instead of trucks. In his second experiment, he brought the kiosk near a grocery store.

Mobile kiosks also found out that people not only want their clothes washed but also want them ironed. They also learned that some customers were ready to pay double the amount for clothes washed and pressed in 4 hours.

This experiment of VLS was quite successful. Later, they came up with a final product, a 3-foot by 4-foot mobile kiosk with a prostate washing machine and a dryer.

He used good quality detergent and clean water to wash clothes. After this successful experiment, 14 village laundry service (VLS) kiosks started running in big cities like Mumbai and Bangalore. CEO Akshay Mehra proudly said

CEO Akshay Mehra proudly said we served over 10,000 customers across all our outlets last year. Like the story of Zappos, we can see how VLS also applied the principles of Lean Startup.

Akshay Mehra was also initially still determining his startup. He had yet to learn whether people would trust his laundry service. Secondly, he released the starting product as an experiment.

The pick-up truck was their MVP, i.e. Minimum Viable Product, which did not cost much money, nor did it take much time and effort to develop it.

They could quickly test their confidence in this low-cost risk. Thirdly, VLS Build Measure Learn and Create from customer feedback. The result of this experiment was that in the end, they got a final product

that met the customer's needs. This was a big reason why Village Laundry Service became a sustainable business. What if VLS had made its final product before the market launch?

What if they had spent years planning the perfect marketing strategy? What if they had surveyed launching the product? All these are traditional business methods adopted before any new business.

But these old methods never work for a startup. Starting any new business is a very uncertain situation. Therefore, at this time, startups should invest less in such a product

and spend less time on strategy, which does not guarantee success. Until you deal with a real customer,

you cannot be 100% sure. For any new business, it would be better to start small With the help of the experiments and the Build-Measure-Learn Method,

With the help of the experiments and the Build-Measure-Learn Method, you will finally get a perfect sustainable product. Now let us understand about the case study of groupon company.

Have you heard the name of Group On? This was the first online site that provided group coupons to customers.

Seeing its increasing success, many other sites also started copying Group On. But it was not that Group On began to overnight. Group On's first customers were twenty people

who purchased Buy One Take One Pizza coupons. Andrew Mason, its founder, initially did not want to make it a social commerce platform. But Mason and his team made a Minimum Viable Product.

Group On started as a WordPress blog, where Mason and his team posted something daily. where Mason and his team posted something daily.

His first blog was, "This T-shirt is available in red colour and large size. If you want to get a different colour or size, then email us. then email us.

Group On did not even have a form for orders then; Group On did not even have a form for orders then; the idea was straightforward but worked.

From this experiment, it became clear that there is indeed a demand for it. Many customers found Group On to be helpful. Mason and his team then created actual coupons with the FileMaker program.

Group On's first coupon was in a pdf format. They used to mail these pdf coupons directly to the customer. In its first year, Group On was busy managing things.

But in his journey, his WordPress blog, FileMaker pdf, and those 20 pizza coupons also have a special place.

The company's growth was record-breaking. They became the fastest company to reach the $1 billion benchmark. Today, Group On helps local businesses find new customers.

It provides special affordable deals in 375 different countries of the world. In this way, the job of MVP, i.e. Minimum Viable Products, is to help the startup by determining customer demand.

Therefore, MVP can be developed cheaply, easily and quickly. Through this, the startup can soon start its build-measure-learn cycle. To do business traditionally It has to go through a long development period.

To do business traditionally It has to go through a long development period. then it became perfect. But MVP methods are more effective.

These are very helpful in creating the best product design for the startup, and the most important thing is that MVP automatically gives you answers to many questions related to business and marketing strategy.

Thank you friends, this is the book summary of Lean Setup. Let us revise what we learned once so that it becomes easier to remember. There are five essential ideas in the Lean Startup Method.

1. Number one, starting any new business from your garage is optional. It doesn't matter where you start. In a startup, you cannot predict anything in advance;

any organisation that begins a new service or product is a startup any organisation that begins a new service or product is a startup because it has no surety about whether it will work.

Therefore, Lean Startups can apply to every industry, every sector and every company of every size. 2. Management comes second.

When you talk about startup, it does not just mean the product. The people making that product also join the startup. And those people or that institute need to be managed,

mainly because they are very uncertain about that startup. 3. Number three is to validate learning, which means such experiments are done in business to know

what effect those experiments will have on the company. This is just like any scientific hypothesis. This is also important because the startup's goal is the company's long-term survival.

This is about more than just earning profit for some time. 4. Build-Measure-Learn is at number four. The primary tasks of any startup are to create new products from ideas,

measure customer feedback, and learn from that feedback whether or not this thing will work further. 5. Number five is PROGRESS; our startup should get into the habit of following a build-measure-learn cycle.

As soon as feedback is received, it should work on its shortcomings. Startups should know which process to proceed and work on to achieve a sustainable business. Thank you friends. thanx for watching this video till here and thank you so much for all the support

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