Anglophone idiomatic movements are often very metaphorical and even symbolic. The symbolism is inherent in the Anglo-Saxons mentality. We can describe this concept briefly. It means that this methodology has been developed for those cases where the founders fail to find the optimal investor and have to settle for what they have.
Systemic and creative approach in times of financial crisis
You should not forget that wildlife does not tolerate such a factor as lack of physical strength and agility. The lack of sharp teeth and claws in wild animals is that they compensate for their ingenuity in most cases. Throughout their lifetimes, helpless and defenceless mammals have emerged victorious in the evolutionary struggle and so far reign successfully on the planet, and their main rivals have been powerful armoured lizards.
Business has a similar structure. So, generous and even unlimited investments relax young businessmen often and lead only to the misuse of funds, as well as the theft of the budget instead of driving well into the project.
Lean Startup is not so much a low start and limited budget. It is also the implementation of a business model of the result, which will be realised with the help of planning and forecasting. Investors give the founders money for the project, but only if he or she can show convincing evidence of guaranteed returns.
You can achieve warranties through the iteration method. A large-scale project is divided into tiny cycles in which an acceptable outcome is predicted. This is a reliable method, and with this you can be sure that your investors will be optimal.
These concepts resemble the Cauchy theorem of higher mathematics, which can prove any phenomenon within an infinitesimal segment. At the same time, any investor who cares about global goals of his activity does not need to know that the laws of physics work differently at the level of the microworld.
Reduction of business risk
Start-ups are always a zone of high commercial risks and risky investments. Risk limitation in a lean start-up is achieved by dividing a large-scale project into single components in the iteration stage process. This procedure includes tests with a high level of reliability. This is a test in which a large number of variables are accounted for. On the other hand, if only one element is exposed to such changes, the results of efficiency or failure will become more apparent.
Strong feedback to the target audience at each stage
There is one necessary factor for any business project, such as a correct assessment of the real need of the segment of the consumer market you have chosen. So, the specialist will carry out marketing research in several directions to find reliable answers to the question about the current situation in demand and supply:
- Free surveys and questionnaires in social media.
- Paid focus groups.
- Study reviews of buyers of test batches of the product in online stores.
System analysis will help you refine and narrow down the actual target audience for the product if you use open online sources as part of your research. This effect will be even more reliable if your product is sold in a format that consumers have not yet seen on the global market.
The startup differs from the traditional business plan by its high speed implementation. This is the reason why the start-up owners should be able to provide instant feedback:
- You can draw conclusions from the marketing analysis procedure, which will tell you that, on the one hand, the buyer is satisfied with everything, but at the same time it is inconvenient for him to form the sale of products.
- You should immediately adjust the aspect that caused your consumer discomfort.
- A sequence of limited iterations is a procedure in which small efforts and a small business budget help to bring your new idea to a state that is optimal for its sale on the market.
Lean Startup is a concept that has proven so effective and promising with its practical use that today even the largest corporations use it in their professional activities.