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Business

The Lean Startup

by Eric Ries

How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses

1

Build MVP in one week

The simplest version that generates learning

Identify the 1-3 core features of your product. Build only those, even if done poorly. Goal: show the idea to customers, not impress them.

2

Measure what really matters

Actionable metrics vs vanity metrics

Ignore views and downloads. Measure: % customers who repeat purchase, customer acquisition cost, retention rate. One metric = one specific behavior.

3

Learn from real customers

Get out of the building and talk to people

Interview 10 potential customers this week. Ask: "What's your biggest problem with [area]?" Don't sell, just listen and take notes.

4

Fast Build-Measure-Learn cycle

Iteration speed beats perfection

Establish 1-2 week cycles: build something, measure response, learn what works. Reduce cycle time each time.

5

Plan to fail (and pivot)

Failure is learning

Every month ask: "Am I building what customers really want?" If the answer is no for 3 months, plan a radical pivot.

6

Establish baseline before optimizing

Innovation accounting

First week: establish starting numbers (e.g., 2% conversion). Second week: test small changes. Don't optimize until you have baseline data.

7

Do experiments, not bets

Test removable hypotheses

For each new feature, write: "I hypothesize that [feature X] will increase [metric Y] by [Z%] because [reason]." Test for 2 weeks, then decide.

8

Cohort analysis to understand trends

Group users by acquisition period

Divide customers by signup month. Compare behaviors: does the January cohort behave better than March? Why?

9

Identify your engine of growth

Sticky, viral or paid

Decide: do you grow by retaining customers (sticky), word of mouth (viral) or buying traffic (paid)? Focus everything on ONE engine at a time.

10

Validated learning is real progress

Validated learning > task completion

At week's end don't ask "What did I finish?" but "What did I learn about my customers that I didn't know Monday?" Document every insight.

Tags
startupbusinessmvpinnovationentrepreneurship
The Lean Startup by Eric Ries | MonkAI