How do I start a startup?

TLDR: Read this book.

Eric Reis created the term “minimum viable product (aka MVP)” and invented the lean startup methodology. When it comes to one book on starting a business, this is the best book out there. The Lean Startup (free audio book, $12.99 on Kindle).

Starting a business is a daunting task, and often entrepreneurs get so caught up in their vision that they end up investing all their resources into an idea that ultimately fails. Eric Ries’ book, “The Lean Startup,” provides a methodology that helps entrepreneurs test their assumptions quickly and cheaply, so they can pivot or persevere based on customer feedback. The lean startup approach has been widely adopted by entrepreneurs and has been responsible for creating some of the most successful startups of our time.

What is the Lean Startup Methodology?

The Lean Startup methodology is centered around the idea of “validated learning.” Rather than investing a lot of time and money into developing a product or service, entrepreneurs are encouraged to test their ideas as quickly as possible. They build a minimum viable product (MVP) that has just enough features to test the core idea and gather customer feedback.

Once they have an MVP, entrepreneurs use a build-measure-learn feedback loop to continuously improve the product. This cycle involves building the product, measuring its performance, and learning from the data to inform the next iteration. The goal is to create a product that solves a real customer problem and that customers are willing to pay for.

The Lean Startup methodology is all about being agile and responsive to customer feedback. It’s about getting a product to market quickly, testing assumptions, and making changes based on what customers are telling you.

Real-World Examples of the Lean Startup Methodology in Action

Dropbox: One of the most famous examples of the Lean Startup methodology in action is Dropbox. Drew Houston, the CEO of Dropbox, started with a simple idea: people needed an easier way to store and share files online. He built an MVP that was nothing more than a video demonstrating how the product would work. He posted the video on Hacker News and immediately received hundreds of signups.

From there, Houston built a functional prototype that he released to a small group of beta testers. The beta testers provided feedback that allowed him to make improvements to the product, and he continued to release new versions of the product to a larger group of testers. By the time Dropbox officially launched, the product was much more polished and had already generated significant interest.

Zappos: Another great example of the Lean Startup methodology in action is Zappos. Tony Hsieh, the CEO of Zappos, started by testing the idea that people would be willing to buy shoes online. He went to local shoe stores, took pictures of the shoes, and posted them online. When someone made a purchase, Hsieh would go back to the shoe store, buy the shoes, and ship them to the customer himself.

This MVP allowed Hsieh to test the idea without investing in inventory or a website. He quickly learned that people were willing to buy shoes online, and he used that feedback to build a more robust website and inventory system.

Why is The Lean Startup an Essential Book for Creating a Startup?

The Lean Startup (https://amzn.to/3EQF9JI) is an essential book for anyone who wants to start a business. Here are a few reasons why:

It teaches you how to test your ideas quickly and cheaply.

One of the biggest mistakes that entrepreneurs make is investing too much time and money in an idea before they know whether it will work. The Lean Startup teaches you how to test your ideas as quickly and cheaply as possible so you can validate your assumptions before you invest too much in the idea.

It emphasizes the importance of customer feedback.

The Lean Startup puts the customer at the center of everything. By constantly testing your product and gathering feedback from customers, you can ensure that you’re building something that people actually want.

It encourages agility and adaptability.

The Lean Startup is all about being flexible and responsive to change. By embracing the build-measure-learn feedback loop, you can quickly make changes to your product based on real data.

To get your copy, The Lean Startup (free audio book, $12.99 on Kindle)