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Lean Startup Principles for Hardware Entrepreneurs
The Lean Startup methodology is a principled approach to new product development that can be applied to startups and corporations alike. While the Lean Startup approach is most often attributed to technology startups, it can be used by businesses of all kinds and at all stages of growth. The five principles of the Lean Startup guide you through the product development process while maximizing business acceleration.
The Five Lean Startup Principles:
- Entrepreneurs are Everywhere
- Entrepreneurship is Management
- Validated Learning
- Innovation Accounting
At the core of these principles are three goals: eliminate uncertainty, work smarter and continuously validate learning.
By eliminating uncertainty as well as a “just do it” mentality, you are able to take a measured approach to product development. Creating tools that constantly and accurately test your vision provide your startup with the necessary insight to know when to pivot or move forward.
Instead of asking yourself, “Can this product be built?” the lean methodology asks you to take a step back and instead ask, “Should this product be built?” By changing your mindset in this manner you are asking the question, “Can we build a sustainable business around this product?”
Gathering the data to answer these questions will connect you with early-adopters. With each prototype, you are able to test your product with these customers and garner feedback. By the time you are ready to begin distribution, you will already have established customers in place. By working smarter, you save business resources, set a methodology around product development and ultimately eliminate uncertainty.
Embracing validated learning shrinks the product development process and can save a significant amount of time and money for your startup. Validated learning stems back to the idea of finding your early-adopters and target market early on. When you have open communication with this audience you are able to rapidly adapt changes that they value.
Too many startups begin with an idea for a product that they think people want without actually asking their target customers if they would use it, and more importantly, purchase it. Speaking to prospective customers is critical and can often mean success or failure for a startup. Congruent with the validated learning concept, is the development of a Minimum Viable Product (MVP).
What is a Minimum Viable Product?
“The minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning with the least effort.”
The core principle of the Lean Startup method is the build-measure-learn feedback loop. The first step in this process is to establish the problem that needs to be solved. Once the problem is established, an MVP is developed to find a solution as quickly as possible. At this stage, time is of the essence. Once an MVP is established, you then work to fine tune it with measured metrics and customer feedback. When the measurement and learning aspects of the feedback loop are done correctly, your team will be able to decide if the startup is moving in the right direction or if a course correction is necessary. All successful startup processes should be geared to accelerate this build-measure-learn feedback loop.
The Lean Startup Principles have been shown time and again to speed up product development and successfully launch products into the marketplace. While this business methodology has been embraced by technology startups, hardware entrepreneurs are seeing its benefits and incorporating it into their own businesses as well.
Have questions about the Lean Startup methodology or the product development process? Contact us, firstname.lastname@example.org
Startup Connector is a Manufacturing Accelerator helping companies commercialize—turning ideas into products.