Lean Startup Methodology and Minimum Viable Product (MVP)

Adapting our product to what the market demands and not to our point of view is the most appropriate thing to do when starting a new project. For this reason, the Lean Startup methodology It is the fashionable concept in the field of entrepreneurs, focusing attention on customer needs, obtaining feedback with them and improving the final version of the product. The term was coined by Eric Ries in 2008 in his book The Lean Startup Method, in which he defined this methodology as “a set of practices designed to help entrepreneurs increase the chances of creating a successful startup. It's not an infallible mathematical formula, but an innovative business philosophy that helps entrepreneurs escape the traps of traditional business thinking.”

What is the Lean Startup Method?

The method consists of validated learning, that is, validating one by one the hypotheses that are put forward to achieve the final product or Startup definitive. In this way, we can define and shorten the development cycles of our product, obtaining the opinion of the target audience at various stages of the process in order to adapt the project to their needs without margin for error. However, the Lean Startup Methodology It does not guarantee definitive success, but rather it makes possible failure much cheaper and the risk is lower by testing small hypotheses instead of the final product. These prototypes that are exhibited to the customer are called Minimum Viable Product (MVP).

Minimum Viable Product (MVP)

El Minimum Viable Product it is a basic product with essential features to test the public's reaction to the final product or service. Thanks to this project, the team can collect the maximum amount of validated knowledge about consumers and the market, a process that does not require much effort. Thus, if the hypothesis proves inadequate, we can Pivot (change the business strategy) with respect to the initial idea, proposing alternatives closer to the optimal strategy. In this way, it is the market that guides the business strategy. With the Lean Startup method, the business is built as more knowledge is obtained from the market, investing significant sums only when learning has been achieved. As a result, it saves on the amount of resources invested in the initial phase of a business, whether time or money, and allows more investment when the chances of success are high. To apply this strategy in a startup, it is necessary to focus on the central core of the model, the methodological circle. These are three steps designed as a circle in constant motion, called a feedback circuit: Create-Measure-Learn. First of all, it constructs the MVP with sufficient characteristics to publicize the product in the market and define a potential customer profile; then a method of metering reliable and effective by evaluating the data obtained; finally, a learning of the real needs of the market with respect to the product created.

Steps to apply the Lean Startup Methodology

It may seem complicated to put it into practice, but if you summarize it in steps, it's much easier.

1. Get to know your customers before launching a company to the market.
2. Idea your solution to their problems.
3. Shape your business model.
4. Develop your product or service prototype.
5. Get the customer's first impressions.
6. Redesign your product or service based on the data obtained from the target audience.
7. Build your conversion funnel and measure the results.
8. Launch your product or service.

In short, the Lean Startup methodology helps to save time, money and test an unfinished product to find out if it is well received by the market and make decisions based on the results. It is important to have this methodology integrated into the daily life of a Startup, should not be applied only at the start or launch of the product. Whenever it is possible to validate a new idea that can be added to the business quickly, at a very low cost and without building it to the end, you will be accelerating your project.