Lean Startups

Lean Startups Methodology

Why do startups fail?

Often startups begin with the idea of perfecting a product, then release it to the marketplace. They spend too many months assuming customers will love the product but the actual response wouldn’t be as to how they expected it to be. This was because they never spoke to their prospective customers and never determined if the product was actually interesting or not.

Lean startups to the rescue:

This methodology was adopted from lean thinking which helps startups to create, manage and deliver desired products to consumers faster. The lean startup method teaches you how to drive your startup and reduce waste, how and when to steer, how to persevere and grow (growth hacking) while ensuring you burn the least amount of capital.

This is accomplished by focusing only on work that brings value to the customer. There are multiple iterations, where a revised version of the product is released

How does it benefit startups?

Fail early and fast:

With the help of lean startups, you can deliver an MVP (Minimum Viable product) using the on-demand platform sooner, deliver it to your customer, gather feedback and understand if your product is actually of some interest to customers.

Eliminates uncertainty:

The lean startups main motive is not only failing fast, it is also failing cheaply.

Lean startups focus mainly on customer and startups interactions thus avoiding unnecessary confusions and wrong assumptions to happen in the first place.

This way startups will be surer of what a customer wants and will deliver those revised products in future iterations based on feedback from the customer. Also, if a product is scrapped, it wouldn’t have caused much loss to the startup.

Work smarter, not harder.

Lean startup methodology works smartly.

You don’t build an entire product and then wonder if it’ll be a hit in the marketplace.

Instead, your question and see if should the product be built, will it have any value and then go ahead and build it.

In this way, you’ll attract potential customers who are interested in your product before you even build it entirely.


Lean Startups methodology


Develop an MVP

In this phase, we will build the simplest version of our product which will still be of some use to our customer.

Over time, based on customer feedback, needs, and requirements we will build release newer versions of the product in the future iterations.

Lean startups follow a build-measure-learn feedback loop: ideas are turned into products, based on the response we learn and then decide whether to preserve and rebuild or discard the product.

Validated learning.

It simply means that you have to validate your MVP for various inputs.

Create a hypothesis, A see if it works perfectly and generates correct output with your MVP. Did it work? If not. Move onto hypothesis B. Rinse and repeat.

This way a startup can manufacture a high-quality product.

You needn’t have to wait till the beta launch of your product to earn some money because potential customers would have already evaluated your product and thus would be interested and will buy it thus, they will invest money on it.

Real life example of Lean Startup.

Zappos (acquired by Amazon)


A hypothesis of having an online store for shoes.

Action taken:

Took pictures of inventory from local shoe vendors. In exchange, the idea owner would post pictures online and would purchase those shoes at a full price if someone purchased them online.


There was a huge demand and people did buy shoes online, at the same time a better site was built along with marketing and managing the inventory.

The owner sold this to Amazon for 1Billion dollars.

Wondering where Lean Startup came into the picture?

In Lean startup methodology startup builds are really nothing but experiments. The idea of having the online store for shoes was just an experiment.

Also in Lean startup methodology, one learns how to build a business which will run for a long time. So this is an ideal way which gives us the framework to build our product and sell it after understanding our customer needs.


Wrapping up

Therefore, lean startups help new ventures launch their product easily, quickly and cheaply by understanding what the customer wants. This is also less risky compared to other traditional methods thus helping new entrepreneurs avoid common mistakes and have a higher success rate at the marketplace.





At Recro we combine Design Thinking, Lean and Agile to help you achieve market-leading  performance.

We partner with our clients with the aim to transform their business challenges into growth opportunities.