Eric Ries first launched his Startup Lessons Learned blog back in 2008 focused on what he dubbed the “Lean Startup Methodology”. His new book, The Lean Startup, expands on those lessons and serves as a guidebook to anyone looking to use the lean approach when starting their company.
The book has been a big hit in the short time its been out, debuting at #2 on the New York Times Best Seller List (Advice & How-To, where business books fall). His launch tour included a sold out event of 400+ people at the Chicago Lean Startup Circle’s September meeting held at the Thorne Auditorium in the Northwestern University School of Law Chicago campus.
Book signing and discussion (and a few hiccups)
The Chicago Lean Startup Circle is a Meetup group 1500 members strong. This was their biggest event so far, and it showed from the disorganization and delays when trying to check in at the event (which included a copy of the book). I wasn’t even aware that Eric was signing copied until I happened to walk past the table he was sitting at.
Check-in troubles aside, once Eric sat down with the evening’s host and organizer Bernhard Kappe he quickly won over the audience with a humorous look at his background, how he became an “expert” and how often his lean approach was scoffed at. One company even saying the approach Ries used with his company IMVU, an online chat community using 3D avatars) would wouldn’t work with their 2D avatar chat application!
Thoughts on Lean Startups
I won’t rehash the Lean Startup methodology here, or give a review of the book (since I haven’t finished reading it yet), but Ries gave a good overview of the approach along with his insights.
One comment that struck me is that Entrepreneurship is usually portrayed as too sexy or exciting, and that it should be more boring. For every one “Social Network” there’s a million other dorm-room startups that go nowhere. Entrepreneur should be a title at every company, not just startups.
Ries also said that if you want to be right on most occasions, be a cynic. Saying something will never work is usually right, but “do you want to be right or do you want to change the world?”
That’s where the lean startup methodology shines. By taking the scientific approach of creating a hypothesis, experimenting and validating the results you’ll know what your customers really need faster and adjust your business accordingly.
Put people in a behavioural situation that will test your hypothesis. Establish a baseline, then tune your engine as needed or pivot the business. (And yes, Eric Ries is often credited with coining the now over-used term “pivot”)
Vanity metrics, things like total user counts, aren’t as important as actionable metrics that help you find sustainable customers. Ones that bring you new business, either through repeat orders or by brand advocacy bringing in new customers.
The Lean Startup Challenge
If you’re thinking of trying a lean startup now is a great time. The Chicago Lean Startup Circle is kicking off a Lean Startup Challenge, a six week program with $50,000 in prizes to accelerate your new venture. (Deadline for signup is Oct. 1st). A recent survey showed that Chicago Lean Startup Circle member companies have created over 7000 jobs already.
