lean startup
Entrepreneurship

Lean startup: understanding the method for launching your innovative project

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The Lean Startup method is a revolutionary business approach focused on launching innovative products or services. It was designed specifically for start-ups and their particular needs, but in reality suits any type of company. It can be used both to build a company from scratch and to develop a new product within an established business. Want to know more? This article walks you through the method so you can get started... while saving time.

Lean startup: definition and origins

Lean Startup is a method for developing innovative projects that was born in the world of Silicon Valley tech start-ups. Its goal: to bring a product or service to market quickly, minimising risks and costs, through an approach based on experimentation, feedback and continuous improvement.

The founding principle of Lean Startup rests on a simple observation: it is better to test your assumptions than to spend months planning. Rather than designing a perfect product before showing it to the public, the entrepreneur creates a simplified first version, the famous MVP (Minimum Viable Product), and immediately puts it in front of real users. The feedback collected makes it possible to adjust the concept, improve the offer and, if necessary, pivot to another model better suited to market needs.

The Lean Startup method draws directly on Lean Management, a production philosophy originating in the Toyota model, which advocates eliminating waste and pursuing performance through continuous improvement. It was popularised by Eric Ries, an American entrepreneur and author of the best-seller The Lean Startup (2011), who adapted these principles to business creation.

Ries drew on the work of Steve Blank, a pioneer of modern entrepreneurship, and on agile software development practices. Together, these influences gave rise to a complete method for turning ideas into viable products, combining rigour, speed and pragmatism.

Today, Lean Startup is no longer aimed only at start-ups: large companies, incubators and business schools also use it to accelerate innovation and to train future entrepreneurs in a more flexible and experimental approach to business.

Lean startup: the key steps of the method

The Lean Startup method rests on a cyclical process, based on rapid learning and continuous validation of assumptions. Three main steps structure this approach: Build - Measure - Learn.

Build: develop an MVP

The first step is to design a Minimum Viable Product (MVP), that is, a simplified version of the product or service that makes it possible to test an idea with a minimum of investment. The aim is not to launch a finished product, but to offer a working prototype able to gather the first customer feedback.

Measure: gather feedback from the market

Once the MVP is launched, the entrepreneur observes how users react. Thanks to precise performance indicators (engagement rate, retention, purchase intent and so on), they can determine whether their initial assumption is confirmed or not. This phase avoids decisions based on intuition and relies on hard data.

Learn: adjust or pivot

The results obtained are then used to improve the product or change direction. If the feedback confirms that the project is relevant, the team continues development. Otherwise, it can "pivot", that is, change all or part of the business model, the target or the features, to better meet market expectations.

This cycle is repeated several times until a solid, scalable value proposition is found, capable of supporting the company's growth.

Dreaming of launching your start-up or leading innovative projects? The Master in Management at EDC Paris Business School offers comprehensive training in management, strategy and entrepreneurial leadership. Thanks to a teaching approach based on experimentation, students learn to design, test and grow their projects in a stimulating environment, close to market realities.

EDC Paris Business School also offers specialised pathways to strengthen your managerial and strategic skills: the MSc Project Management to master the running and success of complex projects, the MSc Entrepreneurship and Innovation to turn your ideas into high-performing businesses, and the MSc Corporate Finance, to learn how to steer financial performance and support growth.


Lean canvas: a central tool of the lean startup method

At the heart of the Lean Startup approach is an essential tool: the Lean Canvas. Created by Ash Maurya in 2010, this visual tool is an adaptation of Alexander Osterwalder's Business Model Canvas. It was designed for entrepreneurs who want to design, test and quickly adjust their business model without going through a long, rigid business plan.

The Lean Canvas takes the form of a table (so, a single page) divided into nine boxes, each corresponding to an essential aspect of the project:

Problems: what concrete difficulties do your customers face?
Customer segments: who are your product or service aimed at?
Unique value proposition: how is your offer different and relevant?
Solution: what are the main features that address these problems?
Channels: how will you reach your customers (advertising, social media and so on)?
Revenue streams: how does your project generate value?
Costs: what are the main expenses involved in carrying out the project?
Key metrics: how do you measure the performance of your model?
Unfair advantage: what makes your offer hard to copy?

The strength of the Lean Canvas lies in its simplicity and flexibility. At a glance, it gives an overview of the project, makes collaboration between team members easier and helps to quickly identify points for improvement.

Concrete examples of start-ups that used lean startup

Many successful companies have built their growth on Lean Startup principles, proving the effectiveness of this method in creating and consolidating innovative projects.

Dropbox: test before you build

Before even developing its online storage solution, Dropbox first set out to validate its idea. Rather than investing heavily in developing a complex technology, the company created a simple demo video showing how the future service would work. Internet users' enthusiastic reactions confirmed market interest, which allowed Dropbox to raise funds and launch a product perfectly aligned with user expectations.

Airbnb: an MVP to validate a concept

In 2008, Airbnb was born from a simple idea: letting individuals rent out an unused space to earn extra income. To test the viability of this idea, the founders started with a very limited prototype, a website with just a few photos of apartments in San Francisco. The first positive feedback allowed them to refine their model, improve the platform and attract their first investors.

Zappos: understand customer needs above all

Before becoming one of the largest online shoe retailers, Zappos first tested its concept with a minimalist approach. Its founder, Nick Swinmurn, photographed products in physical shops and put them online to see how buyers reacted. This full-scale test, carried out with no stock or in-house logistics, validated market interest in buying shoes on the internet.

The Lean Startup method reduces time, costs and risks, but that is not all: it simplifies the process of creating an entrepreneurial project and adapts more easily to changes in business model and to environments with a high degree of uncertainty. All of this brings a double benefit: it reassures investors and strengthens the confidence of colleagues internally. You have everything to gain from adopting it!

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