Eric Ries
Eric Ries is an American entrepreneur, blogger, and author of The Lean Startup, a book on the lean startup movement. He is also the author of The Startup Way, a book on modern entrepreneurial management.
“The goal of a startup is to figure out the right thing to build that customers want and will pay for as quickly as possible”
The “Build – Measure – Learn” Feedback loop
Formulate the hypothesis and strive to validate or reject them
“Everything is a Grand Experiment”
==> It’s way better to observe than to ask
“Everything that does not lead to validated learning is waste”
==> An MVP should only contain features that are of utter importance
Types of MVP
– Video MVP (ex: Dropbox)
– Concierge MVP, Focusing on a single, or a few customers and develop the product based on these customers
– Wizard of Oz MVP, Pretend that you have a fancy tech. solution when in fact it’s humans feeding the solution
When concept has been validated and we are sure of the demand, we can move to Growth.
Growth Engines:
– Sticky engine (never let go of a customer)
– Acquisition rate
– Churn rate
– Viral engine
– Viral coefficient (how many customers are recruited by customers). If every customer can attract 1.1 customer, then the product spreads like a virus.
– Paid Engine (relies on advertising)
– Cost Per Acquisition (CPA)
– Life Time Value (LTV)
Know when to Pivot Or Persevere
