There is this a generally known term in the startup scene, that 90% of all startups fail.
One of the more common reasons behind the failure is that most of these companies are addressing the wrong market with the wrong product. Let me elaborate on that. Some founders often possess a high level of confidence in the solution they’re building and they stop listening to their customers and focus on building the solution instead.
You may ask, why is that a problem?
The nature of the startup world forces entrepreneurs to make assumptions on target markets, potential customers, possible solutions, unique value propositions and more. The problem begins when those assumptions are not challenged or proofed. This can lead to wasting precious time and funds on building a solution that has no requirement in the market.
The Lean Startup methodology founded in 2012 by Eric Ries addresses this issue by putting in place short iteration cycles where entrepreneurs gather feedback during each cycle. The methodology focuses on listening to potential and existing customers and other stakeholders, gathering valuable feedback to validate different assumptions and improving the business model.
To prevent startup companies from investing all available money and time in a business model that is based on wrong assumptions, the lean startup methodology encourages entrepreneurs to go out and test them.
How is the business model represented in the Lean Startup methodology?
Instead of spending time on writing long business plans, the Lean Startup methodology offers a very convenient alternative: The Lean Canvas.
With the help of a basic Lean Canvas startups can create the business model on one condensed page. The idea behind it is that the first version of the business model is mainly based on assumptions. Therefore you shouldn’t invest too much time in it.
In our monthly Lean Startup meetup in Berne we are building a meaningful community that generates value to the local entrepreneurship system in order to foster innovation for the region. In different formats that reaches from expert talks to workshops (where you are active), you will learn from others how they applied lean startup. This will help you to understand the true value of lean startup and in our workshops you learn how to apply it yourself!
The best is – this all is for free! Get in touch with like-minded people, network and learn something new!
More about the Lean Startup Meetup: https://www.meetup.com/de-DE/Lean-Startup-Bern/