Agile business
In product development, for example, Mr. Ries is an enthusiast of so-called agile programming methods, which emphasize rapid development, small teams and constant improvement. But, he adds: "The agile practices have to be adapted, shifting the focus somewhat from generating stuff to learning about what customers will want. Most technology start-ups fail not because the technology doesn't work, but because they are making something that there is not a real market for."
So the lean playbook advises quick development of a "minimum viable product," designed with the smallest set of features that will please some group of customers. Then, the start-up should continually experiment by tweaking its offering, seeing how the market responds and changing the product accordingly. Facebook, the giant social network, grew that way, starting with simple messaging services and then adding other features.
The goal, explains Mr. Blank, is to accelerate the pace of learning. "A start-up is a temporary organization designed to discover a profitable, scalable business model," he says.
Many young Internet businesses have embraced the lean start-up principles of beginning small and getting products into the marketplace quickly in pursuit of paying customers. Several gathered last week at a conference in San Francisco, including representatives from Grockit, an online education network; KISSmetrics, a Web site measurement business; and Dropbox, an online file storage and sharing service. Others represented PBworks (Web collaboration tools), Flowtown (software for social media marketing) and Aardvark (a social network search service, recently acquired by Google).
USINESS
The Rise of the Fleet-Footed Start-Up
By STEVE LOHR
Published: April 23, 2010
The costs of starting an Internet company have fallen sharply. The "lean start-up" formula adds management practices tailored to exploit the Web environment.