I end the recent chapter Innovatewith “Cultivating the management portfolio in an established company” and “Entrepreneur is a job title” followed by an epilogueand Eric Ries’ final conclusion.
Cultivating the management portfolio in an established company
There are four major kinds of work that companies must manage. As an internal startup grows, the entrepreneurs who created the original concept must tackle the challenge of scale. As new mainstream customers are acquired and new markets are conquered, the product becomes part of the public dace of the company, with important implications for PR, marketing, sales and business development. In most cases, the product will attract competitors: copycats, fast followers, and imitators.
The last two chapters – before we end this session with the epilogue and a conclusion tomorrow – are Adapt and Innovate. Eric Ries discussed Innovate in great detail and talks also about the obstacles we can be confronted with in larger companies when we want to change existing structures. It´s pretty interesting as well but just too much for this article. So I´ve set a focus and give an overview about his chapter after talking about Adaptand building an adaptive organization.
After talking about Pivot or Persevere regarding to Eric Ries´ book “The Lean Startup” today´s topics are Batch and Grow
By the way: At the end of this week I´ll probably be done with the studies of the book. There are 3 chapters to go after Batch and Grow: Adapt, Innovate and a conclusion/epilogue.
Small batches in entrepreneurship
When Eric Ries teaches entrepreneurs this method of small batches, he oftenbegins with stories about lean manufacturing (e.g. Toyota). Before long, he can see the questioning looks: what does this have to do with a startup? The theory that is the foundation of Toyota´s success can be used to dramatically improve the speed at which startups find validated learning.
Today´s topic is Pivot or Persevere regarding to Eric Ries´ book “The Lean Startup”
It´s probably one of the biggest challenges for startups. This is a really short summary of Eric Ries´ chapter. He is using detailed examples which would go beyond the scope of this article. So this is gonna be short and with little jumps but still enough to get in touch with the whole thing.
Every entrepreneur eventually faces an overriding challenge in developing a successful product: deciding when to pivot and when to persevere.
Part 5 of my summary of Eric Ries´ book “The Lean StartUp“. For part 1 – 4 take a look at the end of the article. Today´s chapter is Measure
A startup´s job is to (1) rigorously measure where it is right now, confronting the hard truths that assessment reveals, and then (2) devise experiments to learn how to move the real numbers closer to the ideal reflected in the business plan.
Accounting is something that has become taken for granted but unfortunately standard accounting is not helpful in evaluating entrepreneurs. Startups are too unpredictable for forecasts and milestones to be accurate.
Eric Ries opens his chapter with a descriptive example. He is talking about Groupon and its success as one of the fastest-growing companies of all time.
They didn´t start out successful at all. To make it short (for further details take a look in his book): At first Andrew Mason intended his company to become a “collective activism platform” called The Point. Bringing people together to solve problems they couldn´t solve on their own. After his first activities were disappointing he had to change and keep the new product simple – a minimum viable product.
Here his story told by himself:
“We took a WordPress Blog and we skinned it to say Groupon and then every day we would do a new post. It was totally ghetto. We would sell T-shirts on the first version of Groupon. We´d say in the write-up, “This T-shirt will come in the color red, size large. If you want a different color or size, email that to us”. We didn´t have a form to add that stuff. It was just so cobbled together. Continue reading →
I´ll spend the next week for posting summaries of the important chapters day by day, so that we will have a great overview of the book in the end. All the chapters in this book are explained by a lot of real examples – so it´s definitely a benefit to buy and study this book.
After we started with the roots and the principles of a lean startup – Today´s chapters: