There is a lot to do and to examine when you want to start your own business. Many people often make the mistake of constantly trying to perfect their product without showing it to the potential customer. The lean start-up methodology suggests otherwise and presents another, more scientific approach to new product development.
Starting your own company is taking a big risk. You never fully know how it is going to turn out, and you might end up losing money and time. However, some tools and theories can help you be more prepared for the different outcomes and save you time in the long run. In this article, we go in-depth with the lean start-up methodology that provides a theoretical approach to creating and managing start-ups.
The theory behind the lean start-up is based on a “build, measure, learn"-principle. This is a way to create a product or service without wasting too much money or time. After you have found a good business idea and done a good amount of research on your target group, you are ready to begin the process.
It all starts with building - where and how are you going to build the said product or service? This should not be a finished product, just a simple prototype that shows the people you test on, what kind of features there are. It is called an MVP, a minimal viable product.
When the prototype is ready, it is time to measure it. This means to test it on people from your target group that are interested in products within your industry and like to be the first to test out a new product. They are also called ‘the early adopters.
Spend some time identifying your startup’s early adapter’s and learn from their feedback. The feedback should be used in your further work developing your product. This could be adding or removing features and fixing the design. It is a linear process so after the last step, learn, you can go back to measure and work your way through until the product is perfect.
Let’s say you want to start an entertainment website. Nowadays we’re always equipped with our phones, constantly being online while entertaining ourselves with anything from a streaming service, a blog, or games like Candy Crush or Farm Ville. Online games are very popular and classic casino games like online poker, rummy, and blackjack, where you have the opportunity to play for money, hits on a global level. So, if you want to enter this market, you must get well acquainted with the industry and the group of people you’re targeting.
Before working with the lean start-up methodology, it is important to learn and analyze your competitors. Ask yourself the questions: Who is primarily gambling online? Where is it even possible to gamble? Which sites have the best deals? And what do you have to offer that the existing ones do not have? You need to learn more about the most recent casinos, their promotions, the most popular jackpot games, and other industry-related news. Try to look at other online games or casinos, read the reviews, and figure out what they do well and where you can be better.
It's essential to make a competitor analysis so you know how to differentiate yourself from others. That might be the condition, the variation in online games, payment methods, or design. When you have a sufficient amount of information about your target audience and the industry, you can start working with the lean start-up methods and the development of your product and/or service.
While it is important to believe and fight for your business idea and vision, trying to perfect your product and incorporating your target group's wants and needs, you also need to know when to pivot. This will save you time and money and it's an important part of your process. Pivoting doesn’t mean cancelling the project completely; it can also be by ending a product line or focusing on another target group that fits your business plan and idea.