Steve Blank wrote an very interesting article in the May 2014 Harvard Business Review on “Why the Lean Start-Up Changes Everything.” . The lean approach help new ventures launch products that customers actually want. “Lean start-up practices aren’t just for young tech ventures. Large companies, such as GE and Intuit, have begun to implement them.
« Launching a new enterprise has always been a hit-or-miss proposition and the odds are not with you. But recently ‘Lean Start-up” make the process of starting a company less risky. The lean start-up movement is not only a buzzword. “New ventures of all kinds are attempting to improve their chances of success by following its principles of failing fast and continually learning. And despite the methodology’s name, in the long term some of its biggest payoffs may be gained by the large companies that embrace it” said Steve Blanks this article.
In the old methodologies; the first thing every founder must do is create a business plan. “A business plan is essentially a research exercise written in isolation at a desk before an entrepreneur has even begun to build a product. The assumption is that it’s possible to figure out most of the unknowns of a business in advance, before you raise money and actually execute the idea”.
Steve Blanks figures out 3 things about business plan:
Business plans rarely survive first contact with customers.
These plans are generally fiction.
Start-ups are not smaller versions of large companies. (Existing companies execute a business model, start-ups look for one. It shapes the lean definition of a start-up: a temporary organization designed to search for a repeatable and scalable business model)