Startups & Business › Validating Ideas
Lean Startup
Building companies by testing assumptions with small experiments instead of big plans.
Also known as: lean startup, lean methodology, Eric Ries
Lean Startup (from Eric Ries’s book) treats a startup as an experiment machine: write down your leap-of-faith assumptions, test them with the smallest thing that yields evidence, measure honestly, and persevere or pivot based on what you learn. Business plans pretend you know; lean methods assume you don’t and price learning cheaply.
plan-driven: 6-month roadmap → build → launch → learn (expensive if wrong)
lean: assumption → smallest test → evidence → next assumption (cheap if wrong)
Its unit is validated learning — knowledge about customers demonstrated by a change in behavior (a signup, a payment, a repeat visit), not by opinions collected. Everything else (code, decks, press) is waste until it produces that.
The classic mistakes:
- Lean theatre. Calling any rushed hacking “lean” while testing nothing and measuring vanity metrics. Lean is disciplined experimentation, not speed for its own sake.
- Testing what is easy instead of what is risky. Optimising button colors while the riskiest assumption — that anyone pays at all — sits untested. Riskiest first, always.
- Pivoting without learning. Changing direction every month from restlessness rather than evidence is flailing, not leaning. A pivot follows a validated conclusion, documented.
- Applying it where execution matters more. Once the model works, the job is scaling and quality — endless experimentation becomes dithering. Lean finds the model; discipline runs it.
Where it fits: pre-fit work — discovery, MVP, early iteration. Pair it with fast iteration speed: the method sets the questions, shipping speed sets how quickly you get answers.