Lean Startup Eric Ries 5Rules for Successful Startup Founders and Entrepreneurs in 2019
Let’sbe real for a moment, every startup and entrepreneur can do with as much advicefor getting started as possible. As the same time, the most successful entrepreneursare also a mountain of infomration and advice for existing startups orentrepreneurs who might want to hone their process.
Withthis in mind, Eric Ries is one of the most highly respects fountains ofknowledge and someone who is always eager to pass on this important advice tostartups.
In case you need reminding, Ries is the author of “The Lean Startup” which is a New York bestseller that sold more than one million copies. He is also the founder of the “Lean Startup Methodology” which has inspired many entrepreneurs to create successful businesses.
Hereare five rules for successful startup founders and Entrepreneurs according toRies:
1. Identify Informationthat Can Solve Tasks or Problems
EricRies is a firm believer than in order for startups to innovate, the must bewilling to learn all the way through the process. Now, that’s not to sayentrepreneurs need to take in every last word or detail along the way butrather they should use a process called validated learning.
How It’s Done –Entrepreneurs and startups need to focus on learning the right information. Assuch, this should involve picking out tasks or problems and finding informationthat can be used to solve them. For this reason, they should now haveactionable information that will benefit the process.
Takeaway – Find anddeploy information that can solve problems or tasks.
2. Create a Minimum ViableProduct Before Promotion
Riesis known for his very specific approach to minimum viable product. In fact, hesays that before marketing or promoting a product, this product absolutelyneeds to be tested in the market. For clarity, MVP refers to the absolutely earliestform of something that can still be condsidered “complete”.
Asyou may have gathered, Eric has a very simple reason for using MVP and advisesstartups that this will allow them to avoid procrastinating or trying toperfect a product or service. In fact, in the book “The Lean Startup”, Riesexplains that trying to perfect a product or service before marketing or anyother aspect is likely to result in the startup running out of funds.
How It’s Done – Simply put,Ries says that every entrepreneur or startup should focus on becoming their owntestnet. In other words, the guru advises that startups should set specificmilestones and celebrate anytime the product/service passes tests related tothese milestones.
Takeaway – Create aminimum viable product and put it into the market ASAP.
3. Have a Specific Processfor Getting Things Done
Productivityis a key element for any startup or entrepreneur and this is certainly true forstartups and entrepreneurs who simply cannot afford to waste any time. When youconsider Ries’s past experiences with venture capital firms, startups and megacompanies like General Electric, we can know that the serial entrepreneur si amaster when it comes to getting things done.
Erichas a somewhat different approach to productivity and says that entrepreneursshould try to focus on what they should be getting done and not what otherbusinesses are doing. That is to say, he recommends that startups Wookieesmarter instead of harder and realise their own unique strategy forproductivity.
How It’s Done – Ries has anexcellent strategy for productivity that involves combining the minimum viableproduct process with the validated learning mentioned above. He goes on to saythat this combination will enable startups to get things done and learn alongthe way.
Takeaway – Combine MVPwith validated learning to get things done.
4. Choose the RightMetrics and Think Long Term
Insteadof focusing on every metric under the sun, Ries is adamant that startups shouldalways look at the macro. With many startups, Eric says that this misguidedfocus is the biggest time waster.
Forexample, he likes to point out that “clicks” are nowhere near as effective orbeneficial as “sign ups”. In this sense, spending a fortune on advertising ormarketing strategies is pointless if they offer no real return on theinvestment.
How It’s Done – Interestingly,Ries says that the best way to set metrics of any kind is to tie them topeople. With this in mind, the startup can identify the best target market andknow precisely where to go when these metrics need further examination.
Takeaway – Tie metricsto people so that the business can better target their efforts.
5. Focus on Building a CarInstead of a Rocketship
Aswith any entrepreneur, there was a time when Eric Ries took baby steps to bringhis big ideas into fruition. For this reason, Ries is always quick to say thatstartups should be more realistic with their goals and objectives.
Ina recent interview, Ries explained this by saying that most entrepreneurs tryto “build a rocket ship instead of a car” and this over elaborate plan is mostoften doomed to failure. What’s more, Eric says that these companies haveintricate plans that go into far too much detail and these details can end upbeing major problems when things don’t go to plan.
How It’s Done – Ries saysthat instead of these complicated plans, startups and entrepreneurs shouldcreate a feedback loop called “Build-Measure-Learn”. As you might expect, thismeans that the company will build something, measure its’ success and adjustaccordingly.
Takeaway – Simplify theprocess and try not to digress too much on the detail.
Eric Ries is obviously anUber successful business man at this stage but it’s important to understandthat the above steps are taken by all entrepreneurs and startups. More specially,it’s important to remember that Ries is an entrepreneur-in-resident at theprestigious Harvard Business School and the above advice and rules for successshould not only be taken on board but also delployed at every opportunity.