It’s estimated that anywhere between 75% and 90% of all startups fail. There are many reasons behind failures, but in our experience, most startups fail because they fail to attract enough users. It appears that building a product is not a problem – the problem is getting people to use it.
Many failures could have been prevented, should the founders have followed the methodology described by Eris Ries in his famous book The Lean Startup
This book is a must-read for aspiring startup founders. It’s packed with real-life stories and provides answers for many questions first-time entrepreneurs might have.
Key takeaways from The Lean Startup
Startups are developed under conditions of extreme uncertainty.
Business plans are useless because there is no reliable data to base them on. The only data you can rely on is what you learn while building a startup. Don’t rely on words; get insights observing and measuring how people use your product or service.
The goal of a startup is to figure out the right thing to build. Start with a Minimum Viable Product and see if anyone is willing to buy it. Going all-in without paying close attention to what users want is never a good strategy.
Grow as you learn.
Set yourself up on a learning curve. Build a new feature -> measure how customers use it -> learn from it. Then use this knowledge to develop the project further, one step at a time.
As it was famously summed up by Lyndon Johnson: “Doing what’s right isn’t the problem; It is knowing what’s right.” Applying Lean Startup methodology can help you with figuring out what’s right faster and with fewer expenses. Visit http://theleanstartup.com/ to learn more and buy The Lean Startup by Eric Ries.