Lean Startup: key terms, formulas and examples
Lean startup means building the smallest test (an MVP), learning from real customers, then pivoting or persevering in short cycles.
Example
A landing page with a sign-up button tests demand before any code is written.
Takeaway
Validate with customers first and measure what they actually do.
Key terms
- Bootstrapping
- Growing a business from its own earnings, without outside investors.
- Minimum viable product
- The simplest version of a product that lets you test an idea.
- Crowdfunding
- Raising small amounts from many people, usually online.
- Scalability
- Ability to grow sales a lot without costs growing as fast.
- Customer discovery
- Talking to likely customers to test assumptions.
- Iteration
- Repeating a cycle of build, test and improve.
- Validated learning
- Proof gained from real customer behavior.
- Lean startup
- Building and testing in small, quick steps.
Formulas
Customer churn rateL ÷ S × 100
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