Lean Business Planning

Lean Planning for Startups

The long established idea in traditional business thinking is that every founder must create a business plan. [A business plan describes the size of an opportunity, the problem to be solved, and the solution that the new venture will provide]. The idea of doing this is that any barriers and obstacles can be foreseen.

Eric Ries developed the ‘lean model’ in 2011. Lean Startup provides a scientific approach to creating and managing startups. Lean planning makes the process of starting a company less risky as it favours experimentation to elaborate planning and focusses on getting a desired product to the customer faster. Lean planning recognises that that the startups that ultimately succeed go quickly from failure to failure while adapting, iterating, and improving their initial ideas as they continually learn.

The alternative to convention; Lean Planning as described by Ries.

The three principles of lean planning

Rather than engaging in months of planning and research accept that all you have on day one is a series of untested hypotheses and complete the canvas
Lean start-ups use a “get out of the building” approach - revising assumptions before redesigning with minor adaptations (iterations) or more substantive ones (pivots) before testing  again
Lean start-ups practice something called agile development working hand-in-hand with customer to develop a minimum viable product

For more information see

Eric Ries: The Lean Startup (2011) Portfolio Penguin ISBN: 978-0-670-92160-7

 

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