To find out what could work, they must stay flexible. Start-ups are different, though: they can’t predict their own future because they have no past, don’t know what their customers want, and don’t know which approaches are best for finding customers or creating a sustainable business. This management strategy works in established companies that have been around long enough to know what worked in the past and therefore what could work in the future. Traditional management consists of two components: developing plans and overseeing the people executing them.Ī manager creates a plan, sets milestones, and delegates tasks to her employees, guiding them to ensure they hit their milestones on time. The latter is problematic because it’s not right for startups that are institutions in the making.In the first three blinks, you'll discover what the main goal is that a start-up should pursue.

Up until this point, many startup founders have used either traditional management tools or a “Just Do It” philosophy. A startup needs to be able to adapt quickly and constantly change its strategy or risk failing, as there will always be uncertainty when doing anything for the first time. It’s different from other companies because of the uncertainty involved in creating something new.

Key Takeaway 1: Startups need a specially designed form of management to cater to their very particular needs as fledgling companies.Ī startup is a new company that creates something new. However, it’s important not to sacrifice quality in order to accelerate growth.Įntrepreneurs who work for a company can also use the lean startup method. This is especially true for startups, which need to grow quickly. Growth is sustainable when a business attracts new customers from the actions of previous customers. To do this, they use a small-batch approach: before developing a full product, the company first tests out smaller versions of it with customers. They can’t rely on guesses or assumptions they have to see what’s working and what isn’t. In order to succeed, startups have to be flexible and adaptable. Innovation accounting informs the Build-Measure-Learn feedback loop that helps startups determine when to persevere and when to pivot. Startups can use a feedback loop to steer themselves towards their goals. The more validated learning achieved, the better a startup can perform in its early stages.

Validated learning helps employees learn how to measure their output and success through experience. Startups need a form of management that is different from the usual.

The lean startup ries