Title: Define lean startup.
Course: Entrepreneurship (12053-I) > Section: Understanding Design Thinking and Business Model Development

Definition should include the following from Investopedia:

The lean startup is a method used to establish a new venture or when an existing venture introduces a new product or service. The lean startup method advocates developing products or services that consumers have already demonstrated they desire so that a market will already exist as soon as the product or service is launched rather than developing a product or service and then hoping that demand will emerge.

- Through lean startup, if an idea is likely to fail, it will fail quickly and cheaply instead of slowly and expensively.
- The lean startup method considers experimentation to be more valuable than detailed planning.
- Entrepreneurs test their hypotheses by engaging with potential customers, purchasers, and partners to gauge their reactions about product features, pricing, distribution, and customer acquisition.

Process/Skill Questions

- What are the advantages of following the lean startup methodology?
- What is the build-measure-learn feedback loop, and why is it important to a startup?
- Why do successful businesses use the lean startup methodology?
- How is the lean startup method different from other approaches to managing a new venture?