Why do businesses fail, and is there something we can do right at the point of startup to minimise this happening? It is a fact that many small businesses fail and that there are a number of different reasons why this happens – under capitalisation, insufficient market penetration, no growth. It is the last item which is the subject of a book by Eric Ries, “The Lean Startup”.
In “The Lean Startup”, Eric Ries argues that the key to creating a successful business is growth, and that the engine of that growth is innovation. The idea is that by constantly reinventing the concept of your product and pruning the business as close as you dare, you end up with a more robust and sustainable profit machine.
There is a danger that money swamps innovation, and that then allows a business to stagnate and die. With constant reinvention and iteration, there is a better chance that your big idea, your vision can be translated into business success.
At the heart of “The Lean Startup” is the concept that the idea is King. There must be no deviation from this, and there is no need to pollute it with the extraneous noise that surrounds modern business. Only things that directly contribute to the vision and the idea need be considered and worked on. Social Media will only work if there is a specific use for it – if it’s just to ‘keep up with the Joneses’ rather than contribute energy and value to the business, then do not use it.
The Lean Startup is a very interesting read. If we all took notice of the ideas that it proposes, then there would be less failure and more business success in the world. Eric Ries has proposed something that could be the starting point of a radical shakeup in the entrepreneurial world.
Have you enjoyed this review? If you have, click through and buy the book HERE!
