If you are looking for a complete, easy-to-understand, and fast book summary of the Lean Start Up by Eric Reis, then you’ve come to the right place.
Below you will find our full audio/video 5 minute summary of the book which outlines all the key points, must learn lessons, and talking points.
Ad Block
Page Contents
Watch Or Listen To Our Complete 5-Minute Book Summary of the Lean Start Up Below
Eric Reis’s Book Is a Must Any Entrepreneur Looking To Start A New Business…
Prefer Reading, Here Is A Transcript Of Our Lean Start Up Book Summary
Intro
Welcome to our 5-minute detailed summary of “The Lean Startup”, by Eric Ries at the end of this short book summary you will not only understand the big ideas and key takeaways from the book, you’ll be able to discuss and implement them as well. Make sure to subscribe and hit the bell icon if you want to learn from the worlds greatest business and finance books in a fraction of the time moving forward.
Main Body
You must have heard and read many books on startups and entrepreneurship, but The Lean Startup by Eric Ries is a bit different. The book focuses on the scientific approach towards a new startup. According to Ries, a new business is filled with uncertainty, and depends on luck. But Ries suggests there should be a scientific approach that ensures that the startup is not going to fail.
Usually, many startups make it to a year or so, some even touch five, but then they sink, this is because they are not approaching the business right. In The Lean Startup, Eric Ries explains a semi-scientific, real-world approach to building a business by using validation, finding a profitable business model, and creating a growth engine to both entrepreneurs and want to be entrepreneurs.
In a nutshell, the lean startup approach assists new ventures in rapidly and affordably launching products that customers actually want. The lean startup methodology assists new ventures in launching products that customers actually want much faster and cheaper than traditional methods.
Ries believes in learning new techniques in order to achieve your goal. According to Ries the modern world is changing at a pace of sonic speed, and if you want to build a successful startup, you need to learn the latest, top-notch ways to compete in the market. as he says in the book:
“The only way to win is learn faster than anyone else”
Here are the three key takeaways the book focuses on:
1. Find a Business model that works through validation
The book is constantly stressing over a word that is semi-scientific. Which means you need to validate your business. It starts from making a hypothesis before you start a business. For example, Tesla had a hypothesis that people will buy self-driving cars. This is like a scientist making a hypothesis, but after they come up with a hypothesis they call their nerd friends, research and make big theories on the basis of the hypothesis. But this is a semi-scientific approach, all you need to do is set a hypothesis and throw it into the real world and test if people are willing to validate your hypothesis by opening up their wallets and purchasing. The important thing is to get people to pay as soon as possible, because saying “great idea” or “I’d buy that” doesn’t put a penny in your pocket. So, instead of calling friends, researching, and gathering feedback, go out there and find people that should theoretically want your product and ask them to buy.
2. Use split-testing to discern value from waste.
This is the semi-scientific approach that involves making two versions of your product and presenting them to the same people to get a feedback on their preferences, and the product. This allows you to distinguish between features that your customers value and those that they don’t want or need. This is a difficult part but you don’t need to do it physically, you can split test any part of your website using applications and stuff on the internet. so, before you add, drop or change features of your products, learn what the customers want and need. Ultimately, if they don’t need it, don’t build it.
3. Never ever indulge in vanity metrics.
Vanity metrics are like tracking who has more followers on Instagram, your product’s video views, or how much your Facebook ad is getting clicked on. The information obtained from split testing is valuable. The number of Facebook likes you have isn’t. It’s a vanity metric, and you should never use one. Having a lot of page views is great, as is being covered in the press and having a lot of Twitter followers. But none of these things pay the bills.
The only metrics you should use to measure your success are those that tell you whether you’re profitable or not. Here are some examples: Do your customers recommend you? How many paying customers do you have? Is the rate of recommendations increasing or decreasing? Are returning customers purchasing more? Is the cost of your Facebook ads less than the lifetime value of your customers? You should be looking at Key Performance Indicators like this because they can make or break your business these metrics.
The book is highly recommended for entrepreneurs and want-to-be entrepreneurs. It is for a 13-year-old thinking about making an app, a 33-year-old who is trying to quit their 9-5 job, or someone who had failed in the past. this book is a complete approach towards a successful startup. The methods, techniques, and ideas written in the book can change your perspective of a startup. It will change your preferences and focus. The book will be a great addition to your library!
Outro
This is it for today, if you want to learn in depth about the semi scientific approach to a startup, you should buy The Lean Startup by Eric Ries. You can pick it up with affiliate links below. We will be back with more book summaries, and many other money-making tips, until then please like and subscribe to our channel. Do not forget to press the bell icon to stay updated when a new video hits. Let us know in the comments if there is a book you want us to summarize! And until next-time, I hope your financial success surpasses your dreams!
