The Lean Software Startup, by a successful entrepreneur

Software development and entrepreneurship - the combination is exciting both because of the challenges and its promises it holds. On one hand, it can be challenging to shift attention from unit testing and data structures to market analysis and product development. On the other hand, a product or service created by a savvy developer can reach hundreds of thousands of potential users at the cost of one.

"The Lean Startup" by Eric Ries focused on creating new products and services in the face of extreme uncertainty. Extreme uncertainty is, or should be, the reality of every developer who prefers reality to preconceived ideas about his or her product and its market.

According to Eric, the biggest obstacles to achieving entrepreneurial success often lie with the entrepreneurs themselves; they come from the "shadow beliefs" that influence product development. These are:

    1.    We know what the customers want
    2.    We can accurately predict the future
    3.    "Advancing the plan" is progress

Eric shared an enlightening story about Startup A and Startup B. Startup a had a detailed business plan, hired the most talented workforce, and had ample funding. Startup B kick-started the business by releasing - fast - a buggy and basic version of the product.

Startup A became a failure, and startup B a successful, multi-billion dollar enterprise. The lesson learned here is spending time and resources on what directly create value for a startup. These things must necessarily whatever brings the startup in touch with the reality. Thus, the unit of progress for a lean startup is "Validated Learning About Its Customers".

For this reason a startup would prefer to fail early, as long as the failure results in a reality check and a timely change of direction. A startup that fails early and often can change direction earlier and more often, thus coming closer to a viable business model with each failure. In contrast, a non-lean startup relies on preconceptions and delays the reality check; at the time when it does release its product out to the world changing direction will become costly and morale-defeating.

So Eric's prescription is: start up lean; at all costs, accelerate the rate of customer feedback; only add features you can get instant feedback on; test, track, and tweak continuously; and only raise capital based on your sales facts and data, not speculation.