This presentation by Eric Ries, in Toronto, to promote his book ‘Lean Startup’ gives an enlightening understanding of what motivated him to write the book and the reasons why he believes we are on the threshold of a new movement that maps the way entrepreneurs and innovators can build a viable business. He explains that the new business environment is both fast paced, fractured and multi-faceted with information being produced and absorbed in small digestible parts from many sources. The chances of success in this unpredictable and dynamic new world are slim so a much more experimental process of establishing customer product fit is required.
In his view there are three stages to the startup venture and likens development of the venture to a popular Movie…………………
Act 1 – Plucky protagonist, in the right time and place, has a brilliant idea, inspires their co-workers with their ability to see the future.
Act 2 – Photo montage – Working hard playing hard, having fun, teamwork, achieves great success
Act 3 – How rich you are going to get, dividing the spoils, who sues who.
This is all tongue in cheek and glosses over all the effort and heartbreak he went through with IMVU but it does introduce us to the idea of different stages of development.
Why is Stage Development Important?
Here are some reasons that impact start up development
The path from uncertainty to certainty. Where are you
When will customer product fit be achieved. (How do you know?)
Start realistic projections
What’s the proposition worth
How can you be sure that you have achieved enough to engage investors in your venture. What are they looking for to entice them to part with their capital?
Qualitative and Quantitative assessment for the work you have carried out, what you have learned how you intend to apply it and what does the future landscape look like.