startup company data

What’s up !!! This is THE stephane ANDRE. I watch an Olivier Roland’s video  and I learned some good stuff.

To create a company, most people advise to leave school or job to be 100% focused on creating the company. I advise you to start your business part-time and continue your school or job. An excellent method for this is « Lean Startup » . The principle of Lean Startup is to put on the market as fast as possible your product/service at minimum viable.

2 different methods

method scientific

Classic

Let’s take a closer look at what most people do. A person has an idea to start a company, so this person does a market research to minimize the risks. Then this person will seek financing with bank loans after calculating the needs of the business. These business needs based on a 3-years business plan that is extremely theoretical and hypothetical. You should know that in 99% of cases, as soon as the company is open and prospects are in contact with the products/services, these business plans have no connection with the reality of the field.

The problem with this method is that this person works for 1 year to create a product/service and when it’s available, this person realize that everyone doesn’t care. When the product/service isn’t selling, the stress rises enormously and you have to find a way to pay back people who lend money to your company.

Lean startup

With the Lean Startup’s method, when a person has a product/service idea, the principle is to find the minimum basic function of that which would interest the audience and the prospects who would be willing to buy. Then you have to do a test as soon as possible on the market. There is something very important that Michael Masterson said : « Before your business make its first sale, it’s nothing more than a set of unproven ideas that you are spending money on ».

That is why it’s necessary to set up a field test in the most real conditions possible with the most minimal version of your product/service.

Here is an example with someone who wants to buy a parking lot to rent it :

  • With the classic method, this person bought a random parking lot hoping to have many prospects interested in renting it.

  • With the Lean Startup method, this person will find an interesting parking lot to buy. Then this person will post an ad in an ads posting site and on social media and will wait to see if there are peope interested in renting it. If people call this person to say : « I’m interested in having your parking lot, I’d like to rent it », in this case this person will buy the parking lot. If nobody is interested in the parking lot, this person will not buy it.

Test quicky

test field

There are several other methods like this to test. In my case, it’s my blog to build my brand and until today, I’m doing it part-time. Here is a 3-part article in the power of a blog ( here  ).

Create my blog allowed me to :

  1. To know if I could find and keep my rhythm to write articles

  2. To know if I could share interesting things to create an audience

  3. To know if I could possibly monitize this blog with this audience

Once you have the idea, you need to test it as soon as possible to see what is happening on the field to collect feedback from the first customers and to know if you have an interesting business model or not. This test is excellent for eliminating a lot of uncertainty.

The cool thing about the Lean Startup method is that you’ll really start investing a lot of time, money and energy when you have your first customers who will help you improve your product/service.

Let things be clear, Lean Startup isn’t a magic formula, it’s necessary to act and start the process again, until you have a product/service that interest people.

Subscribe to my newsletter and share this article if you think it can help someone you know.

-Steph

Please follow, like and share:
Start A Smart Company
Tagged on:                                                                                                                                                                                                                                                                                     

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.