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Scaling Lean

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Scaling Lean

Mastering the Key Metrics for Startup Growth

Portfolio,

15 min read
10 take-aways
Text available

What's inside?

Business modeling expert offers a detailed process for scaling a start-up from idea to growing concern.


Editorial Rating

8

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Recommendation

Business modeling expert Ash Maurya offers an illustrated, diagrammed guide to taking your start-up from idea to growing concern. Building on his highly acclaimed 2012 book, Running Lean, Maurya describes the stages involved in testing your ideas and building a scalable “customer factory.” Maurya’s process will help you decide where to invest time and money, based on taking an analytical approach to estimating the potential of your business model. You’ll learn how to gauge your progress objectively, set goals and “sprint” toward success, drawing from mini case studies, examples from Maurya’s start-ups and short exercises that you can apply to your ideas. getAbstract recommends his guidance on implementing Lean Methodology to all entrepreneurs, business owners and executives.

Summary

Experiment

As you build your company, learn all you can and make decisions on a foundation of fast, small experiments. Remember you’re in business, not in a lab. Your experiments should test measurable business results that matter to you and your stakeholders.

“Define Your Progress”

Focus on one metric – “traction” – to gauge your progress. This will help you assess your business model and determine meaningful milestones you can use to track your momentum. Know and understand your “Unique Value Proposition.” Know why people will pay for your service or product. Define how it is sufficiently different and superior to compel them to buy.

Base your traction metric on something customers do within your “customer factory.” People enter your factory as visitors and, ideally, transform into “happy customers.” What happens during that process is called “throughput.” More throughput means more happy customers, and more sales and revenue. The higher your throughput, the better your traction is. That’s why traction is your single most important measure of progress.

For most businesses, only “paying customers” count as throughput. For businesses, such as Facebook...

About the Author

Lean business model pioneer, mentor and teacher Ash Maurya starts and sells businesses using the Lean Methodology.


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    R. T. 3 years ago
    This is summary is almost as good as the one about Running Lean in this service (which is another book by the same author).

    And although it seems obvious now, I've never thought about going to such lengths to validate the "throughput" that you hope to achieve in your business model before you actually do anything concrete.

    So a very useful summary.

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