Lean Startup: Definition & Principles

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  • 0:04 What Is Lean Startup?
  • 1:04 Key Principles
  • 2:48 Lesson Summary
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Lesson Transcript
Instructor: Artem Cheprasov

Artem has a doctor of veterinary medicine degree.

This lesson defines the concept known as lean startup. You'll then learn a bit about many of the key principles behind this innovative entrepreneurial method.

What Is Lean Startup?

It used to be that if you wanted to start a business, you'd need lots of money, lots of people, lots of time, and even lots of secrecy. But things are changing. People have realized that you can start a very successful business without any of that.

This idea is part of lean startup, a method for the effective and relatively minimal use of resources in developing a business or product. Let's break that definition down by comparing resource use and the development of a business or product through the lean startup method.

First, there's the resource of time. Lean startups don't bother with extremely time-consuming detailed business plans. Instead, they focus on things like the way a customer reacts to a product and then go from there. You can only plan for so much, and a lot of plans are going to go to waste anyways.

Second, there's resources to consider such as money and personnel. It takes a lot of money and people to re-invent the wheel. Lean startups focus on refining existing customer demand, which requires a lot less of both.

Key Principles

With that in mind, let's go over some of the key principles involved in lean startups.

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