We will now talk about lean entrepreneurship. As we have said before, the methodologies to manage a company that already knows its business model are different from the ones we have found now, which are better when do an entrepreneurship or a startup. And a methodology which has dominated the thinking of entrepreneurs, and which has been used by successful entrepreneurs has been this Lean Entrepreneurship, or Lean startup. 7 00:00:38,940 --> 00:00:46,510 Lean startup is a methodology based on many concepts that we used in the eighties with lean manufacturing, and there was a figure, the author of a book which by the way is included in the recommended texts for this course, and which is precisely Lean Entrepreneurship, written by Eric Ries, who takes us from how to use this methodology to adapt it to a startup, and not to 13 00:01:12,780 --> 00:01:19,410 a company, and it’s based on trial and error, we will have to understand the concept of iteration and pivoting, which is going along with the market, learning from it, correcting what I believed in, going back, and in a very lean way, being able to learn along the way, and modifying the initial ideas or initial hypotheses with which I believed my business was going to be successful. Lean startup or lean entrepreneurship can be conceptualized with about three 19 00:01:48,420 --> 00:01:53,729 methodologies within lean entrepreneurship: one it is a methodology provided by Steve Blank, and which is the customer’s development, and the discovery of the client where he tells us that we first have to discover a client and validate him, this is where the search process of the entrepreneur comes in, of experimentation of the entrepreneur to then build a company, which is the execution, already having a company, selling, selling, and selling, to be on the way to having a company. Also, part of lean entrepreneurship, is doing agile engineering. Agile engineering is having a product, but not having the final product in order to sell it, but learning how to make a minimum viable product and with this minimum viable product take it to the market and ask for feedback, and go back again to make changes, and thus, a come-and-go process, a pivoting, an iteration, in order to 31 00:02:46,870 --> 00:02:53,380 really know with greater accuracy what a customer is looking for in a product. And finally, the tool that also groups everything of this pair of methodologies is the Business Model Canvas, which we talked about in Osterwalder’s previous section. When we use lean entrepreneurship we first want to make a validation, find that a problem fits with a solution. We call that the problem solution fit 37 00:03:21,340 --> 00:03:27,129 the fit of the problem-solution, and there is a problem that people have, that your customer faces, that is relevant, and that a lot of people care about, and which is the first step before thinking of technologies, before thinking about a physical product or service, let’s fall in love first with the problem, and in order to do that, we have to go out, leave the building and talk to many whom I consider to be my clients, and who I believe have that 43 00:03:51,310 --> 00:03:56,590 problem or that need, and I have the answer to solve that problem, and here is where get into innovation topics, and if it is an innovation, something that can improve the way in which the problem is currently being solved, and that is the first stage within the phase of lean entrepreneurship being able to validate whether there is a problema and if I have the solution to solve that problema. Once that has been validated we move on to whether the product fits with the market, now I move forward, but first I validate the problem, secondly I venture to create a product or service to be able to introduce it to the client and learn from him, and I call this Product market fit, the fit of the product-market I can create a product or a service that really solves the problema, and which brings in a value proposition to that segment of the client 55 00:04:53,110 --> 00:04:57,340 and I have to do it, and I do so with the concept of minimum viable product. I create something that is an easy way or shortcut to learn something cheaper and faster about what a client wants, so with this methodology, the fit product-market, including the minimum viable product which is nothing else but a simple product that includes some kind of value proposal, and that I present to the client as a starting point that can be improved 61 00:05:27,120 --> 00:05:31,060 and actually find the product or service he wants, this is the second part of the methodology. Later on, once I have the product and that the clients tell me “well, where is it, I want to buy it”, that’s when I can start doing the last validation of the Business Model, if there is a fit Business Model. In other words, I can make money and I can have a sustainable business in time, and we call this part 67 00:05:56,800 --> 00:06:03,669 the Fit of business model, the Business Model Fit. And, how do we do all these? We don’t do that with Google searches, we don’t do it with internet searches, it is done outside the building, I have to go out in each stage leave the building and talk to people, to customers segments, to humans, to human beings, to validate my problem, to validare whether I have the solution, to validate when I create a minimum viable product if 73 00:06:27,460 --> 00:06:33,580 it has the characteristics that a customer is requesting, to validate whether there is a market, and finally to validate if I will make money with this with this business idea. Then we have these three stages, remember: the fit of product-market, the fit of problem-solution, and the fit of business model, how do I do this? Going out of the building, making interviews, and it’s also necessary to have a structure to make those interviews: plan the interview, 79 00:06:57,250 --> 00:07:01,990 land the interview, make the interview, and once you have data, return to the building, interpret them, and start modifying the initial hypotheses you had, where the lines written on the canvas of your business model, on your Business Model Canvas. Then, this is a summary of the way we live the lean entrepreneurship, and what we have discovered is that with this methodology we decrease the probability of failure.
