- Milly Barker
- Apr 17
- 6 min read
Updated: 2 days ago
Welcome to a new series of articles that I'm calling "Strategy Spotlight" because I love alliteration. Also Strategy. I love that most of all.
Strategy Spotlight is a fortnightly series that's going to help to demystify popular business strategy methodologies for early-stage founders and operators like you so you can decide which one works best for you and your business.
There are so many different ways to think about planning and achieving your goals for your business (including my own methodology) and it's overwhelming enough to think about getting all that done without first also having to think about which framework you're using before you can even start.
Thankfully, I've got your back.
Over the next ten weeks, we'll unpack together the essentials of five powerful frameworks for company design:
Lean Startup (this article)
Porter's Five Forces
Agile, and
Six Sigma.
In each instalment, I'll dive deep into the origins of these methodologies, outline five key strengths and weaknesses for their application in a startup environment, and offer my perspective on their suitability for businesses of different sizes. Most importantly, I'll provide ten practical questions you can ask yourself to determine if a particular approach is the right fit for your unique company.
The goal is to cut through the jargon and provide you with actionable insights, so that you can make informed strategic decisions, reduce overwhelm, and build a stronger, more resilient business. Let's dive in.
What is the Lean Startup Methodology?
Picture this: it's the early 2000s and the dot-com bubble has burst. The classic, 'build it perfectly in secret then unleash it on the world' approach to company design is looking more than a little tired. Enter Eric Ries, a serial entrepreneur who's seen firsthand the colossal waste of time and resources that can occur if you go too far down a particular path before testing your solution on your customers.
Drawing inspiration from lean manufacturing principles (like Toyota's hyper-efficient production system), Ries formalised his ideas in his book, The Lean Startup, published in 2011.
The core idea? Validated Learning.
Instead of making huge leaps of faith based on assumptions, the Lean Startup encourages you to build a Minimum Viable Product (MVP - the most basic version of your offering that still delivers value to your customers), get it in front of real customers fast, and then learn everything you can from their feedback.
This 'build, measure, learn' feedback loop is the beating heart of the methodology, allowing you to iterate and pivot your way towards product-market fit with minimal wasted effort. It's all about being agile (more on that in another article), adaptable, and customer-obsessed from day one.
Why is the Lean Startup Methodology GOOD for startups?
It reduces waste
By focusing on building only what's necessary to learn and grow, you avoid sinking precious time and capital into features nobody wants. For cash-strapped early-stage ventures, this is make or break.
It gets you to market FAST
The emphasis on MVPs means you can get your product (or a version of it) into the hands of potential customers much quicker, allowing you to gather crucial feedback early in the game.
It keeps you customer-obsessed from the get-go
The entire methodology is built around understanding and responding to customer needs. This drastically increases your chances of building something people actually want and are willing to pay for.
It's flexible
The 'pivot' concept enables you to change direction based on validated learning without feeling like a failure. This adaptability is essential in the startup world.
It's data-driven
The 'measure' aspect forces you to track key metrics and make informed decisions based on real data, not just hunches or wishful thinking.
Why is the Lean Startup Methodology BAD for startups?
It pus you at risk of a feature-poor initial product
The focus on 'minimum' can sometimes lead to an MVP that doesn't quite deliver enough value to attract or retain early adopters if not executed carefully.
It can tempt you into pivoting too quickly (Shiny Object Syndrome)
The emphasis on pivoting can lead to a lack of focus and a tendency to jump from one idea to another without giving anything enough time to gain traction.
It can struggle in truly innovative, totally uncharted territory
When there are no existing customers to learn from, applying the Lean Startup's reliance on feedback can be challenging for truly novel ideas.
It requires disciplined execution
The 'build, measure, learn' loop isn't magic; it requires rigorous tracking, analysis, and a willingness to act on the (often uncomfortable) truths revealed by the data.
It can cause you to overlook long-term vision
The intense focus on immediate customer feedback and iteration might sometimes overshadow the importance of a strong, overarching, long-term vision.
Who is the Lean Startup Methodology BEST for?
When you consider all the above, it's hard not to see how, used properly, The Lean Startup Methodology can be a game-changer for early-stage businesses.
Its emphasis on resource efficiency, speed to market, customer validation, and adaptability aligns so well with the challenges and opportunities that startups face. While larger, more established companies can adopt Lean principles for new product development or innovation initiatives, its core strengths are most impactful when you're starting from zero (or close to it) and need to find your footing in the market.
It's your best friend when you're trying to answer that fundamental question: "Are we building the right thing for our customers?"
How can I decide if the Lean Startup Methodology is right for ME?
Ok, now you're clear on what The Lean Startup Methodology is from a general perspective, let's figure out if it's right for you and your specific circumstances.
Here are ten questions to ask yourself to figure out if the Lean Startup methodology is the right methodology for you:
Are we swimming in a sea of uncertainty about our ideal customer and what they truly need? If you're not 100% sure who your people are and what problems they're desperate to solve, Lean Startup's validation focus could be a lifesaver.
Can we stomach the idea of launching a basic version of our product or service sooner rather than later, even if it's not perfect? If you're a perfectionist (hi, it's me) who needs every pixel aligned before showing it to anyone (again, it's me), Lean Startup's emphasis on speed might be a tough pill to swallow.
Are we genuinely open to changing our product, our target audience, or even our entire business model based on what our early customers tell us (even if it contradicts our initial vision)? If your initial idea is sacred and unchangeable, the 'pivot' aspect of Lean Startup will feel like a betrayal. You need to be comfortable with being uncomfortable.
Do we have the capacity and willingness to actively engage with potential customers, ask them questions, and really listen to their feedback? If you'd rather build in a vacuum, the customer-centric nature of Lean Startup might not be your cup of tea.
Are we comfortable with tracking data and using it to make decisions, even if that data tells us something we don't want to hear? If you prefer to go with your gut feeling, the 'measure' aspect of Lean Startup might feel too analytical.
Do we need to conserve our resources (time, money, team effort) as much as humanly possible in these early days? If you've got unlimited funds and time to burn, the waste-reduction focus of Lean Startup might not be a top priority.
Is speed to market a critical factor in our industry or for our competitive advantage? If being first (or at least fast) matters, Lean Startup's emphasis on rapid iteration can give you a significant edge.
Are we building something genuinely novel where traditional market research might not give us all the answers? Lean Startup's focus on real-world experiments can be particularly valuable when you're charting new territory.
Is our team adaptable and comfortable with a fast-paced environment where priorities can shift based on new learnings? If your team thrives on rigid plans and long development cycles, the flexibility of Lean Startup might feel chaotic.
Are we more interested in building something that solves a real problem for real people than just building something cool that we think is awesome? If customer value is your North Star, Lean Startup's core principles will likely resonate deeply.
Take the time to answer these questions honestly. Your answers will give you a good indication of whether the Lean Startup methodology is the strategic sidekick your early-stage business needs.
If you're struggling to answer any of them, or want any additional help, just give me a shout:
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