Startup, MVP concept, Pivot

The aim is to become a “micro-multinational”, a firm that is global without being large. Many of them are simply small businesses that use digital technology. A growing number are “social enterprises”—firms with a social mission.

Perhaps the biggest change is that computing power and digital storage are now delivered online

Now the business usually begins with a “team”—often two people with complementary skills who probably know each other well.

These “founders” (a term now used in preference to “entrepreneurs”) often work through several ideas before hitting on the right one.

Today nearly all of the ingredients needed to produce a new website or smartphone app are available as open-source software or cheap pay-as-you-go services. A quick prototype can be put together in a matter of days,

At Amazon Web Services, the biggest “cloud” provider, the basic package is free and includes 750 hours of server time. And if a new website or smartphone app proves hugely successful, new virtual servers can be added almost instantly for a small fee.

the same conclusion: that the old model of launching a startup or a new product, encapsulated by the phrase “build it and they will come”, no longer works. Instead, firms have to find out what customers want. That involves building something, measuring how users react, learning from the results, then starting all over again until they reach what is known as “product-market fit”.

Even more than Mr Blank, Mr Ries has given startups a vocabulary to describe what they do. They should start with a “minimum viable product”, or MVP, a sort of trial balloon to gauge the audience’s interest. They should always test their assumptions, aiming for “validated learning”. And if their strategy does not work, they should “pivot”

Startups also often use a related method called “objectives and key results” .



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