The Lean Startup

Eric Ries’ methodology has become the standard playbook for modern startups. While some concepts feel obvious now, that’s because this book made them mainstream.

Build-Measure-Learn Loop

The core cycle:

1. Build - Create a minimum viable product (MVP)
2. Measure - Collect data on how customers respond
3. Learn - Determine whether to pivot or persevere

The goal: minimize time through the loop.

Validated Learning

Instead of building in isolation for months, validate learning as quickly as possible:

• Is this problem worth solving?
• Will customers pay for this solution?
• Can we build a sustainable business?

Minimum Viable Product (MVP)

The MVP is not the smallest product imaginable. It’s the fastest way to get through the Build-Measure-Learn loop with minimum effort.

Examples of MVPs:

• Dropbox: Video demo instead of building the product
• Zappos: Buying shoes from stores and shipping them (no inventory)
• Concierge MVP: Manually doing what will eventually be automated

Innovation Accounting

Traditional accounting doesn’t work for startups. Need new metrics:

• Actionable - Clear cause and effect
• Accessible - Simple and understandable
• Auditable - Data is credible

Avoid vanity metrics (total users, page views) in favor of actionable metrics (engagement, retention, conversion).

Pivot or Persevere

Regular decision points: Is our strategy working? Types of pivots:

• Zoom-in pivot: Single feature becomes the product
• Zoom-out pivot: Product becomes a single feature
• Customer segment pivot: Targeting different customers
• Platform pivot: Changing from app to platform (or vice versa)

The Five Whys

When problems occur, ask “why” five times to get to root cause. Prevents treating symptoms instead of disease.

Continuous Deployment

Small, frequent releases instead of big batch launches. Allows for:

• Faster feedback
• Less risk per deploy
• Easier debugging
• Faster learning

Application to PLG

The Lean Startup maps perfectly to PLG:

• Launch quickly with core value prop
• Measure actual usage, not survey responses
• Iterate based on behavioral data
• Keep activation flow as minimal as possible

The mistake: building too much before talking to users.

Criticisms

Some argue the framework leads to incremental improvements vs. breakthrough innovation. True for some applications, but the core principle of validated learning applies regardless of ambition.

My Rating: ★★★★☆

Foundational text that every PM and growth person should read. Some concepts are now “common sense,” which is the highest praise for a business book.