According to new research by Harvard Business School’s professor Shikhar Ghosh, it is noted that more than 75 percent of all startups fail. Being aware of this information, it may cause you to pause before launching a new venture, whether it is a small business or a tech startup.
However, it seems that times have changed, and this information may not be entirely correct. There is a new study performed by Statistic Brain illustrating that 50 percent of U.S. startup companies fail after five years, and more than 70 percent fail after 10 years. It is a fact that there has been a shift toward the better, and startups can face challenges and survive in the market longer than before.
If you are somehow involved in the startup world, you have probably heard the term “lean startup”. The lean startup movement methodology is a few years old, and it involves taking a risk. It still hasn’t gone totally mainstream, but with a good guideline and implementation, we can begin to feel its full impact sooner than expected.
By launching high-quality entrepreneurship programs, the Academy for a Corporate Entrepreneurship (AfCE) provides help and best practices for businesses that want to implement sustainable entrepreneurship strategies through the lean startup methodology.
Every company requires assistance and support in their innovation process. AfCE uses the lean startup method within corporations, and are not afraid to show corporate startup teams how important it is to follow a quality and sustainable entrepreneurship strategy to survive in the market.
Throughout this content, you will learn where the lean startup movement came from, how the lean startup innovation works, and most importantly, ways in which you and your business can benefit.
What is the lean startup and where did it come from?
When an existing company or a startup decides to promote a new product, the lean startup method is here to help them develop a product that will satisfy the customers’ needs and desires.
This not-so-new methodology focuses on efficiency by receiving customer feedback early, which can help in raising your business to a whole new level.
Usually, companies are creating and implementing business plans. The lean startup method uses a business model based on hypotheses that are rapidly tested. When customers demonstrate their desire for a product, startups are developing a product customers want and then hoping that demand will emerge.
When customers express their desire for a product, companies begin making small adjustments called iterations of products. With these adjustments, companies may change their target customers or modify the product which will serve the current target customer group even better.
For example, there is a healthy meal delivery service, who’s target customers are single 20-somethings, living in urban areas. After implementing the lean startup method, and doing a better analysis, the healthy meal delivery service has noticed that it has developed a better market by addressing 30-somethings and specifically mothers of newborns. The next step is to change the target customer group or to alter the type of food it serves to provide a better, more superb nutrition for new mothers. Through this simple example, we can establish that the lean startup method identifies a problem and is thus offering a solution.
However, keep in mind that the lean startup methodology is not focusing only on startups. Even more experienced companies and big corporations have noticed the power of this method and how the lean startup can help them solve any problem and survive in the market.
Also, this method is present in the companies hiring process, and is different from the traditional business hiring model. The traditional business hiring model searches for workers with experience and ability, while the lean startup hiring method searches for workers who can adapt, learn and are proactive individuals.
When startups and companies are creating financial reports in their business plans, they are focusing on income statements, balance sheets and cash-flow statements. When they use the lean startup method in their financial reports, they focus on customer acquisition cost, customer churn rate, lifetime customer value and how viral their product could be. When you compare both financial reporting metrics, you can see the effectiveness of the lean startup method, especially if you want to have a sustainable business.
Before explaining more about AfCE programs and how they can help international businesses by leveraging proven best practices in a structured and scalable way, we should first understand where and how the lean startup method originated.
This useful method was developed by American entrepreneur Eric Ries, founder and CEO of the Long-term Stock Exchange (LTSE). He has researched and explained this great method in his book called “The Lean Startup,” which has been translated into 30 languages and has changed every approach to business. He explains the importance of understanding your target audience, why to focus more on actionable metrics, why to create an MVP and how to learn when to adapt and iterate without wasting too much time.
Lean startup consulting
Businesses need a lean startup methodology, and thanks to AfCE programs, now they can increase the success rate of their innovation projects.
AfCE as your startup consultant
When beginning to consider the lean startup methodology and how it best applies to your company or business, you can envision AfCE to be your own personal lean startup consultant. With thorough programs and instruction that brings these innovative ideas directly into your office or boardroom, you can begin growing your business and supplying the support that your team requires to excel.
The programs that AfCE offers to their customers are designed to increase the innovation capability of businesses, and to maintain competitiveness in the market. You can find three types of roles in their programs: the Innovation Manager responsible to analyze, find and scale innovation, the Intrapreneur who must explore and validate ideas successfully, and the Innovation Mentor who offers quality coaching to others so that your innovation efforts can be sustainable.
AfCE offers six levels of certification, as Intrapreneurs or Innovation Managers progress through various Innovation Phases.
- Ideation is the first part of the program, where you will have an opportunity to identify the right people and ideas. As part of the lean startup method, there are a few key points in this program that are very useful in developing your business:
- By using an Intrapreneur Personality Test, you can increase the quality of your program by up to 40 percent, you can balance corporate startup teams and, most importantly, you can discover intrapreneurs who would be competent for your program.
- An AfCE e-learning course, which we will discuss later, can teach you the fundamentals of Intrapreneurship.
- An ideation and team formation workshop can help you understand how to detect a problem, who your customer is, what kind of solution is the best for your problem and how to communicate the idea.
- Kick box, as a part of the Ideation workshop, shows low-cost introduction to innovation, increases effectiveness of follow-on programs and lets the market determine the good ideas for the business. The program is organized in six levels, including 10 assignments and four experiments that are self-paced.
- Innovation strategy fast track is here to help you plan how to overcome your biggest challenges to implementing innovation, and develop a winning innovation strategy within your organization.
- The Portfolio mapping and Innovation thesis enables you to have a clear idea on how to build the foundation for your innovation by using a specific guideline of world-class mentors.
- The Discovery Phase is the second innovation phase participants enter after the Ideation Phase.
- The Kickoff event is a two-day workshop where you can learn lean experiment design and tracking, you can identify the most critical assumptions, practice data-based decision making and much more.
- A corporate startup accelerator cuts through the “innovation fluff” to achieve problem-solution fit and shows intrapreneurs how to develop and test their ideas.
- The Prototype Fund helps your startup teams run sustainable experiments and MVP services with super-fast turnaround times.
- Innovation accounting for discovery is a workshop that helps innovation sponsors understand the KPIs of discovery and how to evaluate a team’s progress.
- The Incubation Phase is the third innovation phase participants enter after the Discovery Phase where they focus on finding product market fit.
- Incubation sprints are used to build the right solutions for your customers before you launch your product.
- The Incubation Development Fund is similar to the Prototype Fund workshop. Thanks to the Incubation Development Fund, your company will be able to build and test solutions using ad-hoc development resources.
- Lean experiment infrastructure focuses on empowering employees to rapidly collect real data and most importantly increase the speed of learning and the quality of decision making within the company.
- Innovation Accounting for Incubation helps teams determine and master the growth engine(s) and KPIs that are right for a new product.
- The Launch Phase is the fourth innovation phase participants enter after the Incubation Phase.
- The Go To Market Pilot, as a part of the Launch Phases workshop, focuses on a specialized sprint mentoring approach, and it is the last step before launching your innovation project. The value of this last workshop is turning your project into a sustainable, viable venture and dramatically increasing the number of real customers.
Contact us today and learn more about the programs and how they can help your business develop and survive on the market.
The lean startup e-learning course
The Academy of Corporate Entrepreneurship has launched a new e-learning course which will guide you through the whole process of the lean startup. This e-learning course introduces you to intrapreneurship and helps you understand the fundamentals of intrapreneurship.
The concept of the course is simple and useful for every team member or a supervisor within the company. It is organized in five modules, and each module has between one and three chapters. At the end of each module, you can test your knowledge by taking a short test with approximately eight questions. There is no time limit, and each test can be resumed later. These tests are a great way to check your knowledge and understand the bullet points from every module.
In this way, you will gain a better understanding of the lean startup concept and methodology, and you can easily implement it in your business.
Some modules presented in the e-learning course are connected with AfCE workshops. You can combine the knowledge and experience from the workshops and this e-learning course to understand how the lean startup method works, and what you should prioritize in your product to satisfy the needs and desires of your customers, allowing you to survive in the market.
At the end of this e-learning course, you can find all of the resources and assignments by the AfCE instructors, along with a nice congratulatory video with your certificate. The course is well-structured and intended for everyone who wants to increase the success rate of their innovation projects.
The lean startup education and its benefits
More and more startups and big companies are realizing that the lean startup method can help them make wise decisions about their products, and learn how to approach their customers and retain them on a regular basis.
Of course, there will always be people who have strong arguments against the lean startup innovation, but we can all agree that this alternative approach in business offers changes and lessons based on science.
The Academy of Corporate Entrepreneurship is here to show big companies that lean startup education is necessary so that they can make changes immediately.
Let’s start today and learn how we all can benefit from the lean startup education!