For too long, entrepreneurs have launched new ideas with the assumption that “if you build it, they will come.” However, the Information Age has flipped that concept on its head.
Today, strategists have a world of data at their fingertips. They don’t have to just build something and hope customers respond. They can see in real time whether that market exists, as well as what they and their friends respond to most. Consequently, the successful businesses are those who pay attention to changes in customer behavior, then continually iterate their product or service to respond to those changes.
This concept formed the foundation of the Lean Startup movement – an idea popularized by famed Silicon Valley entrepreneur Eric Ries. In this video, Alistair Croll, Solve for Interesting founder and “Lean Analytics” author, explains how companies can leverage new technologies to find and use the data to support this startup process.
He suggests companies:
Pinpoint the business’s most important metric for growth (e.g. revenue)
Identify the business model’s riskiest aspect
Establish a Minimum Viable Product, or a strategy to test the risk against the growth metric
Analyze the results
Modify the business model based on the results
Repeat the process until you discover your market
Watch the video below to learn more about how companies such as Flickr, AirBnB.com and Twitter have successfully implemented this model.