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Ash Maurya - Running Lean: Iterate from Plan A to a Plan That Works

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Ash Maurya Running Lean: Iterate from Plan A to a Plan That Works
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Running Lean: Iterate from Plan A to a Plan That Works: summary, description and annotation

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Were building more products today than ever before, but most of them fail--not because we cant complete what we want to build but because we waste time, money, and effort building the wrong product. What we need is a systematic process for quickly vetting product ideas and raising our odds of success. Thats the promise of Running Lean.

In this inspiring book, Ash Maurya takes you through an exacting strategy for achieving a product/market fit for your fledgling venture. Youll learn ideas and concepts from several innovative methodologies, including the Lean Startup, business model design, design thinking, and Jobs-to-be-Done. This new edition introduces the continuous innovation framework and follows one entrepreneurs journey to uncover, design, and build a product that matters.

  • Know when to pivot by changing your plans course
  • Maximize your efforts for speed, learning, and focus
  • Learn the ideal time to raise your big round of funding
  • Find a problem worth solving, then define a solution
  • Engage your customers throughout the development cycle
  • Continually test your product with smaller, faster iterations
  • Build a feature, measure customer response, and verify or refute the idea

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Running Lean by Ash Maurya Copyright 2022 Ash Maurya All rights reserved - photo 1
Running Lean

by Ash Maurya

Copyright 2022 Ash Maurya. All rights reserved.

Printed in the United States of America.

Published by OReilly Media, Inc. , 1005 Gravenstein Highway North, Sebastopol, CA 95472.

OReilly books may be purchased for educational, business, or sales promotional use. Online editions are also available for most titles (http://oreilly.com). For more information, contact our corporate/institutional sales department: 800-998-9938 or corporate@oreilly.com .

  • Editors: Nicole Tache and Mary Preap
  • Production Editor: Kate Galloway
  • Interior Designer: David Futato
  • Cover Designer: Karen Montgomery
  • Illustrator: Kate Dullea
  • February 2011: First Edition
  • February 2012: Second Edition
  • March 2022: Third Edition
Revision History for the Early Release
  • 2021-09-08: First Release

See http://oreilly.com/catalog/errata.csp?isbn=9781098108779 for release details.

The OReilly logo is a registered trademark of OReilly Media, Inc. Running Lean, the cover image, and related trade dress are trademarks of OReilly Media, Inc.

The views expressed in this work are those of the author, and do not represent the publishers views. While the publisher and the author have used good faith efforts to ensure that the information and instructions contained in this work are accurate, the publisher and the author disclaim all responsibility for errors or omissions, including without limitation responsibility for damages resulting from the use of or reliance on this work. Use of the information and instructions contained in this work is at your own risk. If any code samples or other technology this work contains or describes is subject to open source licenses or the intellectual property rights of others, it is your responsibility to ensure that your use thereof complies with such licenses and/or rights.

978-1-098-10870-0

Introduction
A Note for Early Release Readers

With Early Release ebooks, you get books in their earliest formthe authors raw and unedited content as they writeso you can take advantage of these technologies long before the official release of these titles.

A Tale of Two Entrepreneurs

Im going to start by telling you a story about two entrepreneurs.

Lets call them Steve and Larry.

Both of them studied at the same university, got good grades, and after graduation, both went on to work at a high-tech startup where they quickly grew into key roles.

After a few years, they both get hit with an idea for a startup and decide to quit their jobs and venture out on their own.

Even though Ive given them names to make them more personable, I want to emphasize that what makes them similar isnt their age, gender, or geography, but that they both got hit with a big idea and decided to act upon it

Entrepreneurs are everywhere.

They look quite similar at the outset, but what differentiates them is how they look a year later.

A year later Steve is still building his product He has no product revenue - photo 2

A year later, Steve is still building his product. He has no product revenue and relies on part-time freelancing work to fund his product development. And he works alone.

Larry, on the other hand, has a growing customer base, growing revenue, and a growing team.

How did each of them end up in such a different place?

To answer that question, lets take a flashback

A Build-First or Investor-First Approach is Backwards
1 year ago

Steve is at this desk lost in thought. Earlier that day, his manager told him that their parent company (from a recent acquisition) would be shutting down their offices in a couple of months. And Steve was given a choice to either relocate to headquarters or take a severance package.

Steve reads this as a sign.

He had always planned on starting his own company when the timing was right. After graduating from university, he made a conscious decision to join a promising startup in order to gain some first-hand experience, before venturing out on his own. Even though his startup had a few bad product starts, they did eventually manage to get acquired. Steve felt really proud to have been part of the core team.

This may be as good a time as any he thinks to himself. He decides to take the evening to think things over.

Steve estimates that if he keeps his expenses in check, the severance package and his savings would provide him with a year of runway to get something off the ground. He does have this one augmented reality (AR) / virtual reality (VR) idea that hes been noodling around in his head for a few months already

The next day, he decides to take the plunge and accepts the severance package.

Off to the races

Steve wastes no time getting to work and immediately starts building out his product. He anticipates that if he stays focused and works full-time without distractions, he should be able to launch the first version of his product in three months.

Figure I-1 Steve in the metaphorical garage He wants to build his product the - photo 3
Figure I-1. Steve in the metaphorical garage

He wants to build his product the right way, so like a craftsman, he meticulously goes about designing and building his product.

But little things start taking longer than expected and begin to add up weeks quickly turn into months.

6 months later

Steve is starting to get nervous. The product isnt up to his standards and his revised estimates put the product out at least another three monthsmaybe even six months.

Hell be out of money by then.

He realizes he needs help.

He hits up some of his close friends and tries to recruit them offering up generous equity in exchange. But they dont see what he sees, and find it hard to justify leaving their well-paying jobs.

Figure I-2 Nobody sees what Steve sees Steve attributes this setback to a - photo 4
Figure I-2. Nobody sees what Steve sees

Steve attributes this setback to a lack of vision on his friends part, and is even more determined to find a way to finish his product.

He decides to hit the pitching circuit and raise money.

He starts by contacting his previous startups founder, Susan, who readily agrees to meet with Steve. Susan likes the idea and offers to introduce Steve to a number of investors.

She leaves him with this advice: Make sure you put together a bullet-proof business plan first.

Steve has never written a business plan before. So he downloads a few templates and picks one he likes. As he starts writing, he finds that he doesnt know the answer to many of the things being asked, but does his best anyway to complete the plan.

Hes especially encouraged by the financial forecast spreadsheet.

The more he plays with the numbers, the more hes convinced that hes on to something really big. He even has to tweak a few numbers down to downplay the fantastic model he has created.

He knows a lot is riding at stake, so he spends many more days developing his elevator pitch, outlining his product roadmap, and polishing his 10-page slide-deck.

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