The Lean Startup Methodology – Everything you need to start!

Are you an entrepreneur looking to launch out into the
business world? It is important that you consider creating your business
through the lean startup way, as proposed by Eric Ries. Through this approach,
you will be able to create and manage your startup as well as deliver your
products faster. If you are looking for a way to steer a startup and grow it
faster, you need to learn everything about the lean startup methodology.

You will not be like those startups that begin with a
product idea that you think people might want. Why should you spend months or
even years trying to perfect the product only for it to be rejected when it
reaches the market? When customers fail to adopt the product, the result is the
failure for the startup.

That’s exactly lean startup by Eric Ries sought to address.
Check out the following lean startup summary.

Eliminating uncertainty

A number of traditional startups cannot claim to have
specialized management. They have been forced to come up with a new product or
service without the ability to predict its acceptability. Many have been forced
to abandon the process, altogether. Why shouldn’t they? After all, they have a
â€just do it’ attitude that’s bereft of any form of management. The lean startup
approach by Eric Ries provides the tools an entrepreneur can use to
continuously test their vision. Once you have a product development methodology
in place, just why should your business fail?

Developing a minimum viable product (MVP)

It is not possible to say you know everything about the lean
startup methodology if you haven’t heard about the build-measure-learn feedback
mechanism. What’s the problem that you want to solve? Once you’ve got that
figured out, the next step is developing a minimum viable product (MVP). That’s
followed by the development of mechanisms to measure how well the product is
performing in the market. By utilizing the â€Five Whys,’ you should be able to
brainstorm problems and find the possible solutions. That way, you will be able
to tell whether you are moving in the right direction or not. If anything, you
should be able to easily change direction when you notice that your product is
not doing well.

Working smarter not harder

According to the lean startup summary, every startup is an
experiment that tests and provides answers to certain questions. It shouldn’t
be about whether a product can be built, but rather about whether it should be
built. The experiment is your first product. Its success will determine how
successful a manager will be in promoting the product to potential consumers,
bringing in employees, and building the actual product. That way, they can test
the ability of the product to solve a real problem and make improvements as
need arises.

Validating learning

You cannot know how successful you are as a manufacturer if
you don’t know anything about the quality of your products. Through validated
learning, you should be able to demonstrate progress, even in the face of
unforeseen uncertainties. It is about focusing on building what customers want
and are ready to pay for. That way, it is easier to drastically shrink the
product development process and bring the product launch closer than expected.
As an entrepreneur, there is no reason why you shouldn’t adapt your plans
bit-by-bit.

Why don’t you try the lean startup methodology by Eric Ries?

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Increasing Profitability Through Dynamic Small Business Solutions

Starting with a small business provides entrepreneurs a lot of excitement and motivation since there are more business opportunities to take in order to grow a business. With dedication, determination, and hard work, any small business owner can make a business grow especially with the use of the right business tools. If your small business has been slowly growing for the past years and some systems are already impacting your business’ growth potential, then it’s time to use business solutions that will improve systems in your business.

There are now a lot of companies offering dynamic small business solutions. These business tools usually allow businesses to have better insight about the business, improve financial management, and increase sales. When it comes to effective dynamic business solutions for small to medium businesses, some of the most popular tools used today are the CRM and ERP.

What are CRM and ERP?

CRM or Customer Relationship Management and ERP or Enterprise Resource Planning are tools developed to increase business profitability. These business solutions function in similar ways as they both aim to help business increase profits and improve growth potential by improving various business systems.

Some businesses have integrated ERP and CRM systems since some functions of these two tools overlap. However, the core functions of these two systems differ in various ways. Before using these tools for your business, it is important to have a clear understanding of these two tools as a separate system so you can also clearly understand the impact of each tool in your business operations.

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Customer Relationship Management (CRM)

CRM software focuses on the customer-side of your business operation. CRM tools manage customer information and data which are used all across your business operation from managing and sales to accounting. With a quality and effective CRM system, a business should be able to capture and put into data all interactions with a customer and with this data, business can have better insight about customer relationship and devise a plan to build and improve customer relationship.

Enterprise Resource Planning (ERP)

This business solution is the system focused on your business operation. It is designed to help business processes to become more efficient and effective. With an effective ERP system, core business functions can be really improved from accounting, inventory, warehousing, and management. It provides real-time updates to various departments of the business so employees and executives can have the latest information about the business. ERP software can also provide business owners a heads up with its forecasting ability which is very vital in solving business problems. With a business forecast, businesses can predict outcomes and make preparations in case a problem is anticipated.

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The Difference

Now that you understand the functions of each business solution, it is now easier to identify their differences. While both systems are designed to increase business profits, their approaches differ in various ways. As mentioned above, ERP focuses on the business process while CRM focuses on the customers. Another great difference is that ERP is designed to make business operations more efficient by reducing capital expenses on business processes like cutting costs. CRM, on the other hand, increases profits by helping the business improve sales volume. This is because improved customer relation translates to customer loyalty which in return results to increase sales and profits for the business.

Most companies nowadays use business solutions integrating these two important business tools. With an integrated CRM and ERP systems, you can achieve customer expectations and satisfaction while also reaching your business goals. These tools require cost but it is definitely worth it, especially for small businesses, once processes in the business is improved and better customer relationship is achieved. Small businesses will not only be able to increase business profitability but will also be able to take advantage of its growth potentials.

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