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Scaling Lean: Mastering The Key Metrics For Startup Growth
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Is your “big idea” worth pursuing? What if you could test your business model earlier in the process—before you’ve expended valuable time and resources?  You’ve talked to customers. You’ve identified problems that need solving, and maybe even built a minimum viable product. But now there’s a second bridge to cross. How do you tell whether your idea represents a viable business? Do you really have to go through the whole cycle of development, failure, iteration, tweak, repeat?  Scaling Lean offers an invaluable blueprint for mod­eling startup success. You’ll learn the essential metrics that measure the output of a working business model, give you the pulse of your company, communicate its health to investors, and enable you to make precise interventions when things go wrong. You’ll also learn how to:  · ballpark the viability of a business model using a simple five-minute back-of-the-envelope estimation. · stop using current revenue as a measure of progress (it forces you to fly blind and, often, to overpromise to your shareholders) and instead embrace the met­ric of traction—which helps you identify the leading indicators for future business model growth. · set progressive goals that set you up for exponen­tial long-term success by implementing a staged 10X rollout strategy, like one employed by Face­book and Tesla. · stop burying your breakthrough insights in failed experiments, but rather illuminate them using two-week LEAN sprints to quickly source, rank, and test ideas.  Ash Maurya, a serial entrepreneur and author of the startup cult classic Running Lean, pairs real-world examples of startups like Airbnb and Hubspot with techniques from the manufacturing world in this tacti­cal handbook for scaling with maximum efficiency and efficacy. This is vital reading for any startup founder graduating from the incubator stage.From the Hardcover edition.

File Size: 35543 KB

Print Length: 296 pages

Page Numbers Source ISBN: 1101980524

Publisher: Portfolio (June 14, 2016)

Publication Date: June 14, 2016

Sold by:  Digital Services LLC

Language: English

ASIN: B015NTIWS4

Text-to-Speech: Enabled

X-Ray: Not Enabled

Word Wise: Enabled

Lending: Not Enabled

Enhanced Typesetting: Not Enabled

Best Sellers Rank: #92,022 Paid in Kindle Store (See Top 100 Paid in Kindle Store) #70 in Kindle Store > Kindle eBooks > Business & Money > Entrepreneurship & Small Business > Entrepreneurship > Startups #86 in Kindle Store > Kindle eBooks > Business & Money > Entrepreneurship & Small Business > Starting a Business #178 in Books > Business & Money > Small Business & Entrepreneurship > New Business Enterprises

I run a number of lean startup seminars, primarily in the Colorado area, ones that cover the inception->product stage and ones that cover the "how to incubate new ideas in an existing enterprise". Lately the bulk of these have been based on Ash's Lean Canvas, a model that in my opinion exposes risk and next steps more effectively than Alex Osterwalder's BMC (also a great tool).The big issue that comes up after companies run their initial tests and get a first working model is "what next" -- or more specifically, how do maintain the pace of innovation my organization requires after the initial excitement period, and how do I create an organization that supports this pace?Ash's approach in Scaling Lean gives you ways to find your answers to several questions:-- How do I know if I have traction? Specifically, how do I use real-world, non-vanity metrics to know what's working.-- How do I know where my bottlenecks and contraints are? Specifically, what can I do to identify and make progress given the realities of my current situation?-- How do I run effective experiments? What should I be testing, and what should I test first, based on my company's business model, size, etc.-- Where should I focus? How do I add up all the above to know where to spent the limited resources (time, money, and people) I've got?Scaling Lean answers these questions in an effective and concise way, or at least gives you the tools to be able to find the path to answering them yourself (which is what lean startup is all about). It's relatively short, and not filled with too many anecdotes- the real-world examples are well chosen and not just filler (like so many business books).

The next great book by Ash Maurya. My first startup experience was chaotic and ended with frustration. "The Lean Startup" from Eric Ries showed me that there is a methodological approach for managing a startup company. In "Running Lean" I learned how to actually implement that idea in my new startup and the clear strategy of the 3 stages p/s-fit, p/m-fit and scale. With "Scaling Lean" I've now received additional tools to measure progress and success and how to communicate with the team and the investors: it's not about revenue - it's about traction! Simply great for all startups and also for intrapreneurs.

The best first: Ash's knowledge, processes and tools are applicable for both classical Start ups as well as for innovation products in established companies. In fact the business relevance of the later is even bigger. Therefore I apply Ash's Lean approach in both sectors: As Business Angels and Board Member of Switzerland's biggest Business Angel Club for Startups as well as Trainer&Coach for established companies.Ash's first book "Running Lean" is a practical guide, which walks you step by step from Business Model Generation with the Lean Canvas to the Business Model Validation by executing experiments with the Build-Measure-Learn Feedback Loop. Scaling Lean is focusing on the next step following the Business Model Validation. This is when and how to scale and above all with which metrics. By doing so one can retire the old fashioned business plans with the approximative and therefore fast 10x Model. Great are also the proposed metrics to measure progress like Retention, as Revenue, ROI are close to zero or negative at the beginning. Therefore we need metrics which are linked with each other and give reasons why Revenue is sluggish. To sum up: Like Running Lean I recommend also Scaling Lean to many friends including money back guarantee by saying that I will buy there book if it does not fulfill the promise in order to give it to somebody else as a present. So far it did not have to buy anybody's book :-)Fredi Schmidli, Board Member StartAngels.ch and Managing Partner, pragmatic-solutions.ch

For many years I struggled with setting goals--not just in business but in my personal life as well. I would agonize over trying to pick the right target and make the right plan only to change my goal almost immediately after confronting a painful dose of reality or even just finding new information.My frustration with goal setting led me to adopt a "no goals" approach. I would only focus on the process and just "do the best that I could." This was better than trying to define the perfect goal but it still had a major shortcoming: I had no idea how to prioritize this idea over that. The "process-only" approach was good for developing my skills but not for "counting the costs." Sometimes I would execute projects very skillfully but they were doomed to go nowhere from the start.Ash's solution is brilliant. He teaches you how to use the "Fermi Estimation" and "orders of magnitude" to quickly ballpark your idea and then work backwords to determine what inputs you need to get there. Immediately after doing the exercise you'll know which ideas are clearly not worth pursuing.If you struggle with estimating revenue targets and timelines, you definitely need to read this book.The Fermi Estimation is a method Ash teaches early in this book on how to create ballpark goals based on "orders of magnitude"

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