{"id":7859,"date":"2020-03-18T10:49:00","date_gmt":"2020-03-18T14:49:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=7859"},"modified":"2022-04-12T22:48:41","modified_gmt":"2022-04-13T02:48:41","slug":"build-measure-learn-loop-lean-startup","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/build-measure-learn-loop-lean-startup\/","title":{"rendered":"Build-Measure-Learn: How to Do It Right (Lean Startup)"},"content":{"rendered":"\n

What is the Build Measure Learn feedback loop from Lean Startup? How do you step through the loop to build your company? Learn more from this guide from Lean Startup<\/p>\n\n\n\n\n\n\n\n

Introduction to Build-Measure-Learn<\/h2>\n\n\n\n

With your startup, your goal is to learn as quickly as you can with disciplined experiments. Central to Lean Startup is the Build-Measure-Learn feedback loop<\/strong>.<\/p>\n\n\n\n

Let\u2019s step through this loop once:<\/p>\n\n\n\n

First, you set your hypothesis<\/a>. <\/strong>What do you believe about your customers that is vital to your business? How are you going to measure this?<\/p>\n\n\n\n

Next, you build the MINIMAL product necessary to test the hypothesis<\/strong>. This is the build step of the Build-Measure-Learn loop.<\/p>\n\n\n\n

Next, you run the experiment<\/strong>. Often this means exposing users to the product and collecting data on their behavior. This is the Measure step of Build-Measure-Learn.<\/p>\n\n\n\n

Finally, you analyze the data and reflect<\/strong> \u2013 how far off was your hypothesis? What do you need to change about your strategy? Should you actually change your entire direction? This is the Learn step of the Build-Measure-Learn feedback loop.<\/p>\n\n\n\n

The faster you move through this Build-Measure-Learn loop, the faster you\u2019ll learn, and the more progress you\u2019ll make. Imagine how much you\u2019d learn from 10 steadily improving prototypes vs 1 giant, fully-featured prototype. <\/p>\n\n\n\n

This part of The Lean Startup summary will teach you new methods on how to learn more<\/a>, faster.null<\/p>\n\n\n\n

Chapter 5: Leap<\/h2>\n\n\n\n

The first step of Build-Measure-Learn is to build something. But what do you build? What should your prototype be?<\/p>\n\n\n\n

Every startup begins with a set of hypotheses about how the business will work. As stated above, there are typically two core hypotheses: the Value hypothesis<\/a> (what your users want), and the Growth hypothesis (how your startup will grow). These are the core of what you want your Build-Measure-Learn to figure out.<\/p>\n\n\n\n

Some hypotheses are very un-risky \u2013 they\u2019re very likely to be true. If your business will rely on advertising for revenue, for example, chances are good that you\u2019ll be able to procure the same advertising rates as competitors in your industry. Online advertising has matured enough that advertisers know how much they want to pay for which types of ads across the Internet.<\/p>\n\n\n\n

But other hypotheses are much riskier and less likely to be true.<\/strong> Often, these riskiest hypotheses underlie the reason your business exists. Namely:<\/p>\n\n\n\n