{"id":7907,"date":"2020-03-16T11:42:00","date_gmt":"2020-03-16T15:42:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=7907"},"modified":"2022-04-12T22:07:55","modified_gmt":"2022-04-13T02:07:55","slug":"lean-experimentation-lean-startup-experiments","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/lean-experimentation-lean-startup-experiments\/","title":{"rendered":"Lean Experimentation: How to Do It Right (Lean Startup)"},"content":{"rendered":"\n<p>What is lean experimentation in a startup? How do you run lean experiments to learn more for your company? Learn the tips from Lean Startup.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Introduction to Lean Experimentation<\/h2>\n\n\n\n<p>Lean Startup methodology treats <a href=\"https:\/\/www.shortform.com\/blog\/building-a-startup\/\">building a startup<\/a> as science:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Create a hypothesis. What do you believe that\u2019s important to your business?<\/li><li>Design an experiment to directly test that hypothesis. Run the experiment and gather data.<\/li><li>Reflect on the data \u2013 can you validate or reject your hypothesis?<\/li><\/ul>\n\n\n\n<p>Your <a href=\"https:\/\/www.allencheng.com\/value-hypothesis-growth-hypothesis-lean-startup\/\">hypotheses<\/a> should revolve around the most important problem of a startup \u2013 how to build a sustainable business around your vision.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Principles of Lean Experiments<\/h2>\n\n\n\n<p> Later we\u2019ll cover more tactics around how to actually design and test hypotheses in lean experimentation, but here are important principles to remember throughout. <\/p>\n\n\n\n<p><strong>In lean expreiments, the best way to understand human preferences is to track behavior of real people, not ask for opinions.<\/strong> People often can\u2019t verbalize what they actually want \u2013 cue the classic apocryphal Henry Ford quote, \u201cIf you asked people what they wanted, they\u2019d have said faster horses.\u201d But when they click a button or pull out their wallets, you know they really want something.<\/p>\n\n\n\n<p><strong>Think about the <em>cheapest<\/em>, <em>fastest<\/em> lean experiment you can run to validate the hypothesis.<\/strong> Simplify the product to the core essentials needed to run the experiment. Resist the urge to build more than is absolutely necessary \u2013 as you\u2019ll learn, sometimes you can fake it \u2018til you make it without a real product.<\/p>\n\n\n\n<p><strong>Launching early gives you more customer information earlier. <\/strong>You learn earlier if customers actually want what you\u2019re building. You also discover customer concerns you couldn\u2019t have predicted in a vacuum.<\/p>\n\n\n\n<p>This is in strict contrast to the usual market research\/strategic planning process. Traditionally, you would try to research everything possible about your core user, then build your product to polished perfection, then release with a big launch party. As you saw with <a href=\"https:\/\/www.shortform.com\/blog\/imvu-history-eric-ries-lean-startup\/\">IMVU<\/a>, this invites failure <strong>when you build something customers don\u2019t even want<\/strong>.<\/p>\n\n\n\n<p>We\u2019re going to run through a few examples of lean experimentation showing these principles at work. Notice how the same underlying principles apply to vastly different companies and scenarios.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Lean Experiment: Village Laundry Service<\/h2>\n\n\n\n<p>In India, washing machines are scarce. Laundry is primarily done at home or by paid cleaners who wash clothes in river water and hang to dry, often taking over a week to return clothes.<\/p>\n\n\n\n<p>At startyo Village Laundry Services, Akshay Mehra saw an opportunity to introduce laundry services with modern machines for people who couldn\u2019t afford them. Their hypothesis to run lean experiments on?? Customers would pay to have their laundry cleaned and returned within the same day.<\/p>\n\n\n\n<p>To experiment leanly, they launched a <strong>simple prototype<\/strong> \u2013 a truck with a washing machine mounted on the back. This was just a marketing gimmick \u2013 they really took the laundry somewhere offsite and cleaned it there. But it was just enough to test their hypothesis with real customers and find out what they really wanted.<\/p>\n\n\n\n<p>For example, they learned that the truck was actually kind of sketchy looking \u2013 customers were afraid they\u2019d drive away with their clothes, never to return. In response, they built a more substantial, reputable-looking kiosk. They also found that customers were willing to pay a premium for faster service and ironing.<\/p>\n\n\n\n<p>Through all their <a href=\"https:\/\/www.shortform.com\/blog\/validated-learning-lean-startup\/\">validated learning<\/a> and lean experimentation, Village Laundry Services ended with their final version \u2013 a mobile kiosk with its own washer and dryer that could service clothes on site.<\/p>\n\n\n\n<p>These two examples seem vastly different on the surface. One was leading the forefront of e-commerce during the dotcom boom. Another was introducing convenience to a developing region.<\/p>\n\n\n\n<p>But the lean experimentation principles were the same:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>They formed a hypothesis about the core customer need that would drive their business.<\/li><li>They started with the <strong>bare minimum product<\/strong> needed to test the hypothesis.<\/li><li>They studied real <a href=\"https:\/\/www.shortform.com\/blog\/user-behavior\/\">user behavior<\/a> by observing their actions, not simply by asking questions.<\/li><li>From this baseline, they could experiment further.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is lean experimentation in a startup? How do you run lean experiments to learn more for your company? Learn the tips from Lean Startup.<\/p>\n","protected":false},"author":2,"featured_media":7873,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,79],"tags":[78],"class_list":["post-7907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-entrepreneurship","tag-lean-startup","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Lean Experimentation: How to Do It Right (Lean Startup) - Shortform Books<\/title>\n<meta name=\"description\" content=\"What is lean experimentation in a startup? How do you run lean experiments to learn more for your company? 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