The Lean Startup: Part Three - AccelerateEricksson González Reyes

BatchThe first concept that we find in this chapter is the “single-piece flow”. This consist that, for example, if we have 100 products to make, it will be easier, faster and more productive (in some cases) if we do a full product per timer instead of making one process of all the products, the another, and another, until we finish the product. The reason is because we have small-batch approaches and have a lot of benefits, for example, if our product have some fail in the last part of its development, at the large-batch approach, we won’t find this until almost all the products were done, but in the small-batch approaches, we can figure out this almost immediately.

Batch

GROW

The engine of growth is the mechanism that startups use to achieve sustainable growth. The word sustainable is to exclude all onetime activities that generate a surge of customers but have no long-term impact, such as a single advertisement or a publicity stunt that might be used to jump-start growth but could not sustain that growth for the long term. Sustainable growth is characterized by one simple rule: New customers come from the actions of past customers.

THE THREE ENGINES OF GROWTH

Engines of growth are designed to give startups a relatively small set of metrics on which to focus their energies.

The Sticky Engine of Growth: if the rate of new customer acquisition exceeds the churn rate, the product will grow.

The Viral Engine of Growth: The viral coeficient measures how many new customers will use a product as a consequence of each new customer who signs up.

The Paid Engine of Growth: Each customer pays a certain amount of money for the product over his or her “lifetime” as a customer. Once variable costs are deducted, this usually is called the customer lifetime value

Adapt

You need to build an adaptive organization by investing in the right amount of process to keep teams nimble as they grow. So you can go as fast as you can with your workers and always adapt your business to the changes that happen to the market through the time and the clients.

INNOVATE

Conventional wisdom holds that when companies become larger, they inevitably lose the capacity for innovation, creativity, and growth. As startups grow, entrepreneurs can build organizations that learn how to balance the needs of existing customers with the challenges of finding new customers to serve, managing existing lines of business, and exploring new business models—all at the same time. And, if they are willing to change their management philosophy.