See explanations of definitions at the end of the document.

Feeling confused about terms such as lean startup, agile, hypothesis testing and rapid prototyping iterations?

Then this article is for you. Below you find the main steps we follow in this Sprint to help you grow your initiatives in small, but fast steps.

The Sprint involves several steps to go from hypothesis (assumptions) testing to achieving product-market fit and eventually designing for scale using ExO attributes. Here are the key steps along the way:

  1. Defining Your Key Hypothesis To Be Tested: The lean startup methodology starts with formulating hypotheses about your target market, customer problem, and solution. These hypotheses are then tested through experiments and feedback loops to validate or invalidate them. This iterative process helps you refine your understanding of the problem and solution. You typically describe all these hypothesis in a Business Model Canvas (learn about this below), that helps you get an overview of all hypothesis in one page. You can read more here about how to define a good, testable hypothesis.
  2. Functional Prototype: Once you have a hypothesis, you create a prototype, that allow your chosen customer segment(s) to interact with the initiative you are trying to test (before actually building it). You will focus on prototyping just the bare, basic function that allows you to test your assumptions and gather feedback from early adopters. The prototype is designed to quickly validate or invalidate your hypotheses and learn from real-world usage. Read more here about typical types of prototypes you can consider
  3. Pivot or Persevere: Based on the feedback received from your (potential) clients trying your prototype, you analyze the results and decide whether to pivot (change your strategy) or persevere (continue with the current approach). Pivoting may involve changing your target market, customer problem, solution, or business model based on the insights gained from the feedback.
  4. Product-Market Fit: Product-market fit is achieved when your product or service meets a real customer need and generates significant traction in the market. It means that your solution aligns perfectly with the target market’s needs, and customers are willing to pay for it. This stage requires continuous iteration and refinement based on customer feedback.
  5. ExO Attributes for Scale: Once you have achieved product-market fit, you can start designing for scale using ExO attributes. These attributes include leveraging external resources (staff on demand, community and crowd, algorithms, etc.), using big data and AI to drive decision-making, implementing a transformative purpose that inspires employees and customers, creating a flexible and modular organizational structure, and embracing experimentation and learning. Learn more about the ExO Attributes here
  6. Scaling Customer Segment: To scale your customer segment, you need to identify strategies to reach and acquire a larger customer base. This can involve various marketing and sales techniques, such as viral marketing, influencer partnerships, referral programs, and targeted advertising. The goal is to rapidly expand your customer base while maintaining a positive customer experience. ExO Attributes such as MTP, Engagement and Community can contribute significantly to the actual scaling, but also technology such as Algorithms (read more here) and Social Technologies are important.
  7. Driving Marginal Cost of Supply to Zero: To achieve exponential growth, you must drive down the marginal cost of supply towards zero. This can be done by leveraging technology, automation, and economies of scale. By reducing the cost of producing and delivering your product or service, you can increase profitability and expand your market reach. Look at your Key Resources in the Business Model Canvas and consider how you can apply ExO Attributes to reduce cost by factors of 10, 100 or similar, not settling with single digit % improvements.
  8. Congratulations, you are now a (Sprint)Hero and you can follow this process again and again for every new initiative you get interested in testing out (before you build it).

It’s important to note that each step in the lean startup sequence requires continuous learning, adaptation, and iteration. The key is to be agile, open to feedback, and willing to make changes based on the insights gained along the way. None of this happens unless you make it happen. So you hold the key to your success.

As you grow your experience with Lean Startup in your team (and organization), you can start to run these iterations at a faster pace, shortening the time you need to go from Hypothesis to Hero.

BTW, why is it that kindergardeners will always beat us at being iterative?

Learn more here and try the Marshmallow exercise with you team when you need a fun break, that really puts the importance of running fast prototyping iterations into perspective: