The Lean Startup
This lesson briefly describes the changes that have occurred in teaching and learning entrepreneurship. Historically there has been a focus on developing feasibility studies and business plans. More recently, the Lean Startup methodology has become popular. The key to the Lean approach is to build a simpler plan, called a Business Model Canvas, or Lean Canvas as a starting point. From there we identify the assumptions inherent in the Canvas, and then focus on working with customers to get a feel for how well the assumptions in the business model are actually supported.
The Lean Startup impacts how equity can be split up among students. Since so many things happen with students on projects and so many changes, the Slicing Pie model provides a dynamic equity split that handles people leaving and joining the entrepreneurial endeavor.
The readings include a great article on Why Lean Changes Everything and several pointers to short articles on how the Lean Startup has been implemented by Groupon and Product Hunt.
The Learning Objectives for this lesson are:
- Understand the difference between the business plan and the lean startup approach
- Recognize how this difference impacts students studying entrepreneurship and instructors teaching entrepreneurship
- Know two good examples of pivots
- Comprehend dynamic equity splits and why they are considered better than traditional equity splits