There is one way of doing business nowadays with less time and money exposure, that is build a business start up by trying to build new ideas and finding paying customers.
The start up approach of doing business is not new, it has been practiced by the Japanese mostly in their factories long years ago where their target was eliminating any work or investment that doesn’t produce value for customers.
The concept has now been gaining ground in the US because of its low investment requirement to start with. This approach of creating lean companies has attracted investors and entrepreneurs of Silicon Valley.
“If it works, it will reduce failure rates for entrepreneurial ventures and boost innovation and that a big deal for the economy,” said Thomas Eisenmann, a professor at Harvard Business School.
The concepts also apply both to designing and developing a product and at the same time focus in developing a market with emphasis of what customers really want while in product development, it emphasizes efficient and rapid development of the product through small teams and constant upgrading.
With the advent of technology it energizes the business startup process of doing business on the web. “The agile practices have to be adapted, shifting the focus somewhat from generating stuff to learning what customers will want.
Most technology start up fail not because the technology doesn’t work but because they are making something that there is not a real market for,” Eric Ries, engineer, entrepreneur and blogger.
The general idea is to quickly develop a ‘minimum viable products’ designed with the smallest set of features that will please some group of customers.
It continually experiment by tweaking its offering, observing how the market responds and upgrading the product features accordingly that would suit to the demand.
The goal, as explain by Steven Blank, a serial entrepreneur, is to accelerate the pace of learning “A business startup is a temporary organization design to discover a profitable, salable business model,” he said.