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- The Lean Startup - Eric Ries: Know if your product will sell before creating it
The Lean Startup - Eric Ries: Know if your product will sell before creating it
Skip months of expensive trial and error
Vijay Peduru
July 11, 2024
Scan time: 3-5 minutes / Read time: 5-9 minutes
Chapters in book: 12 / Chapters in here: 12
Hey rebel solopreneurs 🦸♂️🦸♀️
Are you tired of spending months creating digital products nobody wants to buy?
You'll waste lots of time and money (and get super tired) if you keep making stuff no one wants.
The lean startup from Eric Ries will help you build products your customers want, so you can create successful digital products without wasting time or money.
Just like Tony Stark (Iron Man) needed to test his suit designs with actual field missions before finalizing them, you need to test your digital product ideas before fully building them.
Ready to build profitable digital products without the massive risk of failure?
Let's jump right in!
💰 Multi-millionaire entrepreneurs who love this book
Entrepreneur name | Net worth status | Source |
|---|---|---|
Marc Andreessen | Billionaire | |
Tim O'Reilly | Multimillionaire | |
Ben Horowitz | Billionaire | |
Scott Cook | Multimillionaire | |
Kevin Systrom | Billionaire | |
Tim Brown | Multimillionaire |
🚫 Traditional methods which the author disagrees with
Building a complete product without showing anyone
Writing detailed long-term forecasts and plans
Spending months making a "perfect" product before showing it to real customers
🍹 The book's core solution
Build-Measure-Learn
You'll discover exactly how to test your ideas with real customers before wasting months building something nobody wants (like test-driving a car before buying it!)
This leads to creating products people actually pay for while saving you tons of time, money, and heartache
Eric Ries started as a software engineer with big dreams
He was trying to build successful tech startups that would change the world
The crisis hit when he spent six months coding a product nobody wanted (this crushed his soul and bank account)
His first startup failed spectacularly, wasting both investor money and his time
· · ·
BREAKTHROUGH! Eric realized startups need a completely different approach than traditional businesses
He discovered that when dealing with extreme uncertainty, scientific testing beats detailed planning
His core principle combined lean manufacturing with customer feedback and agile development
This became the Build-Measure-Learn framework that forms the foundation of the Lean Startup method
· · ·
He applied these principles at IMVU, growing it to millions in revenue
The company became profitable and successful (people thought he was some kinda business genius now!)
Eric became a respected advisor to startups and a biz advisor in Silicon Valley
· · ·
Time to explore if Kat, a solopreneur can use these ideas to go from struggling content creator to successful digital product entrepreneur!
Let's get this party started!
📖 The story: Kat's journey to digital product success
Meet Kat:
Her idea: Creating Excel tutorial courses and templates for office professionals who hate spreadsheets
Her target audience: Office workers who need to use Excel but find it confusing and frustrating
Her money making plan: Building digital courses and templates to sell through Instagram and TikTok
Her dream: Quitting her day job and making enough income to travel while working from anywhere (imagine sipping coconut water on a beach while your digital products make money!)
🆘 The crisis
Kat was frustrated after spending three months creating a comprehensive Excel course.
She was ready to give up when sales were almost non-existent despite her growing social media following.
She met Eric at a boba shop while working on her laptop.
Eric was a successful entrepreneur who advised other solopreneurs.
Kat told Eric about her problem.
Razzle-dazzle! I can totally help you with this! exclaimed Eric, striking a superhero pose with his hands on his hips.
Kat felt hopeful for the first time in weeks.
Chapter 1: 💡 Idea factory: What your business plan is hiding from you
🔥 The challenge
Kat was confused about why her detailed business plan wasn't working out in real life
Core Problem: Planning for a future nobody can predict
· · ·
🌈 The big idea
Wham-kabam!, You gotta know about Entrepreneurship is management, Kat!, hollered Eric
Creating a business in uncertain conditions needs a different kind of management than running an established company
Traditional planning fails when you don't know what customers actually want
➡️ Replace detailed planning with experiments designed to test your biggest assumptions
Just like in Jurassic Park when they thought they could control dinosaurs but couldn't, you need to accept that you can't plan everything
· · ·
🏄 Example
IMVU started with a big plan to create an instant messaging add-on
They spent months coding it perfectly based on what they thought users wanted
When they finally showed customers, they discovered nobody wanted to download a new IM add-on
IMVU had to completely change direction to a standalone product, which eventually grew to millions in revenue by testing ideas with real users
· · ·
🎁 The breakthrough
Holy Smokes! blurted Kat, her jaw dropping dramatically
I've been hiding in my apartment creating my course instead of finding out what my audience actually wants
I need to treat my digital product business like a series of experiments, not a fixed plan
Core Solution: Test big ideas before building the whole product
Chapter 2: 🧪 Validated learning: The embarrassing secret behind every successful business
🔥 The challenge
Kat reflecting on how she assumed office workers would want a comprehensive Excel course
But how could she figure out what they actually wanted without wasting months of work?
Core Problem: Making decisions based on guesses instead of facts
· · ·
🌈 The big idea
You need to understand Validated Learning, Kat!, exclaimed Eric
Real knowledge comes from testing ideas with actual customers, not from market research reports
Every assumption about your business is just a guess until you test it with real human behavior
➡️ Create simple experiments to test your most important business assumptions
Just like in The Matrix when Neo had to see the real world for himself, you need to test what's really true instead of just guessing
· · ·
🏄 Example
Zappos founder Nick Swinmurn had a simple question: would people buy shoes online?
Instead of building a complex website with inventory, he took photos of shoes in local stores
When someone ordered, he bought the shoes at retail price and shipped them
This simple test proved people would buy shoes online without trying them on, validating his core business assumption before investing big money
· · ·
🎁 The breakthrough
Holy Moly! exclaimed Kat, blinking rapidly in surprise
I've been assuming what Excel problems office workers want solved without actually testing it
I need to validate my ideas with tiny experiments before creating entire courses
Core Solution: Test your business ideas with real customer actions
Chapter 3: 🔄 Build-measure-learn: The hidden loop that separates winners from losers
🔥 The challenge
Kat thinking about validated learning from the last chat
But she wasn't sure how to actually put that into practice with her digital products
Core Problem: Taking too long to find out if ideas will work
· · ·
🌈 The big idea
You need to understand Build-Measure-Learn, Kat!, boomed Eric
Turn your business ideas into simple experiments that real customers can react to
Measure how they respond with actual data, not just opinions
➡️ Create the simplest version of your idea, get it in front of customers, and track their response
Just like in The Karate Kid when Mr. Miyagi had Daniel wax cars to learn karate by doing, you'll learn about your business by trying things, not just thinking
· · ·
🏄 Example
Food on the Table founder wanted to create an app that generated meal plans based on local grocery sales
Instead of coding an app, he manually created meal plans for one customer based on local store circulars
He charged for this service from day one and gradually built technology to automate each step
By serving real customers and solving real problems, he learned exactly what features mattered before investing in development
· · ·
🎁 The breakthrough
Holy Guacamole! blurted Kat, leaning forward with wide eyes
I've been trying to create the perfect course instead of starting with something simple that solves one problem
I need to create a tiny mini-course solving one Excel problem, see if people buy it, and learn from their feedback
Core Solution: Build small, measure results, learn quickly, repeat
Chapter 4: 🔍 Experiment: Why your biggest business risks are invisible
🔥 The challenge
Kat thinking about the Build-Measure-Learn cycle
But she had so many assumptions about her business model - which ones should she test first?
Core Problem: Not knowing which business guesses are most dangerous
· · ·
🌈 The big idea
Zoinks-a-boinks!, You gotta know about Leap of Faith assumptions, Kat!, hollered Eric
Every business has two main guesses: the value guess and the growth guess
The value guess tests if your product actually helps customers
The growth guess tests how new customers will discover your product
➡️ Identify your riskiest assumptions and design specific experiments to test them
Just like in Inception where they planted a simple idea in someone's mind, you need to test your most basic guesses first
· · ·
🏄 Example
Dropbox founder Drew Houston had a critical assumption: would people use a file-syncing service?
Building the actual product was extremely complex technically
Instead of building it first, he created a simple video demonstration showing how it would work
The video generated thousands of signups to a waiting list, validating demand before writing a single line of code
· · ·
🎁 The breakthrough
Holy Bananas! exclaimed Kat, slapping her hand on the table
I've been assuming office workers will pay for Excel courses without testing if they'll even open their wallets
I need to test my riskiest assumption: will people actually pay for Excel training?
Core Solution: Find your biggest business risk and test it first
Chapter 5: 🚀 Leap: The counterintuitive shortcut to launching faster
🔥 The challenge
Kat thinking about testing her riskiest assumptions
But how could she test if people would pay without building her entire product first?
Core Problem: Spending months creating full products nobody wants
· · ·
🌈 The big idea
You need to build a Minimum Viable Product, Kat!, exclaimed Eric
Create the simplest version of your product that allows you to start learning from customers
An MVP isn't about being cheap or low quality - it's about maximum learning with minimum effort
➡️ Remove any feature, process, or effort that doesn't directly contribute to what you're trying to learn
Just like in Apollo 13 when they had to fix a problem with only the stuff they had on the spaceship, you need to use what you have to fix your biggest problem first
· · ·
🏄 Example
Buffer, the social media scheduling app, started with just a landing page
The page described the product and had pricing plans, but the product didn't exist yet
When people clicked "sign up," they were told it was in development and asked for their email
This simple test validated both the value hypothesis (people wanted the product) and pricing (people would pay for it) before any coding began
· · ·
🎁 The breakthrough
Holy Macaroni! blurted Kat, jumping from her chair in excitement
I've been trying to create the perfect complete Excel course when I could test with something much simpler
I can create a landing page with a mini-course on one Excel problem and see if people actually sign up
Core Solution: Build the simplest version that tests if customers will pay
Chapter 6: 📏 Test: The quickest way to prove your product will succeed
🔥 The challenge
Kat was getting excited about creating a minimum viable product
But she wondered what was the fastest way to test if her Excel course idea would work
Core Problem: Overcomplicating tests when simple ones would work better
· · ·
🌈 The big idea
You need to understand MVP, Kat!, exclaimed Eric
The minimum viable product is the fastest way to start the learning loop
It's not about making something perfect - it's about making something testable
➡️ Create the absolute simplest version of your product that lets you collect meaningful feedback
Just like in MacGyver when he solves problems with just paperclips and duct tape, you need to use the simplest tools to get answers fast
· · ·
🏄 Example
A founder wanted to write a cookbook but wasn't sure if people would buy it
Instead of writing the entire book, she created a simple landing page with the concept and table of contents
She ran $100 of ads to the page to see if people would click the "pre-order" button
This simple test told her which cookbook concept people wanted before she wrote a single recipe
· · ·
🎁 The breakthrough
Holy Moly! exclaimed Kat, nodding enthusiastically
I've been thinking I need the perfect product when what I really need is a quick way to test my idea
I could create a simple sales page for my Excel course and see if people try to buy it before I build it
Core Solution: Build the absolute minimum to test if your idea has demand
Chapter 7: 📊 Measure: The numbers that matter when nobody's buying
🔥 The challenge
Kat thinking about her minimum viable product idea
But how would she know if her experiment was actually working?
Core Problem: Using the wrong numbers to measure success
· · ·
🌈 The big idea
You need to learn about Innovation accounting, Kat!, hollered Eric
Regular business numbers don't tell you if your product is working
You need special numbers that show if customers are actually using what you make
➡️ Establish a baseline, test to improve metrics, and then decide whether to pivot or persevere
Just like in Moneyball when they counted different things in baseball to find what really matters, you need different numbers to track if your new business is working
· · ·
🏄 Example
IMVU tracked user behavior by dividing customers into "cohorts" based on when they signed up
Instead of looking at total signups, they measured how each cohort behaved over time
This approach showed whether product changes actually improved customer behavior
By focusing on cohort metrics rather than vanity metrics, they could tell if improvements were real or just temporary bumps from marketing
· · ·
🎁 The breakthrough
Holy Cannoli! exclaimed Kat, slowly nodding with widening eyes
I've been focusing on follower count rather than tracking if my content actually leads to sales
I need to measure how many people sign up for my offer and keep using it, not just view counts
Core Solution: Track if people keep using and paying for your product
Chapter 8: 🔀 Pivot (or Persevere): How failing can make you more successful
🔥 The challenge
Kat thinking about measuring her experiments
But what if her experiments showed her product idea wasn't working? Should she just quit?
Core Problem: Staying too long with ideas that aren't working
· · ·
🌈 The big idea
Wizzy-wazzy!, You need to understand Pivot (or Persevere), Kat!, exclaimed Eric
A pivot is a planned change in direction to test a new idea about your product or how you make money
It's not failure - it's learning that your current strategy isn't working and changing to a new strategy
➡️ When your experiments consistently fail to improve your metrics, plan a pivot to test a new approach
Just like in The Martian when Mark Watney had to keep changing his plans to stay alive on Mars, you need to be ready to change your plan while keeping your big goal in mind
· · ·
🏄 Example
Wealthfront started as kaChing, a social game where users picked virtual stocks
Their metrics showed users were interested in investment advice but not in playing a game
They pivoted from a gaming platform to an automated investment service
This pivot maintained their core technology but completely changed their business model, leading to billions in assets under management
· · ·
🎁 The breakthrough
Holy Toledo! blurted Kat, rocking back in her chair
I've been so attached to my comprehensive course idea that I wasn't open to changing direction
If my mini-course experiment doesn't work, I need to pivot and try a different approach rather than giving up
Core Solution: Try a new business approach when customers show they don't want your current one
Chapter 9: 📦 Small batches: The shocking truth about why bigger isn't better
🔥 The challenge
Kat thinking about how to implement her experiments
She was worried about how long it would take to create even a mini-course
Core Problem: Working in big chunks that take too long to finish
· · ·
🌈 The big idea
You need to use Small Batches, Kat!, boomed Eric
Working in small batches allows you to move faster and identify problems early
Large batch production creates waste and delays learning
➡️ Break work into the smallest possible batches and complete each one before moving to the next
Just like in Master Chef when cooks who get everything ready first often run out of time, while those who work step by step can change as they go
· · ·
🏄 Example
Toyota revolutionized car manufacturing by producing in small batches
American manufacturers made thousands of parts at once, waiting weeks to discover defects
Toyota produced one complete part at a time, catching quality issues immediately
This approach led to higher quality and lower costs, making Toyota one of the world's most successful car companies
· · ·
🎁 The breakthrough
Holy Guacamole! exclaimed Kat, snapping her fingers and pointing upward
I've been trying to create an entire course at once instead of working in smaller chunks
I can create a single lesson, test it with users, and improve it before moving on to the next one
Core Solution: Break big projects into small chunks and work on one chunk at a time and test it, instead of trying to finish the whole project and realize customers don't need it
🔥 The challenge
Kat thinking about small batches for creating her content
But once she had a product that worked, how would she get more customers?
Core Problem: Growing through random tactics instead of systems
· · ·
🌈 The big idea
Bippity-boppity!, You gotta understand Engines of Growth, Kat!, exclaimed Eric
Growing steadily comes from what customers do, not from one-time marketing pushes
There are three engines of growth: sticky (retention), viral (word of mouth), and paid (advertising)
➡️ Identify which engine of growth fits your business and focus on improving the metrics that power it
Just like in Field of Dreams where "if you build it, they will come" was magic, but in real life you need a way to make people come
· · ·
🏄 Example
Hotmail grew through a viral engine of growth
They added "PS: Get your free email at Hotmail" to every message sent by users
This simple signature turned every user into a marketer for the product
This viral loop helped them acquire 12 million users in 18 months with almost no marketing budget
· · ·
🎁 The breakthrough
Holy Smokes! blurted Kat, her eyes widening with realization
I've been trying random marketing tactics without understanding which growth engine makes sense for my business
I need to focus on viral growth by making my Excel content easily shareable by my existing audience
Core Solution: Pick one growth driver and focus only on improving that one
Chapter 11: 🧘 Adapt: The surprising question that solves any business problem
🔥 The challenge
Kat thinking about growth engines
She was worried about how to keep improving her product as it grew
Core Problem: Fixing surface problems instead of root causes
· · ·
🌈 The big idea
You should learn about Five Whys, Kat!, exclaimed Eric
When problems occur, ask "why" five times to find the root cause
This prevents treating symptoms while ignoring deeper issues
➡️ When something goes wrong, trace the chain of cause and effect back to the root issue
Just like in Sherlock Holmes when he follows clues to find who really did it, you need to dig deeper than what you see on the surface
· · ·
🏄 Example
Toyota used the Five Whys technique when a machine stopped working
Why did the machine stop? Because it overloaded and a fuse blew
Why did it overload? Because the bearing wasn't lubricated properly
Why wasn't it lubricated? Because the lubrication pump wasn't working
By asking "why" five times, they found they needed to add a filter, not just replace the fuse
· · ·
🎁 The breakthrough
Holy Crackers! exclaimed Kat, leaning forward with her hands clasped
I've been fixing surface problems like low engagement without looking for root causes
I need to dig deeper into why people aren't buying instead of just changing my headlines
Core Solution: Find and fix the true cause by asking why 5 times
Chapter 12: 🛠️ Innovate: The playground secret to unstoppable creativity
🔥 The challenge
Kat thinking about root causes and improvement
She wondered how she could keep creating new products while maintaining her existing ones
Core Problem: Not having a safe space to try risky new ideas
· · ·
🌈 The big idea
You need an Innovation sandbox, Kat!, boomed Eric
Create protected space for testing new ideas without disrupting your core business
New ideas need different ways to measure success than products that already exist
➡️ Set aside specific time and resources for experiments with clear boundaries
Just like in Willy Wonka where he had a special room just for making new candies, you need a special time to try new ideas
· · ·
🏄 Example
Intuit created "innovation sandboxes" for new product development
Teams worked on new ideas with different metrics than the main business
They had permission to run experiments that might fail
This approach led to breakthrough products like SnapTax while their core business remained stable
· · ·
🎁 The breakthrough
Holy Moley! blurted Kat, her eyes growing wide
I've been afraid to try new product ideas because I thought it would take all my time
I can set aside specific time each week as my Idea Playground to test new concepts
Core Solution: Set aside specific time each week to test crazy new ideas without risking your main business
🏆 The parting
Our meetings have been super helpful, but this will be our last one, said Eric. Keep in touch and let me know how your Excel business grows!
Remember what Captain America always says - it's not about being perfect, it's about standing up every time you fall. Your biggest advantage as a solopreneur is your ability to learn and adapt faster than anyone else!
Eric gave Kat a fist bump followed by an explosive hand gesture mimicking a mind being blown.
🎉 The happy ending
Six months later, Kat had three small Excel mini-courses each making $1,500 per month in passive income.
Instead of one giant course nobody wanted, she now had targeted solutions to specific Excel problems.
She was able to quit her day job and worked from coffee shops in Bali two days per week (with plenty of beach time!).
🧘♀️ The simple success recipe
The key lessons that transformed the business:
Test ideas with real customers before building them - Save months of wasted work by making sure people want what you're making first (wouldn't you rather know if people will buy your stuff BEFORE making it?)
Create a Minimum Viable Product - The smallest thing you can make to start learning (your first try should make you a little embarrassed—that means you didn't waste time making it perfect!)
Measure what matters - Count things that show what customers really do, not just fun numbers (follower counts are nice, but people who pay you are nicer!)
Work in small batches - Finish small projects instead of big ones that take forever (tiny wins beat giant somedays every time)
Pivot when necessary - Be ready to change your plan based on what you learn (remember, changing your plan isn't failing—not changing is!)
✨ Loosely inspired by...
Kat Norton (Miss Excel), an Excel instructor who creates content on TikTok and Instagram
She stood out by making Excel fun and trendy with dancing tutorials set to popular music
She grew to over 1 million followers and makes seven figures selling Excel courses and templates
🥂 Your turn!
That's it, my fellow rebels!
You can apply the Lean Startup method to any digital product business by focusing on rapid experimentation rather than perfect execution.
As Eric Ries says, "The only way to win is to learn faster than anyone else."
Today, create a super simple landing page for the smallest version of your digital product idea and share it with 5 potential customers to start learning.
Keep believing in your crazy ideas—just test them first! As Thor would say, you have the power within you; the hammer is just a tool to channel it!
Keep zoooming 🚀🍧
Yours 'helping you build a biz with almost zero-risk' vijay peduru 🦸♂️1