Essentials of entrepreneurship

Hello!

We are back at our Moebio blog and ready to start the first edition of Design Health Barcelona next Friday (check out our agenda for event details)!

They are exciting times for us… and for our fellows! From September 2013 to May 2014, all of them, young talented men and women, will receive the necessary knowledge to identify unmet clinical needs and design and develop innovative solutions… in one form or another. At the end of the program, some of the fellows will found their own start-up, some will join already existing companies… Whatever the situation, being an entrepreneur, an innovator, as amazing as it is, it is not an easy task. It requires both hard work and a big dose of realism. And this is our first post after summer about.

There are plenty of ideas and opinions about how best to focus an organization’s resources and efforts for success. Some years ago, management guru Peter Drucker wrote an intriguing little book titled The Five Most Important Questions You Will Ever Ask About Your Organization. In just under 100 pages, Drucker tells everything a person will never need to know about where to focus his/her organization and how to do it. The 5 crucial questions Drucker poses are:

–       What is your business’ reason to be?

–       Who is your customer?

–       What does your customer value?

–       What are your results?

–       What is your plan?

Taken together, Peter Drucker’s five questions are powerful. Try answering them (and, if curious, read Drucker’s answers to them here) and you will get a clear roadmap right to the heart of what makes a business successful.

If you have 12 minutes more we encourage you to watch also Mark Suster’s (an American entrepreneur, angel investor and investment partner at GRP Partners and also a prominent blogger) TechCrunch interview about… failure. Yes, no one likes to fail but failure is part of the process of being an entrepreneur… Failure is ok. It’s not the same as losing or being a loser. It’s a set back. In fact, great entrepreneurs such as Steve Blank and Richard Branson have made millions from failure.

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In the video Suster explains his “classic, first-time stupid mistakes” and how it uses this knowledge as a warning signal of which teams to avoid funding and to coach first-time founders or university students who want to pursue entrepreneurship.

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The principles of the Lean Startup

Too many startups spend months, even years, perfecting a product without ever showing it to the potential customer. When they finally do it and customers communicate, through their indifference, that they don’t care about the idea, the startup fails.

Using the Lean Startup approach, companies can invert this trend testing their business vision continuously.

The Lean Startup is a theoretical methodology for developing businesses and products first proposed in 2011 by Eric Ries. It claims that every startup is a grand experiment that can shorten their product development cycles by adopting a build-measure-learn feedback loop approach. The first step of the process is figuring out the problem that needs to be solved and then developing a minimum viable product (MVP) to begin the testing and learning as quickly as possible. Once the MVP is established, a startup can work on tuning the engine. This will involve measurement and learning and must include actionable metrics that can demonstrate cause and effect question.

When this process of measuring and learning is done correctly, it will be clear if a company is either moving the drivers of the business model or not. If not, it is a sign that it is time to change the direction and to test a new fundamental hypothesis about the product, strategy and engine of growth. With the Lean Startup, by the time a product is ready to be distributed widely, it will already have established customers, solved real problems and offer detailed specifications for what needs to be built.

The Lean Startup Process

The Lean Startup is transforming how new products are built and launched. It has become an essential for the survival of business.

If you want to know more about it and how to apply it to your startup, don’t miss the in depth article here and the guide below: