Lean Startup methodology

All entrepreneurs must attain the key characteristic of execution to make any business become a reality. Without execution, an entrepreneur has just an idea that will never become a running business. In order to execute, entrepreneurs create a business plan. A business plan is a written document that outlines and addresses every aspect of the new business (Barringer 1). Writing a detailed business plan is a beneficial tool for most entrepreneurs. Benefits of a business plan can be internal and external. Internally, a business plan can benefit a venture by acting as an organized path to help focus on the initial ideas, setting goals to eventually be achieved, calculating educated guesses of business projections/profits, and overall acting as a planning tool to guide a business to success. Externally, a business plan can benefit a venture by proving to potential investors that the business has a timeline and plan to achieve success. Outsiders will be able to obtain a full understanding of what the business is trying to accomplish. While creating a business plan is beneficial, some critics argue otherwise. Leigh Richards argues that businesses get “paralyzed by analytics.” This means that businesses get way to caught up in the effort to precisely estimate the projections/profits (http://smallbusiness.chron.com/disadvantages-business-planning-2541.html). In addition, business plans tend to be forgotten about and never fully implemented. To avoid this, businesses should set detailed goals in the business plan and come back to them regularly. While business plans tend to follow a traditional structure, the lean startup methodology can be an alternative.

The lean startup methodology focuses on business model validation, opportunity identification and feasibility and business plan development. The business model validation is a critic by personnel like investors, customers, and employees. Business model validation was essentially what we completed in class (week two)