The Problem and Common Mistakes
Explore the common causes behind frequent product failures, including typical mistakes like premature scaling and cognitive biases. Learn how Lean Startup principles address these issues to improve product success and accelerate market entry by focusing on customer value.
We'll cover the following...
The problem
72% of all new products do not meet their revenue goals.
Most new products (and new companies) fail. The odds are against them. About 75% of new businesses fail, and between 40% and 90% of new products do not achieve significant adoption in the market.
On a smaller scale, the problem is the same. Most ideas do not increase value for customers or businesses. Among companies such as Microsoft, Amazon, or Netflix, the failure rate is between 50% and 70%.
There is so much room for improving those staggering statistics and even more room to improve the odds of creating successful products. But even today, the problem is that many companies make serious mistakes when building products. The solution to those mistakes is to adopt the principles and practices of Lean Startup.
Five Key Mistakes
There are five key mistakes that cause huge delays in time to market and frustration. It can also waste money and human potential. And worst of all, these mistakes can support creating products that nobody wants. The five mistakes are listed below. Each mistake will be discussed in detail within the next few lessons:
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Putting the Cart Before the Horse
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Build – Build – Build
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Cognitive Biases
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Measuring the Wrong Things
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Wishful Thinking
Lean Startup is the key to avoiding these mistakes and offers incredible customer experiences as quickly as possible while involving everyone in the organization.