Fiverr

December 28, 2013 by Leave a Comment

Fiverr

 

Fiverr, is the cheapest of the Outsourcing options.  Fiverr has over 3 000 000 jobs, called ‘gigs.’  There are an amazing range of gigs available.  Many of them are a little crazy such as, writing your name on a piece of rice.  Gigs start at $5 but many have upgrades. While the buyer pays $5, the seller only receives $4, fiverr taking a whopping 20% commission.  The price makes it affordable, but the quality is highly variable.

However, the likelihood of a successful gig with fiverr can be enhanced with the following steps:

  1. Look at the sellers stats and feedback, noting both the percentage positive and the number of votes.FiverrRatings
    The stats come from the buyer feedback.  Most have quite a high rating, so the comments further down the page can be more revealing.
    Level 1 – Sellers are automatically promoted to level one when they have been active on the site for 30 days and completed at least 10 orders while maintaining excellent ratings and a great track record.
    Level 2 – Sellers are automatically promoted to level one when they have made over 50 orders in the past two months while maintaining excellent ratings and a solid track record.
    Top rated sellers are manually chosen by Fiverr editors. Promotion is based on the following criteria: Seniority, volume of sales, extremely high rating, exceptional customer care, and community leadership.
  2. Notice the cancellation ratio.FiverrCancellation
    While the feedback stats may be high, a high cancellation ratio should be cause for concern.  Not all sellers have a cancellation ratio, and a small one is probably not relevant.  However, a high cancellation ratio can mean either that the seller is canceling any problematic orders or that this percentage of people are unhappy enough to demand a refund. If there is a high cancellation ratio then my advice wold be to not buy.
  3. Check out the samples.
    Their portfolio of previous work is your best indicator of whether they are suitable for your job.
    FiverrSamples
  4. Read the gig details carefully.
    For example, make sure that you understand what you are buying and what is an extra.
  5. If you are not sure if they can / will do what you want, then contact the seller.
    The seller does not want an unsuitable job that will lead to negative feedback, so are likely to be honest with you.  A lot of sellers like this as communication helps then too.
  6. Put effort into answering their questions.  Often when you make an order, you will be asked a number of questions about what you want.  The more information you can give, the better able the seller is to provide what you want.
    FiverrRequestInfo
  7. Consider buying two gigs.  I did this when I ordered gigs for a public domain book I published in Kindle format.  At $5 each two still does not cost very much and then if one is not at a level you would want to use, there is still another option.  Below are the two results for my Kindle book cover.
    Montessori2       Montessori1
  8. If you want some changes let the seller know.  The seller does not want negative feedback, so will do what they can to rectify any issues you may have.  So, talk to them and give them a chance to make alterations before leaving negative feedback.
  9. Remember, the seller is only getting $4, do don’t expect that every ‘gig’ you order will be wonderful.  Think of it as a $5 gamble.  If it works out well, great, if it doesn’t there is not much lost.
  10. I would suggest that content creation not be outsourced to Fiverr.  I did try and get some content writers on Fiverr to write articles, that I could use for comprehension exercises, for some practice exam papers that I was writing.  The results were diabolical and I used none of them.

 

In conclusion, buyers like Fiverr because it enables small tasks to be completed cheaply with minimum risk and over time they can find dependable freelancers that they are able to use for repeat work. Sellers are able to build their portfolio, accumulate reviews and  grow their business by offering basic gigs for $5 and providing extras for additional revenue.

I have bought gigs on Fiverr that have been unusable, such as this diagram of a cell, where it is drawn on paper and scanned with the creases of the paper cutting through the diagram.

CellStructure

However, other gigs have been great, such as this book cover I used.

B3

If you are new to outsourcing, fiverr can be a good place to start as it allows you to outsource with minimum risk.  For some jobs, such as transcription of audio, it can be an efficient way to better utilize your time and resources.  However, being the cheapest of the outsourcing methods, for more complicated jobs or to hire more experienced people, then other platforms such as Upwork may better serve your needs.

Resource Link:  Fiverr

Filed Under: Resources - Outsourcing

The Suitcase Entrepreneur by Natalie Sisson

December 19, 2013 by 17 Comments
There is no such thing as easy money and nothing worth doing was ever easy. But, if you’re prepared to work smart and develop a laser-like focus on achieving your ideal lifestyle, then anything is possible.

Natalie Sisson’s book, The Suitcase Entrepreneur is full of inspiration, advice and information on how anyone can build an online business that fits into their lifestyle or desired lifestyle.  While written for the ‘digital nomad,’ it is useful for anyone who would like to build an online business that gives them more freedom in their life.

Natalie Sisson; who is resident in three countries, owns two passports and has three international bank accounts; has spent the last few years travelling the world while establishing her very successful business.  She shares her own experience of travelling to 61 countries on five continents as well as the case studies of others to show that it really is possible to “create freedom in business and adventure in life.”

The book is steeped in reality.  While demonstrating the amazing possibilities that online businesses have, from the outset she states that it takes perseverance, initiative and the meeting of challenge head on.  Further, she accepts that continual travel is neither possible nor desirable for everyone.

The book itself is divided into three acts.  The first is titled “Welcome to the new world of digital nomads.”  This act is challenging from the beginning.  She states that to make a real change that you need to get uncomfortable.  Our comfort zone is attractive but as Natalie points out “if you do what you’ve always done then you’ll get what you’ve always got.”

Then Natalie proceeds to wipe away any excuses.  The right time – there isn’t one.  If you put it off, you are just delaying the living of your ideal life.  Money – all you need is a laptop and less than $100.  Lessons you need to know in order to become an online entrepreneur like finding your “sweet spot” or the need for testing – they are all covered in this act.  The inspiration to begin the “rollercoaster ride” of an entrepreneur – again, found in this book.

Act two is titled, “How to build an online business you can take anywhere.”  While passion for your business and a desire to create freedom in business and adventure in life is great, it needs to be backed up with a plan of action.  This act provides the concrete steps and information that you need to know in order to create an online business.

After looking at why today is the best time to build your business, outlining eight trends that define the future of work, she reminds her audience of the importance of mobile.  Natalie then provides the reader with information needed to build a business – from determining what business to start to Natalie’s six steps of building an online business, to things to consider when setting up a business and tax requirements.  From only five essential tools to run a business, Natalie uses a virtual office set up to provide a wealth of information about useful tools that can be used to make your business more effective.

Reminding her readers of the need to be where our customers are, Natalie gives both the reasons we need to be on Social Media and also tips that we can use to optimise the use of Social Media for our business.

Then after providing some insight on how to build a virtual team it’s on to act three.  While act one and two are valuable for anyone who is running or thinking of running an online business, act three is specifically for the entrepreneur who plans to travel.  Act three is titled, “How on earth does one become a Suitcase Entrepreneur?”

Act three, as with the first two acts is full of useful tips and down to earth advice.  From staying fit and healthy, to advice on visas and how to pack this section is filled with useful information.

In between your blocks of time you’ve carved out you need to leave time to stop, stretch, dance and get some fresh air.  This actually makes you more productive and helps you focus back on what you’re doing.”

So, the freedom to do what you want and achieve your dreams?  Yes, Natalie convinces the reader that with focus, hard work and determination it really is possible.  I would highly recommend this book to anyone with an online business or thinking of starting one.

 

Cover-of-The-Suitcase-Entrpreneur

 

You can purchase a copy from:

Amazon.com

Amazon.co.uk

bookdepository.co.uk

Filed Under: Book Reviews

Making the Leap!

December 8, 2013 by 17 Comments

I have always had the Entrepreneurial spirit, yet have worked a traditional 9:00-5:00 job since graduating from college (more years ago than I want to confess…wink, wink). There is so much noise and distraction in society about needing the ‘security’ of outside employment. Really though how ‘secure’ is working for someone else? At any time the market could shift, a new competitor emerge or reasons for downsizing could pop up and suddenly that job isn’t so secure.

Even familial pressure plays a factor when they ask the questions, “What about health insurance, retirement contribution, or guaranteed paycheck, etc?” Those doubters obviously have no idea that being an Entrepreneur can provide all that and much more!

Unfortunately, the societal noise has led to fear and the decision to hold back on the Entrepreneurial dream for many people and I was once one of those people. The best thing I have ever done for MYSELF was to make that LEAP and started my own online business and podcast.

It was scary and my stomach was in knots, but in life we all can grow by facing our fears. To help in the process I have a quote that has quickly become my personal daily mantra and it is, “What is the worst thing that could happen?” and really what is the worst thing that could happen?

The worst thing in my mind is FAILURE, yet as an adult I should know that is how all of us learn…from our mistakes and failures. Have I had a few failures in my new journey so far…YES! Am I still alive, healthy and have my supporting family by my side…YES again!! In hindsight, the failures I have experienced have been an essential part of my journey and growth and I wouldn’t change a thing.

Becoming an Entrepreneur can be stressful if you attempt it alone. The biggest element that has been helpful to keep me sane during this journey is Support. I have found such inspiration, help and encouragement by being a member of a wonderful Mastermind group, Fire Nation Elite, which is comprised of entrepreneurs of all kinds. Jim Rohn once said, “You are the average of the 5 people that you spend the most time with.” Choose those five people well and be strategic.

If you want to become a successful Entrepreneur (online or otherwise) then surround yourself with successful entrepreneurs. Together as a group you can support, encourage and learn from one another. Thankfully by surrounding myself with like minded people (now friends), I KNOW that success is in my future. I will not give up and thankfully my support wouldn’t let me give up either!

The best thing about becoming a entrepreneur is a realistic opportunity for my long term goals:

  1. Freedom to run a business aligned with my goals, values and passions.

  2. More quality time with my children (they are going to be out of the house before I know it).

  3. Ability to travel more with my family as I will no longer be locationally dependent.

  4. Living a life of purpose and having more time to volunteer and help others.

Don’t be afraid and just do it! The rewards will always outweigh any fears and you will be so grateful of your decision to become an Entrepreneur.

This guest post was written by Celest Horton, Founder of How to Pay for College HQ

Celest Horton

Founder of How to Pay for College HQ

Facebook: http://www.facebook.com/howtopayforcollegehq
Google+: https://plus.google.com/+celesthorton
Twitter: @celesthorton
Podcast on iTunes
Podcast on Stitcher Radio

Filed Under: Entrepreneur Speaks

Building an Audience from Nothing

November 26, 2013 by 36 Comments

BuildingYourAudience

I was thinking the other day about the difficulties we experience when we’re trying to start our own business, and one of those difficulties is building an audience from nothing.

As entrepreneurs, we approach roadblocks, experience detours and even hit dead ends. These things not only ensure we’re as strong as we can possibly be; they also ensure that our business is the best it can be.

Lucky for us, there are a lot of guides and resources available that can help us avoid some of these things, or that can help us move past them quicker than normal.

I hope this post serves as one of those resources for you when it comes to building an audience from nothing.

When you’re building an audience from nothing, a roadblock might represent defining your avatar: you can’t proceed without one.

When you’re building an audience from nothing, a detour might represent your journey to finding where your audience is and how you can reach them.

When you’re building an audience from nothing, a dead end might represent the realization that your content, products or services don’t solve the pain point your audience has.

I have some good news for you: just like when you’re driving in a car, there is always the opportunity to correct course – to see that roadblock up ahead and turn before you’re stuck for an hour; to know what those alternate routes are, or what signs to look for when you have to take a detour; to know how easy it is to make a u turn at the dead end and find your way again.

Here are some of the steps you can take today to start building your audience and avoid the roadblocks, detours and dead ends mentioned above.

Defining Your Avatar

Defining your avatar is what helps create the foundation for your audience to grow. If you are not talking to a very specific person with wants, desires and needs, then you run the risk of talking to no one.

Before you start trying to build your audience, be sure you know who that audience is made up of. Not generally speaking – be specific. It’s a person, they have a name, they are a certain age, and they have hobbies and interests.

Really define them.

Finding (and Reaching) Your Target Audience

In order to find (and reach) your target audience, you must have a niche.

Let’s say I’m going to start a blog for “people who want to lose weight”. There are millions upon millions of “people who want to lose weight”, right? Therefore, my blog will do very well.  And because there are so many people in this category, it’ll be really easy to find them.

Wrong.

How do you find (and reach) “people who want to lose weight”? What makes finding and reaching these people so difficult is the fact that they could be a 16 year-old girl, a 45 year-old man, or a 80 year-old couple. And they could listen to the radio, not have Internet access, or never watch TV. Doesn’t sound like a very easy market to target, does it? That’s because you’re not talking to a specific person.

But what if your blog was still for people who want to lose weight, but it was focused on young women around age 30 who are pregnant (or who plan to be pregnant) and want to be sure they are staying healthy during their pregnancy and are able to lose the weight they gained during their pregnancy quickly and safely after they give birth?

Wow, suddenly it became a lot easier to find and reach my target audience! I can easily target these women by joining niche groups online that support pregnant women; or niche groups online that support female fitness for women in their 30’s.

You’re not going to be speaking to everyone in these groups. Of course there will be a certain percentage of women in the pregnant online community who don’t need help staying healthy during their pregnancy or with losing the weight afterwards. Likewise, not everyone in the fitness group for women in their 30’s is going to be pregnant.

That’s the point, though. You don’t want to talk to everyone – you want to talk to someone. You will resonate with people in those niche groups, and you will be talking directly to your target audience.

Another great way to reach your target audience is to find blogs or online resources that women in their 30’s who are pregnant frequent.

What about a “mommy blog”, or a website like Babies R Us? Guest posting opportunities or appearances on podcasts are also a great way to get your name out there and reach an audience who will resonate with your content, but who might not know about your business yet.

Creating Content, Products and Services for Your Audience

Creating the right type of content for your audience starts with knowing who your avatar is. What types of things does your avatar want to know about? What can you provide them with that will be of value to them that they can’t find anywhere else?

Creating the right type of content isn’t necessarily always something that is totally obvious just as soon as you define your avatar, though. What comes next is testing your content to see what it is your audience likes and what they don’t like.

A great way to test your content is to keep track of analytics, like page visits to one blog post vs. another, or social engagement when you post about a particular topic. Just be sure you’re setting your criteria prior to testing and analyzing your numbers.

An example of this might be if you’re testing content by the number of page visits to one blog post vs. another, then be sure the posts were published on the same day of the week, at the same time, and that you marketed them in the same ways (via Facebook, Twitter, etc.) This will eliminate any variables.

Creating the right products and services for your audience comes through surveys and simply listening to them. What are they asking you for? What is their biggest pain point?

Once you hear what they’re looking for and what their biggest pain point is, you need to determine what product or service you can create to fill that need, or to solve that pain for them.

An example might be something like this:

You write a blog post about the types of exercises you can do after giving birth to help get back into shape fast. Your readers love it, and they leave comments letting you know how helpful it was.

There are also a couple of comments from women who loved the content, but they also say they wish they had a visual, step-by-step card that they could carry around with them with the exercises on it that you talk about.

Ding, ding, ding! What are you waiting for? Go create that card and have it as a free, downloadable gift for those who sign up for your email list!

Okay, so you might be thinking to yourself right now, “Wait a minute – give it away for free?”

The best way to grow your library of products and services is to listen to what your audience wants and needs, and then give them something of value that will help them for free.

When you’re building an audience from nothing, you have to provide value first. When you do this, you will notice that your audience likes it when you help them. And what happens when your audience likes you? They keep coming back to you for more information. They start to view you as an authority in your niche. They start to like you… They even start to trust you.

Building all of these things: a loyal following, authority, an audience who feels like they know, like and trust you – this is when social proof and word of mouth start a snowball effect for you. Suddenly, you’re not stressed out about where and how you’re going to find your audience – you audience is actually going to start finding you.

It’s when you have a loyal following who knows, likes and trusts you that you can start offering them products and services that are so valuable to them that they’ll pay you for them.

As entrepreneurs, we approach roadblocks, experience detours and even hit dead ends. The steps I’ve laid out above are meant to help you grow your audience from nothing and hopefully avoid running into the roadblocks, detours and dead ends in the process.

This isn’t say it won’t be difficult: building an audience from nothing isn’t easy. If it were, everyone would do it.

 

This guest post was written by Kate Erickson, Content & Community Manager at Entrepreneur on Fire

 

Kate Erickson

Content Creator and Community Manager for EntrepreneurOnFire.

Ready to connect? Twitter | Facebook | Pinterest |Google

Filed Under: Entrepreneur Speaks

The Reward Of Risk

November 20, 2013 by 27 Comments

SuccessFailQuote

 

Every failure leads to a greater success. 

It is this very statement that I live by. The most successful entrepreneurs accept failure as an integral part of the journey. It is the chance of failure that makes the journey so fulfilling.
Your drive, your passion, and your motivation are not driven by the worry of getting fired or laid off. They are about the purity of creation, the dedication to your vision, and the bumps and bruises you are proud to own when things come together.

The purity of creation is the wholeness you feel when you invest all of yourself into something you truly believe in. You are creating from the deepest part of you. It is the raw, unfiltered, “you” coming out into the world. We are the most pure at our core. Being an entrepreneur allows that purity to be seen by others. It is this beacon of purity that other entrepreneurs are drawn to. They see and feel it radiating from you.
It shines.

The non-trepreneurs can’t see the light you are shining. It is fuzzy to them. It is “weird”, and they don’t get it. They need you here, with them, staying on the beaten path, hoping they’ll have you as a comrade for eternity. They are not bad people. They are simply following others along another path – one that you have grown tired of. And one that ends where it starts, every day. In the same place, at the same time.

The dedication to your vision is the unwavering focus and determination you have when you are materializing your imagination. It is the blank canvas on which you paint your future.

When you speak of your vision to others, you will usually hear one of three types of responses:

1. Stay where it’s safe and comfortable.
2. What?
3. I’m so excited for you!

For fun, list every person you’ve ever shared your ideas with and classify them. Put the numbers 1, 2 or 3 next to their name, indicating the type of response they gave you
Cross out all the ones, and put a question mark next to the twos.

Now look at your twos. Are there people in there you don’t believe will ever become a three?  If so, cross out their name(s).

The people left over are those you want to keep in your circle of influence. These are the ones that support your vision, and get excited to see you excited.
You might even want to add a fourth type: people with whom you want to share your ideas and spend more time.

You will get your share of bumps and bruises along your entrepreneurial journey. It has to be this way. Every bump is a stepping stone. Every bruise, a lesson. Every time you bang into an obstacle, it comes with the reward of a lesson. The journey can take months or years, but the rewards last forever.

There is no growth in a flawless life. 

 

 

This guest post was written by Paul Colaianni, mindful advisor at The Overwhelmed Brain

Paul Colaianni

Mindful Advisor at The Overwhelmed Brain
The Overwhelmed Brain Personal Growth Podcast and Blog

 

email: paul@theoverwhelmedbrain.com
Filed Under: Entrepreneur Speaks

Become a Champion Networker with this 1 Magical Question

November 12, 2013 by 31 Comments

The power of belly to belly networking is incredible for entrepreneurs and should be part of every small business marketing strategy.

The ability to connect in person can strengthen a business relationship and will always create amazing opportunities.

Too many entrepreneurs hide behind avatars today and consider that networking.  While social media is amazing and can make a networking event even better, business owners that want to succeed need to get out and meet belly-to-belly.

To network effectively I’ve got a proven 3-step process that works even for introverts.

First though here’s the most important part of networking that seems so simple, yet is often overlooked.

When you’re at a networking event and meeting people, keep your business cards in your pocket. Do not walk up to people with the intention of exchanging business cards. How many people actually do something with those cards anyway?

Give someone new you meet a 110% of your attention.  Don’t look at whom you may be speaking with next, give the person in front of you all your attention. Ask them this magic networking question:

“I love connecting people.  Can you share for me who’s a good referral for your business?”

You love getting referrals for your business, don’t you? Everybody loves a great referral and by asking this you’ll learn so much about that individual and make an impactful impression.

Remember it’s not a race to collect the most business cards; it’s about forming meaningful beneficial relationships that can create amazing unknown opportunities in the future.
 

Here’s the 3 step process to maximize networking opportunities:

Before the Networking Event

Before attending a networking event learn who’s attending the event and connect with them socially, via email and calling when possible.  Most events today have a list of the individuals who are attending an event and their social handles.  If they don’t go to Twitter and search the events # (Hashtag) to see who’s talking about it.

Connecting with individuals before hand is rarely done, but if you’re an introvert who’s uncomfortable at new events this is gold.

When you reach out socially beforehand, when you’re at the actual networking event these people will be looking for you. You don’t have to worry about walking around because if you use a recent photo as your avatar, people will be approaching you from your communication socially.

When connecting you can use the # (Hashtag) for the event and simply mention the individual you want to meet.  Start a conversation online around the event and you’ve now made networking a breeze.

 

At the Event

Meet as many new people as possible at networking events. Sometimes we fall into the trap of mingling with the few people we know, but always try to meet new faces (hopefully ones you’ve met online beforehand).

Take a lot of pictures and share them socially using the # for the event and @ tagging people in the pictures. They’ll in-turn share it with their network and inadvertently many will begin to follow you.

Other than sharing socially about the event and pictures, keep your phone off. You’re there to network, so network!

 

After the Event

The real party is the after-party!

The real fun of networking starts after the event. This is when you want to reach out to everyone you met with a thank you email. Connect with them on all social channels and if you can make that perfect introduction for them, now’s the time to do it.

Thank the host with a call or email and consider writing about the event so others can learn about it.

Lastly make sure to use some type of system to stay in front of people.  Reach out every 60-90 days to your network to keep the relationship fresh. Ask if anything has changed in their business and share something that you believe can add value.  This keeps you top of mind and opportunities will begin to flourish.

This is a little cheat sheet below with the steps to help you network like a champion at your next event.

Network like a Champion

Now it’s your turn! What’s your favorite part of networking?

Wishing Entrepreneurial Successes to all.

This guest post was written by Michael Kawula, Founder at Self Employed King.
 

Self Employed King helps small business owners around the country work the Core 16 Strategies that are Guaranteed to Grow a business in 12 months. These marketing strategies helped Mike build a $20,000 a week local cleaning business and also build an annual $3 Million+ Online Business. Connect to learn more about the Core 16.

email: Mike@SelfEmployedKing.com

 

 

Filed Under: Entrepreneur Speaks

Why you should write a book

November 5, 2013 by 9 Comments

WriteBook

 

I’m not talking about an ebook give-away – though they are certainly useful.  I am talking about an actual published book.  I know when starting a business time is normally at a premium, as there is so much to do when starting and you are often still working a full-time job as well.  So why is writing a book, along with all of your other time commitments important?

I am going to list five reasons why the entrepreneur or business owner should write a book.

1.  It expands your market.
Amazon is the largest paid search engine in the world.  Once you are on Amazon and other book websites, your name is accessible to a very large number of people.  Content is the new form of marketing and a book is the ultimate content item.  It introduces people to your other services and if they really like your book, then they will seek out your other products and services too.

2.  It raises your profile.  
Writing a book gives you authority in your area of expertise.  By writing a book, it introduces you to your market as an expert.  That expert status then can opens many opportunities (see point 3 below).  A book really is the best business card you can have.

3.  It opens opportunities.
When people want someone for interviews, to speak, consult or coach.  They will generally look at those who have published in the area.

4.  It’s a source of passive income.
Don’t get me wrong, there are very few for whom a book makes them a living on its own.  However, it can contribute significantly to your income, and the great thing is that once it is written and distribution channels set up, the income is largely passive and can continue to come in for many years.

5.  Its affordable and achievable.
While writing a book is difficult.  My first book took me a long time and lots of editing before it was ready to be published.  However, once you have your final pdf file, the publication of that file is now easy.  Platforms, such as createspace enable publishers to publish their book with absolutely no set up cost and no need for stock inventory.  Publishing a book has certainly never been easier.

 

So why not start your book today, and take your business to the next level?

 

Filed Under: Entrepreneur Speaks Tagged With: , ,

The Lean Start Up by Eric Ries

November 3, 2013 by 19 Comments
Every so often a business book comes along that changes how we think about innovation and entrepreneurship… The Lean Startup has the chops to join this exalted company. – Financial Times

Since the Lean Start Up was written in 2011, it has revolutionized the approach of entrepreneurs to start-ups.  The Lean Start Up methods are now being taught in some  Business Schools.  Some of the terms coined by Ries such as pivot, minimally viable product, and continuous innovation are now enmeshed in entrepreneurial circles.

The book, defines start-ups as “an organization dedicated to creating something new under conditions of extreme uncertainty.” Thus, he places start-ups in the realm of large corporations as well as small businesses.

The lean start-up model is based on the principles of Toyota including using small batch sizes, just-in-time production, inventory control and faster cycle times.

Startups often build things that no-one wants.  It doesn’t matter how quickly or brilliantly or cheaply we build something, if no-one wants it.  Ries wrote that the goal of a startup “is to figure out the right thing to build – the thing that customers want and will pay for as quickly as possible”.

Startups are more than the product, but an institution that requires management.  Thus, entrepreneurship requires a managerial discipline.  Ries, discusses in detail the role of the manager in a startup, to enable an environment in which experimentation and the lean startup principles can flourish.

The idea is to make a minimum viable product and then start testing with real customers.  Ries suggests that anything added above that which is required to make a minimum viable product that can be shown and tested with early adopters is waste.

Startups have what Ries terms an “engine of growth.”  Any changes to the product should drive the engine of growth.  The lean start up model uses a measure of progress called validated learning, where any change requires the formulation and then testing of an hypothesis. The results of the constant testing can then guide the entrepreneur as to whether it is appropriate to continue or pivot.  Ries refers to the as the build-measure-learn feedback loop.  The measurement must include actionable metrics based on the hypothesis and not vanity metrics which can be misleading.  In this way, waste of time producing items or features not wanted by the market can be avoided. He explains that this often involves one or more pivots of different types.

The lean startup model views problems and defects as an opportunity for learning.  Its method of root cause analysis is the five whys – simply asking why five  times.  This very simple technique enables the root cause to be identified, which is often hidden behind more obvious symptoms. Then all five levels need to be addressed.

However, the lean startup model is more than a set of techniques to be ticked off from a list.  It is a model that should be adapted to the business in question.

Pros: Many businesses have in the past spent months or even years in building their product before it is seen by a single customer.  Then, often, after months or even years of development, entrepreneurs learn the hard way that customers do not need or want either the product itself or most of the product’s features.  The lean start-up model reduces this waste.

Cons:  A lot of his book talks about teams and management, which makes the book appear less useful for the small startup with only one or two people.  The minimum viable product needs to be decided with care.  Some have used the Lean Startup model as an excuse to rush incomplete or mistake ridden products to market.  This can have consequences for how you are regarded in the market that can be difficult or impossible to overturn.  Finally the pace of innovation and testing can increase the workload beyond the point that it is useful.  In the book Ries gave the example of SnapTax, a part of Inuit.  SnapTax tested over 500 innovations during the two-and-a-half-month tax period, up to seventy in a week, or 14 a day.

Conclusion:  A longer book than necessary for the information that it contains.  It contains a lot of useful concepts and techniques such as minimum viable product and the five whys.  Interacting with customers from early on in development is important.  Understanding how to predict and measure is useful and being given permission to pivot is, well pivotal.  It deserves its place in the classics of business but must be taken with a good dose of common sense.

 

You can purchase a copy from:

Amazon.com

Amazon.co.uk

bookdepository.co.uk

audible

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