Subject: EDE(22032) Academic Year: 2024-25

Course: CO (6I) Semester: Sixth

A STUDY ON :-

LEAN STARTUP EXPERIMENT

MICRO PROJECT REPORT
By

Roll Name of student Enrollment no. Seat No.

No.

43 Devansh Deshmukh 2209350168

Under the guidance of

Ms Priya Suryarao
Third year of Diploma program in Engineering and Technology of
Maharashtra State board of Technical Education, Mumbai.
AT
SHIYAJIRAO S. JONDHLE POLYTECHNIC ASANGAON
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION

This is Certify that Mr. Devansh Deshmukh , Roll no. 43 in sixth semester of
Computer Engineering Diploma program in Engineering and Technology At 0935
SHIVAJIRAO S. JONDHLE POLYTECHNIC has completed the Micro Project
Satisfactorily in subject Enterprenurship Development(22032) in the academic
year 2024-25 as per the MSBTE Prescribed curriculum of ‘I’ Scheme .

Place : Asangaon Date : / / 2025

Enrollment no: 2209350168 Seat no.

Subject Teacher Head of department Principle

Seal of institute
 Index

Sr. no. Topic

1. Introduction

2. The Build-Measure-Learn Feedback

Loop

3. Experimentation Techniques

4. Case Studies: Lean Startup in Action

5. Measuring Success: Key Metrics & KPIs

6. Common Pitfalls & How to Avoid Them

7. Integrating Lean Startup into

Entrepreneurship Programs

8. Conclusion

9. References
 1. Introduction

This document provides a comprehensive overview of the Lean Startup

methodology, a customer-centric approach to entrepreneurship that
emphasizes validated learning and iterative product development. We
will explore the core principles of the Lean Startup, including the Build-
Measure-Learn feedback loop, experimentation techniques, and key
metrics for measuring success. Furthermore, we will analyze case
studies of companies that have successfully implemented Lean Startup
principles and provide guidance on integrating this methodology into
entrepreneurship programs. Finally, we will discuss common pitfalls to
avoid and examine emerging trends in Lean Entrepreneurship.
The Lean Startup methodology, developed by Eric Ries, is an
entrepreneurial approach that emphasizes rapid experimentation,
validated learning, and agile product development. Instead of building a
product and hoping customers will come, the Lean Startup method
begins with building a Minimum Viable Product (MVP), testing it in
the real world, learning from feedback, and iterating until a successful
product-market fit is achieved.
 2. The Build-Measure-Lean Feedback Loop

The Build-Measure-Learn feedback loop is the engine of the Lean Startup

methodology. It is an iterative process designed to help startups quickly validate
their assumptions and build products that customers actually want. The loop
consists of three stages:

• Build: This stage involves creating a Minimum Viable Product (MVP),

which is a version of the product with just enough features to attract early-
adopter customers and validate a product idea early in the product
development cycle. There are several types of MVPs:
➢ Concierge MVP: Manually providing the service to a small group of customers.
➢ Wizard of Oz MVP: Creating the illusion of a fully functional product without
actually building the backend.
➢ Piecemeal MVP: Assembling existing tools and services to deliver the product.

• Measure: This stage involves collecting data on how customers are using
the MVP. This data can be qualitative (e.g., customer interviews) or
quantitative (e.g., website analytics). The goal is to gather validated
learning about the product and its customers.

• Learn: This stage involves analyzing the data collected in the Measure
stage and using it to make decisions about the product. This may involve
pivoting (changing the product's strategy) or persevering (continuing with
the current strategy).

For example, Dropbox's video MVP, which demonstrated the functionality of the
product, garnered 75,000 signups overnight, highlighting the power of a well-
executed MVP.
 3. Experimentation Technique

Experimentation is crucial for validating assumptions and gathering validated

learning in the Lean Startup methodology. Effective experimentation involves
several techniques:

1. Hypothesis Formulation: Clearly define assumptions to test. For example,

"Customers will pay $X for feature Y."

2. A/B Testing: Compare two versions of a product or feature to see which

performs better. For example, testing different landing page designs to
optimize conversion rates.

3. Customer Interviews: Conduct structured interviews to uncover unmet

needs and identify pain points.

4. Surveys and Questionnaires: Design effective surveys to gather

quantitative data on customer preferences and behavior.

An example of successful experimentation is Zappos' MVP, which involved

manually fulfilling orders to validate demand for online shoe sales. This allowed
them to test their core hypothesis without investing in infrastructure.
 4. Case Studies: Lean Startup in Action

• Airbnb

Airbnb started with a simple website to validate market demand for short-
term rentals, iterating based on feedback. Initially, they focused on
conferences in San Francisco, targeting attendees who needed
accommodation.

• WealthFront

Wealthfront, an automated investment service, used an MVP to test

different pricing models and user interfaces, gathering data to optimize
their service and attract a broader customer base.

• Buffer

Buffer, a social media management tool, validated product-market fit

through a landing page with pricing options, allowing them to gauge
customer interest before building the full product.

• IMVU

IMVU, a virtual world, initially focused on rapid iteration based on user

behavior data, continuously adapting the platform to meet user preferences
and engagement patterns.
 5. Measuring Success: Key Metrics and KPIs

Measuring the right metrics is crucial for understanding the success of a Lean
Startup. It's essential to focus on actionable metrics that drive decisions and
reflect real customer behavior, rather than vanity metrics that look good but don't
provide meaningful insights.

• Cohort Analysis: Tracking user behavior over time to identify trends and
understand customer lifetime value.
• Funnel Analysis: Mapping the user journey to identify drop-off points and
optimize conversion rates.

Key Performance Indicators (KPIs) include:

• Customer Acquisition Cost (CAC): The cost of acquiring a new

customer.
• Customer Lifetime Value (CLTV): The predicted revenue a customer
will generate during their relationship with the company.
• Churn Rate: The rate at which customers stop doing business with the
company.
• Monthly Recurring Revenue (MRR): The predictable revenue that a
company expects to receive each month.
 6. Common Pitfalls & How to Avoid Them

Implementing the Lean Startup methodology is not without its challenges.

Common pitfalls include:

• Confirmation Bias: Seeking data that confirms existing beliefs while

ignoring contradictory evidence. To avoid this, actively seek out dissenting
opinions and be open to changing your assumptions.

• Analysis Paralysis: Overanalyzing data and delaying decision-making. To

avoid this, set deadlines for experimentation and make decisions based on
the available data, even if it's incomplete.

• Building the Wrong MVP: Focusing on features instead of the core value
proposition and neglecting customer needs. To avoid this, start with a clear
understanding of the problem you're solving and focus on building an MVP
that delivers that core value.

• Ignoring Customer Feedback: Failing to iterate based on validated

learning. To avoid this, establish a system for collecting and analyzing
customer feedback and use it to drive product development decisions.

• Metrics that matter: Focusing on engagement (time on page) over revenue

generation. To avoid this, make sure to priortize metrics like MRR, CLTV
and CAC.
 7. Integrationg Lean Startup into Entrepreneurship
Programs

To foster a culture of innovation and entrepreneurship, Lean Startup principles

can be effectively integrated into entrepreneurship programs through:

• Curriculum Design: Incorporating Lean Startup principles into existing

courses, workshops, and bootcamps.
• Mentorship: Pairing students with experienced entrepreneurs who can
provide guidance on experimentation and validation.
• Funding: Providing seed funding for MVP development to incentivize
experimentation and iteration.
• Resources: Providing access to tools and platforms for A/B testing,
customer surveys, and data analytics.

Stanford's Lean LaunchPad course is a great example of a program that

successfully integrates Lean Startup principles, providing students with a hands-
on experience in building and validating their startup ideas.
 8. Conclusion: The Feature of Lean
Entrepreneurship

The Lean Startup methodology offers a powerful framework for entrepreneurs

to build successful businesses by emphasizing experimentation, validated
learning, and customer-centricity. As technology evolves, the future of Lean
Entrepreneurship will likely be shaped by emerging trends such as:

• AI-Powered Experimentation: Using artificial intelligence to automate

and optimize experimentation processes.
• Personalized Customer Experiences: Tailoring products and services to
meet the unique needs of individual customers.
• Predictive Analytics: Using data to anticipate customer behavior and make
more informed decisions.

The role of the entrepreneur is evolving from a visionary to a data-driven

experimenter who is agile and adaptable, constantly learning and iterating
based on customer feedback. Continuous learning, iteration, and adaptation
will be the key to success in the ever-changing landscape of entrepreneurship.
 9. References

Eric Ries, The Lean Startup: How Today's Entrepreneurs Use Continuous
Innovation to Create Radically Successful Businesses (2011)
➢ [Link] – Website Builder
➢ [Link]/forms – Survey Tool
➢ [Link] – Website Analytics
➢ StartupNation – “Top MVP Strategies”