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They test, revise, and discard hypotheses, continually gathering customer feedback and rapidly iterating on and reengineering their products.

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Traditionally, a venture’s founders would write a business plan, complete with a five-year forecast, use it to raise money, and then go into “stealth mode” to develop their offerings, all without getting much feedback from the people they intended to sell to.

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This strategy greatly reduces the chances that start-ups will spend a lot of time and money launching products that no one actually will pay for.

Why the Lean Start-Up Changes Everything

Launching a new enterprise—whether it’s a tech start-up, a small business, or an initiative within a large corporation—has always been a hit-or-miss proposition.

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