The article Why the Lean Start-Up Changes Everything states an innovative way for businesses which just start up to make an efficient plan. It breaks the traditional idea of spending weeks on building a perfect plan before the business starts functioning. It’s main purpose is to avoid making products that really meets customers’ desire. Before the actual production start, business builds a model and asks for potential customers’ opinions. Then it assemble some samples, ask for people’s opinion again, and modify its products by people’s feedback.
Compare to the traditional planning method, lean start-up is more realistic, instead of make up targets and forecasts, it encourages businesses to gather customers’ feedbacks, keep improving the products ,and adapt their original ideas to customers demand.
However, Lean Start-Up methodology only provides a very broad idea about the business itself, it doesn’t involve any specific statistics about the future profit trends and cost forecasts. It will probably be hard for the business to attract investors, as the main reason why investors invest is to get money. If they cannot get information about the company’s future financial performance, they may not be interested in this investment.
In conclusion, Lean Start-Up provide businesses an opportunity to build a plan with lower failure rate. But businesses still need to do extra evaluation for future profits and costs.