Companies that pursue a theory-driven approach to evaluating entrepreneurial chance are called "lean startups." Entrepreneurs in these startups interpret their vision into falsifiable business model hypotheses, then examine the theories using a string of "minimum viable products," each of which signifies the lowest set of features/actions needed to rigorously validate a notion.
Predicated on evaluation feedback, entrepreneurs must then decide whether to stick with their business model, "pivot" by shifting some model components, or discontinue with the startup. This note illustrate, step by step, the way to follow the theory-driven strategy when evaluating entrepreneurial opportunity; clarifies the way cognitive biases that otherwise can promote poor decisions are alleviated by the approach; and considers states that are best suited for lean startup approaches.
PUBLICATION DATE: December 13, 2011 PRODUCT #: 812095-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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