The risk of launching new products and starting new firms is known to be extremely high. The lean start-up approach is a way of reducing these risks and enhancing the chances for success by validating the products and services in the market with customers before launching it in full scale. The main point is to develop a minimum viable product that can be tested by potential customers and then pivot the idea if necessary around these customer evaluations. This iterative process goes through a number of stages with the purpose of validating the customers' problems, the suggested solution, and the final business model. In other words, the start-up must first nail the problem together with the customers, then develop the solution and test, and then in the end scale it to a full-grown business model.

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Sprott School of Business

Rasmussen, E.S. (E. S.), & Tanev, S. (2016). Lean start-up: Making the start-up more successful. In Start-Up Creation: The Smart Eco-Efficient Built Environment (pp. 39–56). doi:10.1016/B978-0-08-100546-0.00003-0