The phenomenon of “lean” start ups is one of the signs of our economic times. With banks and investors keeping their pocketbooks closed tight, the only way to start a business is often to do so without a lot a capital. This set up presents its own set of risks, but many business owners have nonetheless found success with this nontraditional model can be a road to success. Here are a few things you have to consider when planning your own lean start up.
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Plan only what you need to.
Unlike most business plans, yours will likely be seen only by you and a handful of other people. You don’t need to impress a bank or a group of investors. It will probably be changed and revised several times, often at the last minute in response to changes in your market. So don’t bother with fancy editing or redundant features such as an executive summary. You know who you are! Instead, focus on the important stuff, like how you are going to get a business off the ground with little income.
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Grow slowly.
Many business owners see an opportunity for growth as their big chance and jump on it. However, this requires yet more money. Don’t grow until you have completed funded both your current operations and your planned expansion. Lean expansion is a worse idea than a lean start up because you have a lot more to lose.
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Test and study results.
You have no room for error, so you must constantly be assessing what is working for you and what simply isn’t. Then, you must duplicate what you are doing right and cut way back on the rest. If one product is working, think about how you can expand upon it and how you can subtly shift your brand to be more in line with this element. Business owners will a generous supply of capital can afford to wait and see, but that’s not you.
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Change your long term direction
to meet your short term results—not the other way around. When something is working in the short term and it doesn’t compromise your brand or any other aspect of your business, it is essential that you keep doing it. If it doesn’t fit into your long term plan, it may be time to re-evaluate your long term plan. It’s important to think well into the future, but not at the expense of today. Remember that every day leading up to that abstract concept of the future will determine exactly what that future looks like.
A lean start up may be the most significant challenge of your life, but it could also be your great success story. Just remember to have a brand and a logo design that represent your company and then to aggressively market them. If you are flexible and a little bit of a visionary, there is no reason that your lean start up won’t become the solid, successful, profit-growing business that you need for it to be.
