The Lean Startup is a con

🌈 Abstract

The article discusses the impact of the "Lean Startup" methodology on the business landscape, particularly the misconceptions and unintended consequences it has created for aspiring entrepreneurs. It highlights the importance of relationship-building over just data-driven decision making, and argues that successful startups are often built on strong customer and stakeholder relationships rather than just technical competence.

🙋 Q&A

[01] The Greatest Trick Eric Reiss Ever Pulled

1. What was the "greatest trick" that Eric Reiss pulled, according to the author? The author states that the greatest trick Eric Reiss ever pulled was to convince a generation of aspiring entrepreneurs that they had all the tools they needed to be the next Mark Zuckerberg, even though the Lean Startup methodology is more about customer relationships than just technical execution.

2. What are the author's views on the Lean Startup methodology? The author acknowledges that the Lean Startup methodology has merits in terms of reducing corporate waste and focusing on customer feedback. However, the author argues that it has also romanticized the idea of the "bedroom coder side hustle" and sidelined the importance of relationship-building.

[02] The Irony of the Lean Startup

1. What is the irony of the Lean Startup, according to the author? The author states that the irony is that the Lean Startup is fundamentally about customer relationships and using customer needs to drive product development, but the focus on minimalism and data-gathering strategies has led to a misunderstanding that all you need is a simple MVP and iteration.

2. How has this misunderstanding manifested in practice, according to the author? The author provides examples of entrepreneurs who believe they just need to build an MVP and invite feedback, without actually talking to potential customers beforehand. This "build it and they will come" mentality reduces users to just data points rather than engaging with them directly.

[03] The Importance of Relationship-Building

1. What is the author's key argument about the importance of relationship-building for startup success? The author argues that successful startups are primarily founded on relationship-building - with customers, employees, investors, and other stakeholders. The author provides examples of startups that succeeded despite technical/methodological shortcomings, due to strong relationships.

2. How does the author contrast relationship-building with the "fake it till you make it" attitude encouraged by the Lean Startup? The author criticizes the "fake it till you make it" attitude encouraged by the Lean Startup, arguing that it sets up aspiring entrepreneurs for failure by encouraging them to jump in without the necessary skills or market research. This has had a substantial mental health impact on founders.

[04] The Author's Experiences with Startups

1. What are some of the author's experiences working with startups, both successful and unsuccessful? The author recounts working with a social media startup that was overly focused on meetings rather than development, a prop-tech startup that failed to build relationships with rental agents, and their own current startup that is struggling to find funding despite strong unit economics.

2. What common thread does the author identify across these experiences? The author states that across both successful and unsuccessful startups, there is zero correlation between the technical/methodological competence of the founders and the ultimate outcome. Instead, the key factor seems to be the founders' ability to build strong relationships with customers, employees, investors, and other stakeholders.