Lean Startup Explained | Build Measure Learn Cycle | Engine of Growth

Lean Startup is a methodology that will help you to validate your assumption and let your project grow.

Lean Startup is a methodology in which the main goal of the company is to find out what customers want, not just what they say they want.

The Lean Startup Methodology was developed by Eric Ries and has been used by many companies such as Google, Twitter and Facebook.

The method consists in getting feedback from customers early on in order to understand their needs better, it also lets you develop.

▶ Text and Concept by Kamil

▶ Chapters

0:00 – Intro
0:40 – Startup Definition
2:32 – Build Measure Learn Cycle
6:19 – The Engine of Growth

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✏️ Here is the transcript of the video

Many of us have had or have a great idea that can revolutionize a certain sphere of life or an industry

So how to approach the implementation of these ideas to achieve success? The answer is LEAN STARTUP

Unfortunately, most of us will never implement these ideas. and they will be buried in the graveyard of ideas. The keyword is implementation. Nowadays, we strongly re-evaluate ideas and underestimate their execution.

▶ What exactly is a Startup

A startup is a human institution created to build new products or services in conditions of extreme uncertainty.

A key aspect of the definition is under conditions of extreme uncertainty.

This means that it is not possible to plan known from well-established companies that can rely on the past.

Nothing is certain in a startup, so the approach to the implementation of such projects must be different to achieve success.

▶ Build Measure Learn Cycle

The BUILD MEASURE LEARN loop is the driving force behind the start and distinguishes the Lean Startup ideas.

These three simple steps are the basis of operating in conditions of extreme uncertainty.

The verifiable learning loop begins with the word Lean.

First, define what you want to find out, then check it as an experiment and measure it.

Each startup has limited resources, so the creators want to go through the loops in the shortest possible time, gathering experience and finding answers.

▶ Engine of Growth


Is the first example of an engine of growth.
In this case, the company focuses on two indicators:

The first is: Customer retention rate.
The Second is: The rate of acquiring new customers.

Companies that use this engine of growth must be of high quality, brand loyalty, and trust among customers.


Organizations using this engine focus on an indicator called the virality rate.

It is checked how many new users of the platform are successfully invited by one user.


Seems to be the most popular growth model, especially among companies that already have an established position on the market.

Two indicators are important in this model:

CPA – Cost per Acquisition – Total cost of customer acquisition related to marketing and sales activities

LTV – LifeTime value – an estimate of the average revenue that a customer will generate throughout their lifespan as a customer.

▶ Pivot or Persevere?

This question is asked by every startup after completing the loop, depending on the results of the experiment. When the experiment confirms the verified assumptions, we move on to improving our M V P.

However, if the M V P disproves the growth hypothesis or the value hypothesis, payback should be considered.

Reversion involves rewriting the leap of faith about value and growth and can be done in many ways, depending on the results of previous experiments and the intuition of the owners.



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