So the path to success is not what people think as a straight line path to success is very, very complicated like actually like a, like a, like this path, which is going up and down. There are more downs than ups. The startups fail a lot of time. But the only startups who are able to succeed are those who have reservists who change their path very successfully, very critically very fast. And they rise from their failure. They learn from their failures.

So the concept is Learn, learn and learn, learn and adapt. So we're gonna, in this a couple of videos, we're going to learn about certain terminologies and definitions before we go deeper into the lean startup. So we're gonna be learning about intrapreneurial startups uncertainty, what is uncertainty assumptions, what is hypothesis, what is validated learning, what is an experiment, what is a minimum viable product? What is the customer development What is called pi words what is So, what is an intrapreneur or intrapreneur. So, the intrapreneur is a person who sets up a business or businesses taking on financial risk in the hope of profit. So, it is not there are now different different definitions of intrapreneurs they are sometimes called social entrepreneurs who are not taking on the profits, but they are taking the social risk but for solving big problems.

So, enterpreneur can is normally in the business terms is somebody who is taking the risk financial risk businesses in the hope of the profit. So, who is an entrepreneur and so, the intrapreneur is intrapreneurs within an organization so, like for example, GE is a big company right. So, the person who whoever is in charge of product development in the GE is an intrapreneur. The only difference is they are not taking financial risks and they are getting salaries. So, but they are working on behalf of an Companies So, they are also enterpreneurs but we call them intrapreneur because they are getting a fixed salary and they are not taking the financial risk. So, the intrapreneurs have more freedom and and they take more risk intrapreneurs take less risk and they have less freedom to, but both leader leadership roles for their own India perspective for the product development for the services development, sometime intrapreneurs are also taking the risk and they are also rewarded as a success of their products.

So, the intrapreneurs and neuter enter enterpreneurs The only difference is inside an inside or outside and how they are rewarded and how much risk Do they really take. Okay, so what is a startup then, as we have already learned startup is a human institution designed to create a new product and services under extreme uncertainties. That is a definition by Eric Ries, author of the Lean Startup So it's a startup is a institution which will be functioning under extreme uncertainties, extreme uncertainty is the key word here. So what is an uncertainty? Now what kind of uncertainty do we have? So uncertainty can be from the technical risk, will this product work?

Will the can we build this product? Will there be any demand for this product? Will the people buy it? Will people like to buy it? Will they want it for free or they will pay for it? If they pay, how much they will pay?

Can we build can we how much will be the cost of building the product. And this will be we'll be able to scale the product up to the certain conditions. For example, when, when developed the product developer services However, their business model was faulty. They took too much of the fixes fixed expenses, that's why they were not able to sustain while the business model of the instacart was asset light, they didn't have a lot of fixed costs. That's why they were able to succeed very Fast we were able to scale it down. So, there are some uncertainties not only related to the product that that can be built will will there be demand?

Is there any need for this product? The customers demand means the customer will they buy if we build will they buy? Will they buy from us or not? And then if even if they want to buy from us even if there is a demand, can we run Can we make money out of it means cost will be controllable or not? So, these are all the uncertainties which leads startups here to answer. What are the assumptions?

So, assumptions are something which starts with I think, I think it's right, I think it will rain it's an assumption right. So, this starts with I believe statements these are when you are starting a business you always assume certain things, you assume there will be a demand for the product you as a customer need a product you assume that your product will be able to solve their problems you as you, you will be able to build a product. So, there are many Things many assumptions that you are making. So, it clarifies your understanding what you don't know with certainty. So, always you start with certain assumptions, you cannot know everything for certain. So, there you always assume a lot of things, some assumptions are more important than the others.

So, how will you know that some assumptions are more important than the others, those assumptions which are going to define your business model for example, how much price you will be able to charge what will be the adoption ratio of the customers. So, these are very very critical issues will the customer need buy this product? The customer need is for like are you able to build this product. So, these are all the assumptions of the purpose. So, the action point is we need to isolate critical assumptions, what are our critical assumptions so that we can understand from an example, when the Airbnb started we everybody know these are this is this was the whole play of the noun Airbnb has overtaken billion dollars of valuation. So early assumption was, in a city where the space is limited, people will pay a small amount of money for a small amount of space, they don't need a hotel.

So this was their very early assumptions that because the founders, they didn't really pay a small amount for a very small space where they were not able to have a hotel. So, they were able to do that. So will other customers will also be doing. So this was an early assumption. So let's do a small exercise, what lays down your assumptions and products for your innovation and then we prioritize them. So, how we prioritize them, once we lie down, then please make it on a grid like this.

So where the we will divide our assumptions based on the in their impact on their impact, higher the impact higher and in what kind of time horizon. So let's say the higher impact will come the time horizon is higher means there that we will be able to know Certain only after a very long period of time, and their impact is high. So, it will come in this area, if we are able to know in a certain small time period and the impact is high we will record in this area. So, lower impact lower time horizon, we don't need to worry about long lower impact lower time horizon, we also may not longer present we may need to think about it also because we need to make them certain otherwise our whole business model may collapse. low impact high impact but low time horizon also we need to minimize the impact.

So, we need to understand what how will the impact be critical. And the high impact and high tomorrow isn't something we need to really really focus on. So, this is how we're going to work on with our assumptions. So let's we will look the rest of them in the next video.