Idea. So, what is the idea? It starts with a vision means there are some people So, we have to identify what are their what who are our target peoples who are our target customers and what are their needs and the pains. So, every customer has their need and they have their own pain sometimes customer may not may know about their needs, they may not know about the needs, sometimes you just observe the sometime you just they just tell you your problems and the needs, sometimes you just observe them sometimes there is the customer has no idea about them, but there is a new product which is going to solve their unresolved known problems as well. Then you need to have vision, how you are going to solve your problem, how the people how you are going to solve the needs and the pains of the peoples.

So you may have developed this right sometimes often develop this and we have seen this in our previous chart that 42% of the startups fail just because they are not Using a write startup write product while the customer may want something else, so, we are giving them something which is they are not requesting. So that is one of the reason why the one of the major reason why the startups are failing nowadays. So, how is lean startup going to help us? What is the Lean Startup? So, it helps us to understand to answer two critical questions one, should we build this new product or services? Or how can we increase our odds of success?

Because as we have discussed in the previous video, the market is very very uncertain nowadays that there are new products new technology is coming every single day new startups ramp up with their new products. Some of the products some of the startups are offering exactly the same product services, but maybe a slightly different ideas slightly different value propositions. For take an example of the automatic video there are tons of websites Theo's website market website making tools there are tons of them hosting services there are tons of them offering almost the same prices, almost the same services, how you're going to choose them. So how they are surviving guess each other with huge marketing budgets with differentiating of slightly differentiating of services playing on the tricks on the prices. So there are many cutthroat competition, so none of them may be able to succeed or not all of them maybe succeed because the market is still big.

How do we know that? So the Lean Startup will help us to understand all of these questions and answer them before we go deep into the investments. It often happens that startups start investing too much of money without understanding without going to the customers and by the time they have the products, they may be customers, they may have some customers but it may not be enough to scale up. It may not be enough to make the money in may not be in Enough to generate enough revenue which they have made they have the estimated or how on based on the valuations that the startup was founded. There are many cases numerous cases where the startups live up to the hype, the product was great. Service was great.

They weren't customers, but it just didn't able to exceed Excel or didn't able to scale up to the required ratio and all the money was wasted. So, for example, we can take an example of the lean startup. There were two startups here offering the similar things when and instacart. So when weapons started, they put up all the they started off with a refrigerated warehouse. This hired a lot of people's 4500 people's, they had a delivery fee, which was 4.95. And then they were market they were doing the market in 10 metro areas, there's venture capital invested 440 million dollars on the startup and the start of fate.

In 2014, the similar startup work in Star instacart. There was they didn't even spend in the warehouse. They use existing were supermarkets as for the storage, so they didn't build on so there was no cost only 110 employees. So ultra efficient, they use courier services instead of hiring their own peoples. And the delivery fee was very reasonable lower than the market but they escaped up very fast in the lady was suffering for 10 min 15 metro areas, they were successful. So the reason why one was not successful one was successful is because there It doesn't mean that there was no demand.

The demand was there. But however when they just went on to scale too fast without understanding the market, put on too many fixed overheads when not able To generate enough profit, that's why this fit, while inside grand stay lean state asset light, no much or not much investment on the refrigerated warehouse, not much investment on the labor delivery fee was lower market was higher market. So the company was succeeded. So this is just one example how the lean startups can help your product to grow out to sustain the business or scale it up in the in the operations. So that was one introductory example. There are other examples of the lean does lean, which are businesses which are using the Lean principles.

For example, maybe you have recognized this logo by the time now, it's a Dropbox logo. So how the dropbox was succeeded, Dropbox started it's a screencast of a services and put it up on for the customer feedbacks. So the customer feedbacks, we're able to tell them how to develop their product. What are the drawbacks? And what are the features? What are the features they like?

So they were able to improve the services. Now Dropbox has over 500 million subscribers, users of their services. It's a highly successful business, but started lead. Then there is a Zappos. Zappos is an online shopping, online shopping online shoe shopping. So who might have thought that they should can be bought online.

So to test out the market, what the founders did, they took the pictures instead of building up the big warehouses instead of spending too much money on the product or to build the app to build the websites. What they did, they took the picture of the existing shoes in the market, put up on a small website, working website and then built around the customers. So if the customers order they go and personally deliver the shoes. So what benefit they had, they were able to get a direct feedback from the customers and one They got enough customer base when they were not able to deliver the by themselves means the business was scaling high. They developed the product and launch it now it's a highly successful business again G G is not a startup G is established company, but they follow Lean principles to develop new products to develop the then they have a startup and economic there they have a startup environment there which is called fast works to develop new designs, new products, and enhanced to fire fast in the speed of their bollocks by a survey, they were able to develop the product and launch them two years ahead of their original estimated time with 40% less cost.

So, these are these are the examples some of the examples of the real life what how they are using the Lean principles, and they are still successful. So Lean principles are not used all By the setups they are also used by the manufacturing companies. So how the link length principle is coming we're going to learn in the future. Thank you very much. Stay tuned.