Startups will always have their risks. Even though the owners were using nearly all the Lean Startup Principles we experienced some limitations with the Careviz app. The reason is that, like any methodology, disadvantages exist in the lean startup.
So, yes startups will always have their risks. It involves investing the bulk of your time and resources in perfecting a product before presenting it to customers in the hopes of creating a market for it. However, this stealth-like production often backfires. In fact, a study by Small Business Trends says only two out of five startups become profitable in the end.
Lean startups turn against such a mindset by relying on customers’ feedback at the get-go. By releasing their products early on, they can continuously improve them according to their customers’ demands.
But like all business models, lean startup principles have their own advantages and disadvantages. Hence, you must equip yourself with the right knowledge and tools to properly understand its principles and ensure higher success chances.
With that, here are some of the limitations of lean startup limitations and how you can overcome them.
1. The possibility of “false negativity”
The first lean startup limitation we would like to point out is the case. So, while feedback can be constructive and essential to your product’s development, it may also have its own negative effects. For one, it can dishearten managers to the point of pulling the plug so early in the cycle.
Thus, one of the most common problems with the lean startup is the possibility of “false negative” limitations. It is where good ideas are prematurely shot down before they can even grow or be completed.
Nonetheless, you must always keep in mind that the whole purpose of a lean startup is to learn from past mistakes and grow from them. You need only to treat feedback as valuable data for the betterment of your company. And with patience and perseverance, you can overcome this obstacle in time.
2. Errors can have serious consequences
The lean startup principles rely on trials and errors and this can be assumed as a huge list of disadvantages. It believes that it is better to fail fast because it reduces potential monetary loss and creates room for improvements later on. However, this kind of mindset may not apply to products or ideas where errors may have serious consequences.
This refers to critical situations that may involve legal, compliance, healthy, safety, political, or financial risks. Errors within such a context may result in harming your organization and customers.
For such instances, you will need extra care in releasing your products. This may involve taking more time in stabilizing and testing your products before the early launch. You may also want to consult or work closely with experts to guide you accordingly in handling such risks. And most importantly, you can invest more in research. For example, check out these use cases on how to use lean startup advantages and limitations in developing a:
3. Might not work with big ideas
A lean startup is never complete without a minimum viable product (MVP). These are a kind of prototype that allows you to collect the maximum validated learning about customers with the least effort.
By going lean, you may expect to launch several MVPs before you can reach the point where customers are satisfied with your product. However, such a process may not be sustainable for ambitious innovations like Elon Musk’s rocket or Apple’s iPhones.
The lean startup criticism usually involves not working with big ideas. However, it does work wonders with validating parts of a bigger startup vision in the long run. So, take it to step by step. You don’t have to go guns ablaze from the get-go. Big ideas can always be broken apart into smaller pieces first.
4. Pivoting away from your passion
The importance of a lean startup is that it allows you to evade potential losses before you can fully commit to a certain idea or product. However, this can serve as yet another limitation to the methodology. Relying too much on feedback can result in losing sight of your initial vision and passion along the way.
To overcome this limitation, you must always stay true to your mission. Listening to feedback doesn’t entirely mean scraping off the entirety of your plan. You simply have to identify what works and what doesn’t and move on from there.
5. Never know when to stop
With lean startup limitations, your company must constantly work hand in hand with your customers every step of the way. Every version of your product will be tested and reviewed, reiterated, and improved on. Rinse and repeat.
However, there have never been some clear-cut rules as to when you should declare victory, stop testing, and proceed with scaling production. Before you know it, you’ll be stuck in an endless loop of creating, reviewing, and rebuilding.
Thus, you must set goals and criteria for your product early on. A solid plan and timeline can prevent you from ending up in such a fate in the long run.
Starting it up to lean
The philosophy of the lean startup methodology is heavily founded on experimentations and iterations. It accepts that failure is an inevitable part of creating a startup, but it works to improve products and processes along the way. So, like any methodology, the lean startup also has limitations. That’s why we have just pointed out a list of Lean Startup Principles.
On paper, this may sound simple. But when it comes to execution, is where things can start to get tricky. So, you should arm yourself with the right application development software for startups and best practices. There may be some limitations, but don’t let these stop you from pursuing your idea.
Don’t miss the list of tools we’ve sorted out as the best for startups.