Is lean star-up the most cost effective start up?

This is a continuation of the previous blog...

Today I delivered a presentation in front of a group of venture capitals in Oresund top 10... I was very surprised by the reaction after the presentation was completed. I never thought that VCs would react on a presentation the same way that an inspired group of conference attendees do.

OK onward to the question is lean start-up the most cost effective start up? Yes and No. Let's start with the NO. When is Lean start-up not cost effective? The simple answer is when it is not managed properly. This happens when too much waste is generated by multiple failures without learning from such failures. It also happens when you overpromise and under deliver thus ruining your reputation in the market and losing further business. Remember the Minimum Viable Product? It is good for marketing but be careful as an organisation you don't have too many chances to disappoint your customers. There are several other reasons why a lean start-up is not cost effective, however those two are endemic.

So when is lean start-up cost effective? Again it boils down to good management and avoiding the most common fit fall of overpromising and under delivery. Furthermore it is cost effective when you manage to eliminate CAPEX intensive technologies and go open source. Why open source? It allows you to benefit from innovation of others without spending your time and resource re-inventing the wheel. Why re-invent the wheel when you can fly?

There are more arguments why lean start-up is cost effective but I guess I have to leave that to Eric Ries :-).... If you want to know more from me then simply ask :-)

Can someone please prove me wrong?