The greatest trick Eric Ries ever pulled was convincing a generation of ambitious programmers and dreamers that they had all the tools they needed to become the next Mark Zuckerberg.
Don’t get me wrong—there’s much to learn from the methodology outlined in his book, *The Lean Startup*. For example, in one social media startup founded by two former government employees, their idea of a good process boiled down to four-hour daily meetings to discuss the mission and user scenarios. After two months, they started demanding to see the product, even though only a few hours per week were left for actual development.
Eric Ries’s book succeeded because it accurately pinpointed the problem of corporate waste that many companies faced while trying to adapt outdated management methods to the digital world. When product creation becomes cheaper but uncertainty remains high, it’s crucial to gather feedback and draw conclusions faster before making significant investments. The book helped navigate this and highlighted an approach to reducing costs.
However, you can’t build a successful product without customers, just as you can’t build a successful business without the right relationships—with buyers, product creators, and investors.
The paradox is that the book’s foundation is precisely customer relationships. But the emphasis on minimalism and 'hacks' for data collection romanticized the idea of developing a project without excessive investment, while customer relationships took a back seat.
“Build It, and They Will Come”
Many aspiring entrepreneurs believe that all they need for success is time and proper execution—to create a minimum viable product and gradually improve it. Yet, they often forget to talk to real customers before starting development. This is a misunderstanding of *The Lean Startup*’s essence—validating the idea as early as possible, before product creation, is key.
Some reduce the idea to simply building an app and then waiting for feedback to guide next steps. However, this can lead to a 'wait-and-see mentality,' where users are perceived as mere data points rather than real people to engage with.
The Tyranny of Data
In one real estate rental startup, the team had extensive data on users—renters—but far less on agencies. The renter app was popular, but the startup needed to attract more agencies to succeed. Although everyone understood that improving relationships with agencies was the key, the company kept making decisions based on user data. Eventually, the startup slowly died because it failed to establish connections with the agencies that were supposed to bring in revenue.
Underestimating Skills
One negative consequence of *The Lean Startup* was the spread of the 'fake it till you make it' approach. This often pushes people to start projects without proper preparation, leading to significant stress. For example, one entrepreneur who decided to create a dating app hired junior developers to save money and launched without sufficient market understanding. A few months later, she had to shut down the project due to failure, which took a heavy toll on her morale.
How Do Successful Startups Actually Grow?
Among the successful startups I’ve encountered, most achieved success by building strong relationships, not just by applying methodologies. One example is a startup founded by three entrepreneurs who reinvested earnings from other projects into product development. Although the team had no software development experience, they secured their first customers through their business network.
Another grocery delivery startup managed to attract investors even before reaching profitability, thanks to its network of connections and referrals, which also played a crucial role in its success.
Build Relationships for Success
It’s important to understand that a company’s success depends not just on data and methodologies but also on people. Building strong relationships with customers, teams, and investors is the foundation of any successful business.