• Introduction - Start Here
  • Section 1: Planning Your Business

    In the first section, Planning Your Business, you will learn how to find your customers, how to create a value proposition (a product that customers want) and how to build a business model around it. You will also learn how to use your startup to test your business model quickly and cheaply, and how to make necessary changes.

  • Section 2: FUNDING Your Business

    In the second section, Funding Your Business, you’ll learn how to test your startup like an investor. You’ll also better understand how venture capital works.

  • Section 3: PRESENTING Your Business

    In the third section, Presenting Your Business, you’ll learn how to present your startup to investors and customers.

  • Resources

    Finally, the Resources section at the end contains a glossary and reading list to help you on your journey from an idea to a profitable business.

  • Primer Demo Day

1.6 Test your business model

1.6 Test (and change) your business model


We hope you’re now starting to realize that creating a successful business is simple but not easy. To be successful and to avoid ending up like the 90% of startups that fail, you need to understand and follow three simple principles:


1. People only buy things they need. So, you first need to figure out what people need that they aren’t getting.
2. The main reason startups fail is because they spend their time and money perfecting and trying to sell a solution that no one actually needs.
3. As a startup, the only thing you need to do is learn what people need and create something that’s better than what they’re currently buying. Doing anything else is a waste of time and money.


This section will teach you how to test your theories as quickly and cheaply as possible, so that you can successfully make the transition from startup to business. This is the philosophy behind the book The Lean Startup and what is now called lean methodology.


Lean Thinking is a methodology for improving cycle times and quality through the elimination of waste.
Lean Startup is the application of lean thinking to the process of innovation.