Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Your Free Business Opportunity Resource Is Easy To Use
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Free Lead Generation is a hot topic these days since many pay a pretty penny per portal to generate leads to increase ROI.

Free Lead Generation is part of any markets platform.  It is important to note that this November was 'nutty' for lack of a better word.  The purpose of this blog post...

Small Business Media and tapping into that vein can be a tricky and somewhat slippery slope unless you know some tricks of the trade.  Getting your message in front of the right audience is often the key to success.  So, where are the keys to the kingdom you ask and how can you get your hands on...

Entrepreneurs' Day 2016 on the 15th was outshined by politics, climate change discussions and so much more.  That is a real shame since small business is the backbone of this Country.

Entrepreneurs' Day - In my world it is Entrepreneurs' Day every day! I think, sleep and breath Entreprenuership...

Sponsors

Paid2Save Click or Call Bill Toth (716) 345-1888
If you could Travel more, Have Fun, and get Paid doing it, would you want to know more about it?
How Many Leads Does It Take To Close A Sale?
This Article is now live on our blog and I know could be very insightful for many. Read On
The Ideal Length of Everything Online, Including Social Media Posts
When one of your busiest marketing channels limits you to 140 characters, you know that the internet sets its own rules.
I Want To Buy a Business Opportunity or Franchise
Who are the types of people who buy a business opportunity or small franchise? According to people in... Read on
 
Resource Center > Article
Innovation Accounting: A Necessary Part of Any “Lean Startup”
1 Nov 11 Posted by: Kathleen C Lanza
in Start-Up
Share this Article:

In his recently released New York Times bestseller, “The Lean Start-up,” entrepreneur and master business start-up blogger Eric Ries lays out a host of business strategies that have caught the nationwide attention of prospective and current business owners alike.  The basic supposition of Ries’ book is that the success rate for innovative entrepreneurial endeavors can be improved by following his five Lean Start-up principles, one of which is “innovation accounting.”

According to Ries, among the most dangerous moves any business start-up can make is persevering for far too long, all in the name of that most stalwart of entrepreneurial traits―optimism.  Although there are exemplary tales of hugely successful business people who have risen above what were thought to be extremely grim odds, the tales of others in the same boat who led their companies into abject failure are far more common.

The Lean Startup

One of the reasons Ries cites for this sobering fact is that the more long-term projections of any traditional business plan, although helpful, are not realistic.  They oftentimes don’t accurately reflect or allow for the inherent turbulence that any start-up encounters, especially in its earliest days.

A start-up requires a degree of fluidity early on that is not conducive to a rigidly constructed and more standard approach, according to Ries.  This perspective is supported by his definition of a start-up’s job―“to (1) rigorously measure where it (thestartup) is right now, confronting the hard truths that assessment reveals, and then (2) devise experiments to learn how to move the real numbers closer to the ideal reflected in the business plan.”

While standard accounting policies and procedures are an integral part of any successful business, particularly larger corporations, they are not necessarily beneficial in evaluating entrepreneurial endeavors, especially early on.  That’s where Ries’ concept of innovation accounting comes in.

Many business owners deem the ongoing modification of their products and services coupled with rising numbers as a solid measure of progress, according to Ries. He says that’s just not good enough and encourages entrepreneurs to ask themselves two very important questions in this regard:  “How do we know that the changes we’ve made are related to the results we’re seeing?” and “More important, how do we know that we are drawing the right lessons from those changes?”

Innovation accounting, Ries says, allows for this more in-depth level of analysis.  It takes into account the “disruptive innovation” that is an inherent part of any start-up.  By implementing the three basic steps to innovation accounting set forth in Ries’ book, start-up entrepreneurs can prove objectively that they are growing what will become a sustainable operation.  Furthermore, they are able to turn what would once be considered faithful assumptions into a quantitative financial model, one that supports accountability even when the model changes.

According to Ries, innovation accounting works in three basic steps:

1)  It uses a minimal viable product (MVP) to establish real data on where the company stands at any
given juncture.  An MVP is the fastest way to establish a customer feedback loop with minimal output of effort, Ries
says.  Its primary goal is to test fundamental business hypotheses without having to perfect the product or service in question too prematurely.

2)  Using the MVP, start-ups, through many attempts, move from the baseline to the ideal, when the company then reaches a decision point.

3)  At this juncture, a company is either making solid progress toward the ideal enough that it makes sense to continue, or persevere.  If not, the strategy must be deemed flawed and in need of serious change―or as Ries labels it, a pivot, which starts the process all over again and in a more productive fashion than before.

If you are a home-based or other small business opportunity or franchise owner or start-up entrepreneur and want more in-depth information on innovation accounting and The Lean Start-up’s other key principles, visit http://theleanstartup.com/ today.

 

Related Blog Posts
8 Jun 16 Posted by: Kevin James Culp
in Start-Up

Commercial Property 101: Leasing commercial space can be hugely beneficial for your business and a great way to cut down your overheads.

However, there are lots of things you need to consider before leasing a commercial property to ensure that you’re making the right decision for your business....
19 Apr 16 Posted by: Todd Hatch
in Start-Up

StartUp Marketing - There is a wave of sheer exhilaration that comes with finishing your product or getting your startup to the starting line. But according to many entrepreneurs, that’s when the real work begins. People need to know what you have to offer before you can make money.

StartUp Marketing...
28 Mar 16 Posted by: Kevin James Culp
in Start-Up

StartUp Financing: Are you having trouble getting people to buy your expensive products or services? Whether you are offering a business opportunity or a franchise, you are not alone.

StartUp Financing: Even after your target audience is sold on the worth...
29 Dec 15 Posted by: Kevin James Culp
in Start-Up
Funding is the lifeblood of any business. The principle reason entrepreneurs put off starting their own business is lack of it. Raising funds from venture capitalists, friends and family is fraught with danger and is often very time consuming. Funding your business by mortgaging your home is risky too....
14 Dec 15 Posted by: Kevin James Culp
in Start-Up
Who are the types of people who buy a business opportunity or small franchise According to people in the field, this type of career move appeals to a wide range of personalities. If you’re worried that you don’t have what it takes, relax....
 
   

SocialXpand Business Opportunity Interview w/ Brian Weiss was for me a new way to learn from a customer and whom I consider a friend in the industry.

I've had the opportunity to work for a while now with Brian Weiss who is the Director of Sales for the
Video Spotlight

If you could Travel more, Have Fun, and get Paid doing it, would you want to know more about it?

Premium Sponsor