Small Batches Accelerate Learning

The concept of small batches comes from lean manufacturing, where it was discovered that producing goods in small batches is more efficient than producing them in large batches. This is counterintuitive, but it has been proven to be true in many different industries.

In a startup, the goal is not to produce more stuff efficiently. The goal is to learn how to build a sustainable business as quickly as possible. Small batches are essential for achieving this goal.

By working in small batches, a startup can get through the Build-Measure-Learn feedback loop more quickly. This is because each batch is an opportunity to learn something new. The smaller the batch, the more opportunities there are to learn.

Small batches also help to reduce waste. If it turns out that a product is not what customers want, it is much better to find this out after producing a small batch than after producing a large batch.

The ability to learn faster from customers is the essential competitive advantage that startups must possess. Working in small batches is a key enabler of this.