Startups as Experiments

Every startup should be viewed as a grand experiment. The goal of the experiment is to answer two fundamental questions:

1. Should this product be built?
2. Can we build a sustainable business around this set of products and services?

In the modern economy, almost any product that can be imagined can be built. Therefore, the question is not "Can this product be built?", but rather "Should this product be built?".

To answer these questions, startups need to adopt a scientific approach. Every product, every feature, every marketing campaign—everything a startup does—should be understood as an experiment designed to achieve validated learning.

This experimental approach involves the following steps:

1. Formulate a hypothesis: Start with a clear hypothesis about what you think will happen.
2. Design an experiment: Design an experiment to test your hypothesis.
3. Run the experiment: Run the experiment and collect data.
4. Analyze the results: Analyze the results and learn from them.
5. Iterate: Use what you have learned to inform your next experiment.

By treating their startup as an experiment, entrepreneurs can systematically de-risk their business and increase their chances of success. This is the core of the Lean Startup methodology.