Value vs. Waste in a Startup

In a traditional manufacturing business, value is defined as providing benefit to the customer. Anything that does not contribute to this is considered waste. However, in a startup, the definition of value is different.

In a startup, the customer and their needs are often unknown. Therefore, the most valuable activity a startup can engage in is learning what to build. Validated learning is the true measure of progress for a startup, not the number of features it builds.

From this perspective, any effort that does not contribute to learning what customers want is a form of waste. This includes:

• Building features that customers don't use.
• Spending time on activities that don't lead to validated learning.
• Failing to pivot when the evidence suggests that the current strategy is not working.

By focusing on validated learning, startups can eliminate waste and increase their chances of success. This is a core principle of the Lean Startup methodology.