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Lean Start-up is a new way of looking at the development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition.
It favors experimentation over elaborate planning, customer feedback over intuition, and iterative design over traditional “big design up front” development.
Although the methodology is just a few years old, its concepts—such as “minimum viable product” and “pivoting”—have quickly taken root in the start-up world, and business schools have already begun adapting their curricula to teach them. Why start-ups must shun the idea of having a business plan, because, “they are not smaller versions of large companies, they do not unfold in accordance with master plans.

One of the critical differences is that while existing companies execute a business model, start-ups look for one. Lean start-ups practice something called agile development, which originated in the software industry. The business model canvas lets you look at all nine building blocks of your business on one page. An ideal business plan must describe the size of an opportunity, the problem to be solved, and the solution that the new venture will provide.

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