The lean startup quiz

The Lean Startup model offers a way to test an organization's hypotheses __________.

rigorously thoroughly immediately (all of these)

Startups are in a life-or-death struggle to learn how to build a sustainable business before they ______________________.

run out of resources and die

The one envelop at a time approach is called "single-piece flow" in lean manufacturing. It works because of the surprising power of _______________.

small batches

The Lean Startup methodology reconceives a startup's efforts as experiments that _______ its strategy to see which parts are brilliant and which are crazy.

test

T/F: Everything a startup does is understood to be an experiment designed to achieve validated learning.

true

T/F: In the Lean Startup model, an experiment is more than just a theoretical inquiry; it is also a first product.

true

T/F: Once IMVU's efforts were aligned with what customers really wanted, their experiments were much more likely to change their behavior for the better.

true

T/F: One of the most vexing aspects of the minimum viable product is the challenge it poses to traditional notions of quality.

true

T/F: Ries believes that entrepreneurship requires a managerial discipline to harness the entrepreneurial opportunity we have been given.

true

T/F: Startup organizations must attempt to tune the engine from the baseline toward the ideal.

true

T/F: Startups exist not just to make stuff, make money, or even serve customers. They exist to learn how to build a sustainable business.

true

Startups have a true north, a destination in mind: creating a thriving and world-changing business. Ries calls this the startup's _________.

vision

The critical first question for any lean transformation is:

which activities create value and which are a form of waste?

T/F: The goal of a minimum viable product is to begin the process of learning, not end it.

True

T/F: The goal of a startup is to figure out the right thing to build - the thing customers want and will pay for - as quickly as possible.

True

T/F: The innovation accounting framework makes it clear when the company is stuck and needs to change direction.

True

T/F: The prevailing management paradigm is inadequate to handle the problems of continuous innovation in the modern economy.

True

The point is not to find the average customer but to find ___________: the customers who feel the need for the product most acutely.

early adopters

Because the Japanese car market after the war was so small and capital was not available, they were unable to do mass production and take advantage of ______________.

economies of scale

_________ can allow entrepreneurs to form false conclusions and live in their own private reality.

. Vanity metrics

If you reach the limits for new customer growth (they are exhausted) and the growth suddenly slows, it provokes ______________.

A crisis

The amount of time a company can count on holding on to market leadership ot exploit its earlier innovations is _____________.

Shrinking

T/F: Companies that cannot bring themselves to pivot to a new direction on the basis of feedback from the marketplace can get stuck in the land of the living dead, neither growing enough nor dying, consuming resources and commitment from employees and other stakeholders but not moving ahead.

True

T/F: Customers reveal the truth in what they want by their action or inaction to your products or services.

True

T/F: If we do not know who the customer is, we do not know what quality is.

True

T/F: Learning milestones are useful for entrepreneurs as a way of assessing their progress accurately and objectively; they are also invaluable to managers and investors who must hold entrepreneurs accountable.

True

T/F: Positive changes in metrics offer the quantitative validation that your learning is real.

True

T/F: Startups need to conduct experiments that help determine what techniques will work in their unique circumstances.

True

The _______________ about how to build a sustainable business is the outcome of experiments.

learning

Without a ____________ many companies get caught in the trap of being satisfied with a small profitable business when a pivot might lead to more significant growth.

formal growth model

With all pivots, we have to get back to the basics and start the ________________ over.

innovation accounting cycle

The __________ is that version of the product that enables a full turn of the Build-Measure-Learn loop with a minimum amount of effort and the least amount of development time.

minimum viable product (MVP)

On an average each person who signs up will bring, on an average _______ than one other person with him or her.

more

The ___________ a startup builds are really experiments.

products

The biggest advantage of working in small batches is that ___________________.

quality problems can be identified much sooner

If the numbers for early experiments don't look promising, there is clearly a problem with the _________.

strategy

The focus of each team is iterating with customers as rapidly as possible, running experiments, and then using validated learning to make real-time investment decisions about what to work on. No team is _________ than five people.

larger

The __________ hypothesis tests whether a product or service really delivers value to customers once they are using it.

value

It is often easier to raise money or acquire other resources when you have ____ revenue.

zero

The following are all examples of ______________: Vanity metrics Unclear hypothesis Fear

Delaying the decision to pivot

_______________ is the process of demonstrating empirically that a team has discovered valuable truths about a startup's present and future business prospects.

Validated learning

A startup's job is to

a. devise experiments to learn how to move the real numbers closer to the ideal reflected in the business plan b. Both of these are correct c. rigorously measure where it is right now, confronting the hard truths that assement reveals

Many viral products do not charge customers directly but rely on indirect sources of revenue such as _________________.

advertising

Innovation is a _______________.

bottoms up b. All of these are correct c. unpredictable d. decentralized

_______________ are inventing the future.

college students

When a company _______, it starts the process all over again, reestablishing a new baseline and then tuning the engine from there.

pivot

After the startup has made all the micro changes and product optimizations it can to move its baseline toward the ideal, the company reaches a decision point. At this point they _________________.

pivot or persevere

Upon completing the Build-Measure-Learn loop, startups confront the most difficult question any entrepreneur faces:

to pivot or persevere

The MVP's ultimate goal is to ________________.

to test fundamental business hypothesis

Leadership requires creating conditions that ________ employees to do the kinds of experimentation that ewntreporeneurship requires.

enables

T/F: The importance of small-batch approach produces a finished product every few seconds, whereas the large-batch approach must deliver all the products at once, at the end.

true

T/F: The theory of the Lean Startup is an organization designed to create new products and services under conditions of extreme uncertainty.

true