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5 Business Models for Lean Startup

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Lean Startup approach does not only allow for faster product development and deployment but this hypothesis-driven methodology also helps your business flexible to respond quickly as well as a user-friendly product. In a world where a small variability in efficiency has a great impact on the preferences of customers, faster creation and deployment of products is the answer to winning over the market and staying ahead of the competition.

 

This article would share an insight into the top 5 business models for lean startups from offshore software development that small and medium-sized enterprises could consider when developing products.

1. Agile development

Agile software development mainly involves the iterative development of the product. The model is highly reliant on collaboration between cross-functional teams that work together to bring various components of the product together incrementally over several weeks. Apart from the great room for flexibility associated with this model, Agile development also allows for the delivery of high-quality products in a shorter time. Further, collaboration and the incremental approach in development improves the predictability of the products developed. The main principles that govern Agile development include:

  • Frequent and continuous delivery of a functioning software product

  • Customer satisfaction through all stages of development

  • Regular reflections on the quality and effectiveness of the product

  • Continuous collaboration among self-organizing teams with varied ideas and design concepts

2. Offshore development 

The conventional approach for software development has been businesses setting up an IT department or sourcing IT service providers locally. But offshore development has changed all that. Offshore developers involve acquiring software development services from developers in foreign companies. Perhaps the main difference is unlike hiring local teams; offshore development means you will be working with a team in a different location. Team management and communication are done remotely.

Offshore development has grown in popularity over time, particularly for startups. This is attributable to the model being relatively inexpensive while getting access to specialized skills. Further, it is easier to scale up or down, depending on your needs.

When exploring offshore development options for your software project, some key aspects to consider include:

  • The vendor should demonstrate the ability to deliver high-quality services seamlessly. 

  • A strong portfolio goes a long way to prove suitability.

  • A good reputation is ideal as it assures professionalism and a seamless working relationship despite the geographical differences.

  • The vendor should offer competitive rates. Cheap rates can be alluring, but they often compromise quality.

3. Minimum Viable Product 

The Minimum Viable Product (MVP) model is based on the idea of creating the most basic version of a product that satisfies the needs of users. The idea is to validate a product by learning what the customers require of the product and molding the software product to meet their desires and expectations. Further, it eliminates the need for full investment in building an entire product before testing and adjusting. Instead, if the MVP proves relevant and acceptable to the target users, additional components can be added progressively based on the customer needs to improve the user experience.

This model is ideal for businesses that want to:

  • Develop and release a product quickly to the market.

  • Optimize their investment my minimizing spending risks that come with full development

  • Get their target users to be part of the product through development.

  • Develop a future-proof product.

4. Continuous Development 

The Continuous development model entails testing, updating, deploying, and measuring software performance continuously as the development is continually progressing. This model is ideal as it allows businesses to adopt new ways of creating value for their customers to win over the market and maintain a competitive edge over competitors.

With the continuous development model, upgrades on the product are informed by the feedback from the customer. Often, the use of small, reusable blocks of code allows for continuous integration of the new components into the existing architecture of the product without affecting the performance of the initial features. The result is faster iterations and improvements in your product. Further, this model grants you full control of the timing, and your product is always in a state of readiness.

Google and Netflix are some top companies that employ continuous development for their software products.

5. Feature-Driven Development 

Feature-Driven Development (FDD) pragmatic software development approach is centered around customer needs. It is an iterative and incremental software development model that aims to deliver updates on software projects regularly and efficiently. Perhaps the most appealing attributes of the model that have earned it popularity and preference among developers are the ability to identify errors quickly and provide considerable results within short intervals. The reduces chances of rework also points to the efficiency in development.

Feature-driven development is ideal for long-term projects that are a bit complex. It is a comprehensive methodology that keeps the development team focused and structures. Additionally, it allows for easy scaling up or down through the development, thus offering enough room for flexibility while pursuing clear outcomes.

Conclusion 

The ideal model to adopt is dependent on the nature of your project and the resources at your disposal. Additionally, a model that allows you to meet the needs of your users immediately while future-proofing your product is best for assured product potency. Overall, lean startup models offer great room for flexibility, allowing for continuous adaptation to the market needs and keeping up with industry standards.

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