Using the example of a typical movie narrative, the cool factor of startups usually centers on Act 1 and Act 3 -- the initial creative inspiration and the triumphant frolicking in piles of money. But it's the taxing, daily work of Act 2 that will, or won't, ultimately bring a new company to successful, sustainable maturity. Observing the entrepreneurial wisdom of "Ghostbusters," Eric Ries, author of The Lean Startup, talks about how the essential decisions of an ultimately successful startup are made in the boring, day-to-day grind that no movie ever shows.
But can you tell if your startup is efficiently grinding toward failure? How do you measure progress for a project with no precedent? Eric takes the view that a startup is a scientific experiment designed to test hypotheses, and therefore requires a unique managerial approach. In this 10-minute talk, he speaks about why this approach is necessary and briefly describes an "Innovation Accounting" method to guide day-to-day decision-making and inform larger course corrections.
Referencing his book, Eric also talks briefly about each of the five major lessons learned from the trenches of his own startups and from the startups he's advised.
This free podcast is from our Web 2.0 Conference series.
Photo: Nick Wilson