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Build Measure Learn

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Build Measure Learn
The Build Measure Learn article is from Eric Ries’ book “The Lean Startup.” It talks about how newly starting entrepreneurs and Eric Ries himself were starting their business incorrectly. It says that most new entrepreneurs don’t exactly know what the customers want. Eric’s business IMVU was a messaging with video games. He and his partners were mostly concerned about the quality of the product. However, when they finished it finally it was not selling. The reason was that they did not know who their customers were and what they wanted. Customers did not care for a high quality for product, they wanted it to be popular, easy to use, fun, and be able to communicate with random people. Only after they have brought in customers and learned what they wanted the products started selling. Today IMVU is a profitable company with more than $50 million annual revenue. From this experience Eric suggests that learning what customers want is crucial. He suggests building a minimum viable product- MVP to test on customers. The goal of this MVP is to test the fundamental business hypothesis. I agree with this. The MVP helps the entrepreneur learn not only about the customer, but also the product, the business, etc. It helps the entrepreneur know if the business is viable, and worth the investment, since 90% of new businesses fail. And usually the entrepreneur ends up putting all of its money and effort into the business that is not giving any profits. Therefore MVP is a very helpful tool in testing a new product or business for entrepreneurs.

Works Cited
Leach, Chiris J., Ronald W. Melicher. Entrepreneurial Finance. Mason: South-Western Cengage Learning, 2009. Print.
Ryan. “Small Business Failure Rate- What You Should Know.” Ryansbizblog. Blogger., 11 Nov. 2010. Web. 03 Nov. 2011.
Schramm, Carl. “Our Economy Needs Innovation, New Ideas and Scalable

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