Running Lean, 3rd Edition

Chapter 5. Communicate Your Idea Clearly and Concisely

The number one reason why startups fail is that they build something nobody wants. The number two reason why products fail is not getting the right buy-in from key stakeholders.

Your key stakeholders include your founding team members, early customers, advisors, and investors.

If you’re incubating your idea in a large company, you’re probably going to be asked to write a 60-page business plan with a 5-year financial forecast and an 18-month product roadmap. For new, innovative ideas, these things are simply unknowable at the outset. As a result, these ideas seldom get past the gatekeepers.

If you’re a startup (or part of an innovation team with a mandate to innovate), getting started is a bit easier. You may sketch your Lean Canvas, formulate your MSC, identify the problem and customer segments…but then you get stuck shortly thereafter when trying to secure additional resources to grow your product and team. You need to pitch your idea in order to get others to see what you see, to buy into your worldview, join your mission, and invest their time, money, and/or effort.

We saw how Steve struggled to get others to see what he saw with his idea. He wasn’t able to convince others (investors or cofounders) to get behind his vision, which led to a classic catch-22. Even if you’re bootstrapping your project and not seeking investors, you’ll eventually need additional resources like cofounders, equipment, etc. to grow an idea.