Business I / Innovation and Entrepreneurship
Practice question · Put in order

Order the lean-startup cycle for a new delivery service.

Hints
  1. A hypothesis must exist before anything is built to test it.
  2. The loop ends by either persevering or changing direction.
Show the answer
  1. State the riskiest hypothesis: "restaurants will pay 20% commission"
  2. Build a minimal test: ten restaurants, manual dispatch
  3. Measure real behavior: sign-ups, orders, churn
  4. Learn: commission tolerance is 12%, not 20%
  5. Pivot the revenue model and rerun the loop
Why

Hypothesis, build, measure, learn, pivot, each loop costs weeks, not funding rounds; the method’s whole economy is making ignorance cheap to cure.

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