Toyota is known for reliable, and perfect products, with a five year guarantee on its cars. Eric Ries thought that, in order to get customers to buy your products as a startup, you also have to develop perfect products and promise excellent after sales service afterwards.

Eric Ries had several experiences where he had wasted a lot of time to develop functionally perfect software products, but for which there was no market. He figured that it was much more efficient to make imperfect products and then quickly test customer reaction so as to avoid wasted time and resources, and then to engage in continuous improvement to make the products better and better. This process of “avoiding waste”, and “continuous improvement” was exactly like lean manufacturing, and so he translated the analogy into “Lean Startup”.

The Lean Startup is a way for Eric Ries to ensure more book sales. In airport book shops, Lean Manufacturing books are known as best sellers, and so he tried to trick customers in buying his book by adding the word “lean” in the title.

Business angels are like insurance companies: when a startup is going bad, they save it from bankruptcy by making a donation to the startup.

A business angel is an investment bank that offers governments in developing countries loans to develop the economy.

Business angels invest their own money in startups.

A business angel is a religious person (priest, monk, bishop, etc) that collects community resources and invests it in startups in the impact or social entrepreneurship space.

Helps you to learn when you don’t know which theories or frameworks explain a particular phenomenon or observation

Is when you start with one or more generalized and accepted theories and you apply it to different situation.

Inductive reasoning is not theory-less. It just means that your starting point is an observation, and you confront this observation with existing knowledge and theory to develop an insight about how the world functions.

Is when you are collecting data first and by analyzing data you are trying to make generalizable statements or theories that help understand phenomenon around you (true)

After decades of searching, finally researchers found the complete list of characteristics that are needed to be an entrepreneur.

The question could not be answered, as George W. Bush famously said: “the French don’t even have a word for entrepreneur”.

After decades of inconclusive research, people started realizing that what defines entrepreneurship is not something that can be written down as a set of characteristics that you have or not, but rather a set of things that you DO or not.

The question was too difficult to ask, because who is defined as an entrepreneur depends on legislation.

You can draw on your experience from sneaker sales to develop hypotheses about the best time and price point would be to sell your sneakers.

After doing market research and establishing desired market share, you will write up your business plan. From this plan you can induce how many you will have to produce every year.

Whereas most of the exclusive sneakers are popular with teenagers and people in their early twenties, you would like to appeal to people in their early thirties, as they have a bigger budget. Currently, however, this market has not been explored yet and so you would need to go in the field to learn about their desires and tastes, both in product as well as shopping experience for this new brand and product.

You can draw from consumer trends which type of product features consurmers are likely to want. You can develop prototypes to test the appetite for these product features in your brand.

If you own your own business, then you are an entrepreneur.

While the science of entrepreneurship cannot give you the recipe for success, it can offer you some advice about the process that increases the likelihood of success, and that decreases the cost of failure.

Entrepreneurship is all about perseverance. Even if everybody tells you that your idea is not good, you have to believe in it with all your heart.

All entrepreneurs become rich.

The main difference between Effectuation and the Lean Startup is its origins: the Lean Startup was a term used in Academia, whereas Effectuation comes out of Silicon Valley practice.

While both streams describe entrepreneurial search as an iterative process, the effectuation stream suggests that success comes only after 2 cycles of test-and-learn, whereas the Lean Startup suggests 5 cycles.

There is no difference between Effectuation and the Lean Startup. Both concepts can be used interchangeably. 

While both streams describe entrepreneurial search as an iterative process, the focus of the Effectuation stream is to understand how the entrepreneurial search helps a person find a solution, whereas the Lean Startup is more focused on the success of the project. 

Whereas most of the exclusive accessories are popular with executives, you would like to appeal to people in their early forties, as they have a bigger budget. Currently, however, this market has not been explored yet and so you would need to go in the field to learn about their desires and tastes, both in product as well as shopping experience for this new brand and product.

You can draw on your experience from accessories sales to develop hypotheses about the best time and price point would be to sell your belts.

You can draw from new luxury brands advertising which type of product features consumers are likely to want. You can develop prototypes to test the appetite for these product features in your brand.

After doing market research and establishing desired market share, you will write up your business plan. From this plan you can determine how many you will have to produce every year.