How do you use the lean startup method to test your social impact hypothesis?

1 What is the lean startup method?

The lean startup method is a framework for creating and testing new ventures based on the principles of experimentation, feedback, and iteration. It was developed by Eric Ries, who applied it to his own software startups and later popularized it in his book The Lean Startup. The method aims to reduce the risk of failure and waste of resources by validating the problem, the solution, and the business model before scaling up.

2 How does it apply to social impact?

The lean startup method can also be used to test your social impact hypothesis, which is your assumption about how your product or service will create positive change for your target population and the society at large. To test your hypothesis, you need to define your value proposition, your impact metrics, and your key assumptions. Then you need to design and run experiments to collect evidence that supports or refutes your hypothesis.

3 What are the steps to test your hypothesis?

Testing your social impact hypothesis using the lean startup method involves four main steps. First, you build a minimum viable product (MVP) that can deliver your value proposition and measure your impact. You also define an experiment to test one of your key assumptions with a clear hypothesis and a success criterion. Second, you measure data from your experiment, such as customer feedback, user behavior, social outcomes, or revenue. Third, you analyze the data and compare it to your hypothesis and success criterion to determine if your experiment validated or invalidated your assumption and what insights you gained from it. Lastly, you decide whether to pivot or persevere based on your learning. Pivoting means changing your product, value proposition, or business model to better fit customer needs and social goals, while persevering means continuing with your current strategy and testing another assumption.

4 What are the benefits of testing your hypothesis?

Testing your social impact hypothesis using the lean startup method can help you avoid investing in something that nobody wants, while learning from customers and beneficiaries to understand their needs, preferences, and behaviors. It also allows you to adapt to changing market conditions and social contexts and respond to new opportunities and challenges. Additionally, testing your hypothesis can increase your credibility and transparency with stakeholders by showing evidence of your impact, as well as improve product or service quality and performance, ultimately enhancing your social value proposition.

5 What are the challenges of testing your hypothesis?

Testing your social impact hypothesis using the lean startup method can be difficult, as it requires finding the right balance between speed and rigor in designing and running experiments. Additionally, you must be able to deal with uncertainty and ambiguity, as well as cope with failure and negative feedback. Furthermore, you must be able to align your social mission and vision with your financial sustainability and scalability goals. Moreover, measuring and attributing your impact in complex and dynamic social systems can be a challenge. Lastly, you must consider the ethical and legal implications of experimenting with vulnerable or marginalized populations.