How a key architect of Lean Startup uses his own lessons to scale up - Business Insider

Alex Osterwalder, startup founder and author, and one of the architects of the Lean Startup approach, has led four companies that made him an expert on innovation and strategy, earning the trust of the world's biggest companies.

Ask innovation expert, author, and startup founder Alex Osterwalder, and he'll say that more money and people are a means to an end. The real questions are twofold: What is the real value that you're offering to the market, and do you have a business model to support that value proposition? "Rather than throwing bodies at a problem, like any consulting firm would do, like McKinsey or Bain, we actually throw very few bodies at the problem and use technology to be able to scale it," Osterwalder said in an interview with Business Insider.

But in spite of his expertise in building and testing business models, Osterwalder says there's only one way to learn the ropes of building the business in the real world. There's just no replacement for experience. "Smart people who can figure it out will make mistakes that smart people who've made those mistakes before won't make again," Osterwalder said.

"The good news is we have a pretty sustainable business model that can swallow all those mistakes. Most companies, they run out of money when they make the mistakes we made, but we actually started with a business model that was pretty good," he said."If we wanted to scale faster, we probably would have just become a consulting firm," he said. "But I'm not interested in scale, per se. What I'm interested in is us actually realizing a vision.

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