SCORE counselor: Lean thinking is key to a prosperous startup

Starting a small business is harder than ever given the current economic climate. Entrepreneurs have traditionally been tasked with the challenge of doing more with less – fewer resources, less room for error, a small number of employees, etc.

Dean Swanson, a volunteer SCORE counselor, asserts that new entrepreneurs should familiarize themselves with Lean thinking and Kaizen. These mindsets can help to create a business that not only survives by doing more with less but actually thrives by doing so.

“The lack of a tailored management process has led many a startup to abandon all process in favor of a 'just do it' approach that avoids all forms of management,” Swanson explained in an article for PostBulletin. “A successful startup must create order, not just chaos, and put a rigorous process around the development of a product.”

Startups have a high rate of failure, with a Harvard Business report noting approximately 30 to 40 percent of all young companies fail (meaning they must liquidate all assets and the founders lose all the money they invested). By employing Lean practices, entrepreneurs may be able to increase their chances of success.