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Failing fast is done to reduce risk. The quicker a company fails with an idea, i.e. discovers that there is no market fit, the fewer money was wasted on it. The
by andor 8y ago
Failing fast is done to reduce risk. The quicker a company fails with an idea, i.e. discovers that there is no market fit, the fewer money was wasted on it. The remaining budget can be used to try other ideas.
The big company model, where something unproven is developed for a long time by a large team, is substantially more risky. Only when they go live after "finishing" their product they might discover that nobody wants it.
Anybody trying to innovate will fail at one point or another, because not all bets play out. So the key is to make the bets as small as possible and therefore "fail" as quickly as possible.
- mk89 8y agoYou are right! I only saw this from the perspective of the investor that gives money and "hopes" it will work. This doesn't contradict the fact, though, that in Europe the "big plan" tends to work for a simple reason: there are already deals (if it's a b2b) or the product doesn't innovate and it's based on something already working elsewhere. Obviously this prevents innovation.
- chopin 8y agoBut with this model you can create only shallow products. It's difficult to create something with high upfront costs this way.