by Eric Reis, author of the Lean Startup on his blog StartupLessonsLearned.com
Myth: Lean means cheap. Lean startups try to spend as little money as possible.
Truth: The Lean Startup method is not about cost, it is about speed. Lean Startups waste less money, because they use a disciplined approach to testing new products and ideas. Lean, when used in the context of lean startup, refers to a process of building companies and products using lean manufacturing principles applied to innovation. That process involves rapid hypothesis testing, validated learning about customers, and a disciplined approach to product development.
1. ‘Lean startup’ is the panacea against company failure
A company is a machine. One faulty part can destroy the whole thing even if the rest are working fine. The main one is the mismanagement of resources. One may follow the lean methodology to the T but if they spend more time & money than necessary then the company will fail (this includes mistiming the pivot). The lean methodology helps to weed out bad ideas with no market support and to reduce some of the uncertainty associated with building a new product.