Build-Measure-Learn Loop

Build, measure, learn – as fast and as often as possible.

In the search for a sustainable business model, the top priority is learning: every start-up has to learn which products to build and how to earn money from them.

This can’t happen if you’re out of touch with the real world. You need to get out there, show your product to customers, gather their feedback and then learn from it.

To facilitate this, set up so-called BML loops. BML signifies the cycle build-measure-learn:

First you build a simple version of your product, like a prototype or a smoke-test.

Second, you take this product to its actual market and gather customer feedback. By collecting quantitative data from this experiment, you measure interest in the product; for instance, how many people clicked the purchase button and tried to buy shoes from your fake web shop.

When measuring, make sure you don’t just look at the numbers but also talk to your customers. If you want to understand your data, you should learn about the individual impressions and opinions of your customers as well.

What you learn in one cycle should then be used to conceptualize and build a new, optimized product, which brings you into the next BML cycle. This process is then repeated until you find a sustainable business model.

It’s important to be fast here. Each BML loop helps you improve your product and gives you valuable insights about what your customers want. The more loops you can go through, the more likely it is you will find your sustainable business model.