How Lean Startup Principles Saved Magoosh Tens of Thousands of Dollars, Bhavin Parikh, Magoosh

Lean Startup = Save $$$

How do we stay lean?

Done > Perfect

BUILD

MEASURELEARN

Data > Intuition

BUILD

MEASURELEARN

TOEFL is not like other tests

And the feedback says…

• It would be better if Magoosh provides a service for grading speaking and writing answers submitted by students.

• Plz include score validation for speaking and writing

• I’m sure most people on the survey mention this, but I really wish the Speaking and Writing section of Magoosh was actually graded.

Let’s solve this!

The excitement rabbit hole

Photo courtesy of Flickr user aldenchadwick under the Creative Commons 2.0 license

But wait…

Done > Perfect

Data > Intuition

Let’s try a test (Done > Perfect)

The grading process

Results (Data > Intuition)

Photo courtesy of Flickr user César Astudillo under the Creative Commons 2.0 license

Cost of the experiment

$3K to $5K

Cost of the actual solution

$30K to $50K

Lean = Validation = Profit

Building a lean culture