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A business expert has claimed that lean start-up techniques can teach big companies how to cut costs.

Steven Blank, a Berkeley University Lecturer who has successfully established eight start-up companies, also said that lean start-ups can make large firms more profitable.

“A start-up is a temporary organisation designed to discover a profitable, scalable business model,” Blank explained.

By setting up an organisation which mirrors your company’s aims you can test how it can be run more effectively without risking the finances or the reputation of your business.

“The lean start-up model exploits the inexpensive, nimble technologies of open-source software and the web to accelerate the pace of testing new ideas, finding customers and learning from mistakes, through constant trial and error,” said Steve Lohr, New York Times journalist.

You can use social networking sites and forums to explore customer reactions to ideas that maybe amazing parts of innovation or the death nails in your firm’s coffin.

The lean start-up model is marketing tool, an efficiency regulator and product tester.

It has been suggested that this up approach can help companies to significantly lower development costs, get their products to the market faster and improve the quality of those products.