Why Prioritizing Risks Could Be the Difference Between Startup Success and Failure

Every startup is a gamble, but some bets are smarter than others. Running Lean teaches that by categorizing and prioritizing your risks, you can dramatically increase your chances of success. The three core risks are product risk—are you building the right thing? Customer risk—do customers truly have the problem? And market risk—can this be a viable business?

One startup founder realized their biggest risk was customer risk after early interviews revealed customers didn’t see the problem as urgent. This insight led to pivoting the target segment and redesigning the value proposition, saving months of wasted effort.

By focusing on the riskiest assumptions first, you reduce waste and accelerate learning. This approach contrasts with the traditional method of building a full product before testing market viability.

Prioritization also guides experiment design—testing the riskiest parts first yields the most valuable feedback. For example, testing pricing assumptions early can prevent launching an unprofitable product.

Understanding and embracing risk prioritization is a cornerstone of lean startup success. It ensures your limited resources are invested in learning what matters most.

Learn more about risk management in startups through resources from Readingraphics, Summaries.com, Blinkist, and Shortform. 1 2 3 4