When startup founders hear the word “lean” in reference to business, we usually think “lean startup.” But Eric Ries wasn’t the first person to apply the word “lean” to a business philosophy. Here’s a look at what lean means, how it applies in business versus manufacturing, and a quick explanation of lean startup.

1. What is lean business?

“Lean,” at its essence, is about using fewer resources in order to provide a great product to your customers. A company that’s implementing a lean system is focusing on streamlining its systems in order to reduce waste, ideally to the point of creating no waste at all.

One big advantage of adopting a lean business model the ability to change course quickly when the needs of your customer base change. When...