The two most common project development methodologies are waterfall and agile. Rarely will entrepreneurs, especially from idea until reaching product-market fit, adopt a waterfall methodology given its assumption of certainty about requirement, technology, and users’ needs and expectations. Startups are responsible for seeking a scalable model. From the initial hypothesis until reaching scalability, requirement and technology is likely to change several times and user needs and expectations need time and experimentation to understand. Due to the linear development nature of a waterfall methodology, it is very time consuming to make sudden changes to the scope once design and development started.
Agile in the other hand is used when product requirement is unknown, end results are not fully clear, user needs are to be determined and tested, and finally because scope will inevitably change in one way or another. This methodology is about adaptation and flexibility. Under agile, teams can build, test and iterate quickly. This enables them to quickly incorporate insights from their customer interaction and quantitative experimentation. Th Standish Group shows that it costs less to build software under agile due to its iterative and waste elimination nature. It further shows that projects under Agile are 3 times more likely to end successfully as compared to Waterfall.