Questions

How do you decide on a startup's business model?

4answers

I would focus on the problem you solve more than the "business model" per se. Unless you're talking specifically about how to make money.

The problem with most startups is that they don't solve an actual specific problem. It's a mobile app for example that does something, but doesn't really address a serious need. It just does something that isn't already being done.

If you add some more color to your question I'd be happy to add some more color to the answer ;)


Answered 5 years ago

You may need to provide further details, but there are models out there that could help clarify your thinking.
Try the book 'business model generation' to help with this. The dashboard is a tool I use with my clients and we have had really great results. The last client I worked with ended up finding an opportunity they had been blind to and did over a million dollars in the following six months.


Answered 5 years ago

It should be obvious based on the vertical market you are entering. A wise man once told me (when people were getting crazy about throwing money at Internet start ups back in 2000) "there is no new business. Its all been done before it just takes on new and different forms."
Unless you are a true transformation change agent and have some ultra unique idea that has never been done before look at what the other competitors are doing in your space, pick the most successful one and model your business to a large degree off of that.


Answered 5 years ago

You start by figuring out what problem you're solving, what pain you're alleviating, not by what your business model is. The latter will fall out of the former.

Uber solves a "crappy cab" problem, Airbnb solves an "expensive hotel" problem, Apple solves a "complicated computer" problem. After you've figured out what problem you're solving you then figure out how much you can charge for that solution.


Answered 5 years ago

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