First and foremost, before developing their product or service, an entrepreneur needs to frame it within a business model that makes the most sense. Here are a few tips on how to go about choosing the right one for your company.
A startup – the search for a business model.
- A startup is basically temporary organization that exists as a placeholder until a more formal business model can be applied. Is there a value proposition and market opportunity for your product?
The goal – fast iteration to find the value proposition.
- Test with your customers and iterate through several variations in order to find the one that works best.
Expect that you’ll be wrong and change accordingly.
It’s very possible that even after all of your testing and iterations that you still can’t find a viable market for your product. In short, if no one wants it, don’t let that stop you from pivoting yet again and finding a new way to solve the customers’ problem. If you remain agnostic to the method behind the solution, then you are much more likely to create one that people can utilize.