6 Keys To Proving A Viable Startup Business Model

Startup Professionals Musings

How do you convince investors that your business model will really work, before you have a revenue stream that exceeds your expenses? Even if you are bootstrapping your business, and you are the only investor, you should be asking yourself the same question.

Digging Deeper into Lean Business Model Canvases

Instigator Blog

I was also very impressed with Steve Blank’s new initiative Lean Launch Lab , which combines a canvas business model tool and a blogging tool for startups to use and share information regularly with investors. These sorts of problems are hard to track in business model canvases.

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The Mission Model Canvas – An Adapted Business Model Canvas for Mission-Driven Organizations

Steve Blank

As we prepared for the new Hacking for Defense class at Stanford, we had to stop and ask ourselves: How do we use the Business Model Canvas if the primary goal is not to earn money, but to fulfill a mission? In a business the aim is to earn more money than you spend.

The unprofitable SaaS business model trap

A Smart Bear: Startups and Marketing for Geeks

So no, this upside-down business model isn’t what a SaaS business should construct. Even with very broad numbers, you can see how this model doesn’t work. Leaving the metrics alone, and trying to “grow until profitable” doesn’t work.

Fermi estimation for startup business models

A Smart Bear: Startups and Marketing for Geeks

Often your best estimate of any metric or market behavior or business model component is at best accurate within a power of ten, for example “expected conversion rate between 0.5% Early in a company’s life, you don’t know anything.

The 20-Minute Business Model

Inc Startups

Can you put your entire business model down on paper in 20 minutes? We sometimes find it challenging, though, to move forward with fundamentally new business models. Maurya emphasizes the need to develop a testable business model quickly.

The Very Best Digital Metrics For 15 Different Companies!

Occam's Razor

The very best analysts are know what matter’s the most are not the insights from big data but clear actions and compelling business impact from usually a smaller subset of key data. There is no golden metric for everyone, we are all unique snowflakes! :).

Combine Creative Products with a New Business Model

Startup Professionals Musings

Within the startup realm, there is a big difference between having an innovative product versus an innovative business. Some startups have a new technology, but stick to a tried-and-true business model. entrepreneur Josh Linkner startup business model

No wait, of course THAT is the single most important SaaS metric

A Smart Bear: Startups and Marketing for Geeks

The single most important SaaS metric is retention , because cancellations indicate lack of product/market fit, no matter the cause (price, features, severity of need, duration of need). If it cannot be fixed, it means the business is a failure even if other metrics are stellar.

3 Business Models Venture Capitalists Love

Inc Startups

Are you obsessed with the same metrics investors care about? Here are three investor-friendly ways of looking at fast-growth businesses. But, when you look deeper, it’s all about metrics -- and maybe not the metrics that you, the entrepreneur, are most focused on.

Business Model Analysis, Part 1: Key Questions

Platforms and Networks

Business model analysis is central to the lean startup approach developed by Eric Ries , Steve Blank , and others. But what exactly is a business model? I’ll also share some practical guidelines for conducting business model analysis. business models

The Lean Analytics Cycle: Metrics > Hypothesis > Experiment > Act

Occam's Razor

To win in business you need to follow this process: Metrics > Hypothesis > Experiment > Act. We are far too enamored with data collection and reporting the standard metrics we love because others love them because someone else said they were nice so many years ago.

Why Metrics Get Worse With Scale

Seeing Both Sides

Conventional wisdom suggests that the most important metrics for a startup - such as unit economics, cost of acquisition, lifetime value, churn rates - typically get better with time. Here are a few other key metrics that are hard to scale: Customer acquisition.

Traction Metrics Seed Real Startup Funding And Growth

Startup Professionals Musings

That should make you wonder - how do you measure traction in a metric? According to most experts , business traction is evidence that somebody really wants your product. Validate every key element of your business model. Use these metrics rather than hide them.

9 Metrics Every Entrepreneur Should Know About Their Business Offhand

Up and Running

Yet you might be surprised how easily business owners are stumped by questions like these. That’s why we asked nine members from Young Entrepreneur Council (YEC) what metrics all founders should be aware of — always. No Specific Metric.

Crushing It With Competitive Intelligence Analysis: Best Metrics, Reports

Occam's Razor

Traffic Trends Key Metrics Analysis. Onsite Behavior Key Metrics Analysis. I tend to use Hitwise a lot less, or not at all, because it is a very hard to use, it is slow, the UX/UI, metrics and reports have not really evolved over the years. Traffic Trends Key Metrics Analysis.

Why Companies are Not Startups

Steve Blank

The Enterprise: Business Model Execution We know that a startup is a temporary organization designed to search for a repeatable and scalable business model. Every large company, whether it can articulate it or not, is executing a proven business model (s).

Startup Metrics for Pirates: SeedCamp 2009 (Sept 2009, London.

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Finding your One Metric That Matters

leananalyticsbook.com

The One Metric That Matters. One of the things Ben and I have been discussing a lot is the concept of the One Metric That Matters (OMTM) and how to focus on it. It does, however, mean that at any given time, there’s one metric you should care about above all else.

Fear of Failure and Lack of Speed In a Large Corporation

Steve Blank

And worse, even if someone does manage to start something new, our management structure has so many financial, legal and HR hurdles that every initiative needs to match our existing business financial metrics, processes and procedures. More agile competitors are starting to eat into our business. Therefore startups trade off certainty for speed, adopting “ good enough decision making ” and iterating and pivoting as they fail, learn, and discover their business model.

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This Is Why You Should Start A Subscription Box Business

YoungUpstarts

Subscription business models have been around for a pretty long time, but thanks to modern technology, this model has evolved from milk or newspapers delivery to a versatile eCommerce experience. Subscription business brings recurring revenue. It is a bootstrappable model.

Measuring What Matters: How To Pick A Good Metric

OnStartups

Ben Yoskovitz is the co-author of Lean Analytics , a new book on how to use analytics successfully in your business. We all know metrics are important. Used properly, metrics can provide key insights into our businesses that make the difference between success and failure. But as our capacity to track everything increases, and the tools to do so become easier and more prevalent, the question remains: what is a worthwhile metric to track?

Why I don’t like the LTV metric

A Smart Bear: Startups and Marketing for Geeks

This is the fifth article in a series on novel ideas for SaaS metrics, which started with The unprofitable SaaS business model trap , COC: a new metric for cancellations , The mistake of 1/c in LTV , and SSEBITDA: Steady-state profit metric.

Startup Metrics

SoCal CTO

A post by Fred Wilson pointed me to Dave McClure's Startup Metrics presentation. Normally, when I am talking to the founder of any startup trying to figure out what they need to do, one of the things I always try to do is understand their business at its core.

Blowing up the Business Plan at U.C. Berkeley Haas Business School

Steve Blank

Berkeley Haas Business School is a leader in entrepreneurship education. It has replaced how to write a business plan with hands-on Lean Startup methods. Berkeley in 2010 to run the Lester Center for Entrepreneurship in the Haas School of Business we were teaching entrepreneurship the same way as when I was a student back in 1995. The final deliverable for that class was a 30-page business plan. We had multiple business plan competitions.

Two Giant Steps Forward For Entrepreneurs

Steve Blank

Integrates Alexander Osterwalders “Business Model Canvas” as the front-end and “scorecard” for the customer discovery process. and finally it teaches a “new math” for startups: “metrics that matter.”. While MBA’s have had a stack of texts to help them “ execute ” a business model, this book joins the growing library of books for practitioners for the “search” for the business model.

SSEBITDA – A steady-state profit metric for SaaS companies

A Smart Bear: Startups and Marketing for Geeks

This is the fourth article in a series on novel ideas for SaaS metrics, which started with The unprofitable SaaS business model trap , COC: a new metric for cancellations , and The mistake of 1/c in LTV. I like this model, and we’ve used it to-date at WP Engine.

Designing startup metrics to drive successful behavior | For Entrepreneurs

www.forentrepreneurs.com

Blog About Log in Register Designing startup metrics to drive successful behavior Great companies are almost always run by great management teams. Good metrics should also be actionable, and drive successful behavior. This post is applicable to any kind of business.

How to Road-Test Your Business Model

Inc Startups

Read on to find out what they are—and how they can save you time and resources as you test your business model. Simply put, does adding $1 in sales and marketing resources generate $2+ of revenue (or users, views, clicks, or whatever the metric may be)?

Startup Metrics for Pirates (Lean Startup Circle, Jan 2010.

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The Different Worldviews of a Startup

practicetrumpstheory.com

traction (Key Metrics). Investors When investors look at your startup, they too don’t care about your solution but are weighing your startup (or business model) as an investment. Business Models Running Lean

Business Models for Social Networks: Monetizing Social Capital.

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Mastering Lean Metrics for Growth

Duct Tape Marketing

Mastering Lean Metrics for Growth written by John Jantsch read more at Duct Tape Marketing. While these are certainly core elements of any effective marketing strategy, the place we should start is with metrics. What do you say to a business owner whose one metric is revenue?

Startup Metrics That Matter (FoWA London, Oct 2009) - Master of.

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Money-Making Subscription Services (That You Can Start Too!)

Up and Running

Wouldn’t it be great if, instead of having to fight, hunt, and practically beg for each new sale, you could set up a business in such a way that all your customers paid you regularly, time and time again? See Also: Profoundly Strange Subscription Businesses (That You Could Start Too).

A new model for understanding the stages of a startup

The Startup Toolkit

So here’s another way of thinking about the stages of a startup in visual terms using the business model canvas[2]. Important Business Question #1: does anybody care at all and will they pay us? Some businesses have basically zero risk around their revenue model.

Unbalanced Business Models, or “Stick a Fork in #KLOUT

Scalable Startup

Maybe Facebook exploits more than others, but they overcompensate by giving more than they get – balancing their needs (your eyeballs and time on their ads) with providing amazing amount of previously unrealized value to your life – information, sharing, bite sized things that make you feel good or laugh, in Google’s case great tools to run your life or business. Business Development early stage startup CEO Uncategorized venture

4 Business Metrics You Can’t Afford to Ignore

Inc Startups

Profit and revenue tell you a lot--but they don't tell you everything about the health of your business. Every business focuses on and measures revenue. Every business focuses on profit and loss. That depends on your industry and business model.

Human Engineering and Emotional Intelligence for Startups

VC Cafe

Goleman added a new facet to how humans measure intelligence, which was previously generally viewed as a person’s IQ – a narrow metric revolving around linguistic and math skills. Adopting the models of Emotional Intelligence to startups.

Web 2.0 Product Management: Optimizing Metrics & Viral Growth (Dan.

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