The Business Model Canvas Can Get Your Startup Funded

Startup Professionals Musings

An effective tool I see used more and more, as a prelude to a more detailed business plan, is the Business Model Canvas , first introduced by Alexander Osterwalder back in 2008. A business without well-defined customers is never fundable.

6 Ways Startups Are Fooled By Prior Business Models

Startup Professionals Musings

As an entrepreneur mentor and startup investor, I see with sadness the 50 to 90 percent that fail. Many are just not facing the reality that their passion had a critical business flaw. Physically or emotionally moving yourself above the business.

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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.

Subscription Business Models Are Startup Favorites

Startup Professionals Musings

Every new business quickly realizes that revenue coming in every period on a committed basis is the Holy Grail to survival and growth. Thus the subscription model (low fixed monthly payments), is rapidly becoming the norm for new products and services. All-you-can-eat content model.

7 Steps For Establishing The Right Business Model

Startup Professionals Musings

Most technical entrepreneurs focus hard on building an innovative product, but forget that an elegant solution doesn’t automatically translate into a successful business. In the investment community, this work is called proving the business model.

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% Let’s run an example, taken from real numbers from a startup I recently spoke with.

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. I wish the modern startup community would understand the mindset that gets a company to this point, and resist it.

A Valid Business Model Requires Real Customer Sales

Gust

This rather crude expression weighs heavily on the mind of all good startup founders, no matter how confident they appear. The real milestone, proving the business model, is that first product sold for full price to a total stranger, leaving him happy. Image via Pets.Answers.com.

Facebook’s business model

Chris Dixon

Startups usually succeed because of a single major product or business innovation. Google is unusual in that they succeeded because of two major innovations: their core search product, and their keyword advertising business model. Back in 2000, when Google was wildly popular but generating no revenue, the conventional wisdom was that their business model was uncertain. Then Overture invented keyword advertising and Google adopted the same model.

Who Dares Wins – The 2nd Annual International Business Model Competition

Steve Blank

Alexander Osterwalder and I spent last week in Salt Lake City, Utah as judges at the 2 nd Annual International Business Model Competition , hosted by Professor Nathan Furr , and his team at the BYU Center for Entrepreneurship. The Business Plan ?-

How To Run a Business Model Hackathon

Instigator Blog

At Year One Labs we’ve also found hackathons to be fairly instructive in terms of finding quality entrepreneurs: the hackathon is a microcosm of what it takes to build a startup. In my recent post on lessons learned launching a lean startup accelerator I made reference to another kind of hackathon — the Business Model Hackathon — as a tool we’ve used to vet entrepreneurs, find interesting people and learn.

Solving the "marketplace" business model

A Smart Bear: Startups and Marketing for Geeks

A sizable percentage of Capital Factory startup submissions take the form of the "marketplace." In fact, 3 of the 10 selected companies from the past two years has followed this business model. What are other advantages or pitfalls of marketplace-style businesses?

The Art of the Business Model

How to Change the World

A good business model forces you to answer two simple questions: “Who has your money in their pockets?” You’ll tweak your business model constantly–in fact, it’s scary if you don’t change your model or do some major tweaking along the way. If you can’t describe your business model in ten words or less, you don’t have a business model. Business language does not make a business model.

A Valid Business Model Requires Real Customer Sales

Startup Professionals Musings

This rather crude expression weighs heavily on the mind of all good startup founders, no matter how confident they appear. The real milestone, proving the business model, is that first product sold for full price to a total stranger, leaving him happy.

Some Startups Forget to Validate a Business Model

Startup Professionals Musings

Many entrepreneurs work hard on the proof of concept (technical), but skip any proof of the business model (revenue flow). Proving the business model requires a different approach than proving the technical concept. So how do you go about proving the business model?

7 Business Model Personalities

Inc Startups

Business models are like instruction manuals for your business. A well-defined business model should clearly articulate your function in the market, including how you make money, what inputs you depend upon, who your target customers are, and what value you are creating for them.

Test Your Business Model Against These 10 Elements

Startup Professionals Musings

You can’t succeed in business without an operational model that delivers value to customers at a reasonable price, with an underlying cost that allows you to make a profit. Revenue model. Investors will want to understand your business model very well and very early.

Deep dive: Cancellation rate in SaaS business models

A Smart Bear: Startups and Marketing for Geeks

These three factors are, of course, critical to a healthy, growing startup, and yet individually they’re impossible to measure as precisely and easily as cancellation rate. (I’ve I guess that last sentence sounded like abstract business-speak drivel.

10 Top Business Models for New Ventures Today

Startup Professionals Musings

One of the toughest decisions for a startup is how to price their product or service. The implications of the decision you make are huge, defining your brand image, your funding requirements, and your long-term business viability. Freemium” model. Cost-based model.

Why Startups are Agile and Opportunistic – Pivoting the Business Model

Steve Blank

Startups are the search to find order in chaos. At a board meeting last week I watched as the young startup CEO delivered bad news. The Search for the Business Model. A startup is an organization formed to search for a repeatable and scalable business model.

Agile 90

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. Enter the Lean Startup methodology, championed by Eric Ries.

Technical Product Elegance is Not a Business Model

Startup Professionals Musings

Many entrepreneurs work hard on the proof of concept (technical), but skip any proof of the business model (revenue flow). Proving the business model requires a different approach than proving the technical concept. So how do you go about proving the business model?

The LeanLaunch Pad at Stanford – Class 2: Business Model Hypotheses

Steve Blank

Our new Stanford Lean LaunchPad class was an experiment in a new model of teaching startup entrepreneurship. Come up with ways to test each of the 9 business model canvas hypotheses. Consider if their business worth pursuing? Their business was a robot lawn mower.

Business models for ecommerce 2.0

The Equity Kicker

This is a good framework to think about whether a startup will be able to compete with Amazon. Andy Dunn from Bonobos wrote yesterday about the dominance of Amazon in what he calls ecommerce 1.0

Business Modeling is Process, not an Event

The Entrepreneurial Mind

Developing a sound business model is key to the successful launch of a business. But you should never assume the business modeling is finished once the business begins to grow. Keeping a business model current is critical for long-term success. A business model helps to ensure that all of the "moving parts" of the company are working together. When we expanded our health-care business from Raleigh into Charlotte, N.C.,

It Takes a Customer Sale to Prove a Business Model

Startup Professionals Musings

This rather crude expression weighs heavily on the mind of all good startup founders, no matter how confident they appear. The real milestone, proving the business model, is that first product sold for full price to a total stranger, leaving him happy.

E-Commerce Business Modeling vs Trailblazing

The Startup Magazine

Problem: The problem is the success rate is so low, that the scrap heap of business owners on that pile may be higher than any other. This is where good and qualified potential business owners usually meet their doom. Solution: Reverse engineer a successful business first.

Entrepreneurs Need Focus on Their Business Model

Startup Professionals Musings

Many entrepreneurs work hard on the proof of concept (technical), but skip any proof of the business model (revenue flow). Proving the business model requires a different approach than proving the technical concept. So how do you go about proving the business model?

Guest Post: Introducing The Customer Happiness Canvas

Grasshopper Herder

Customer Development Lean Startup Teamwork & Leadership business model canvas lean startup Product Management user experienceThe Customer Happiness Canvas is a tool for teams to visualize strategies for getting and keeping customers.

Venture Cyclist: Four Reasons for a Business Model

Venture Cyclist

Four Reasons for a Business Model. This week at Techstars during my office hours sessions, I was asked questions by several teams which each time led to the same place: please draw a business model diagram for me. Four Reasons for a Business Model.

Why Companies are Not Startups

Steve Blank

In the last few years we’ve recognized that a startup is not a smaller version of a large company. We’re now learning that companies are not larger versions of startups. Every large company, whether it can articulate it or not, is executing a proven business model (s).

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

Ten Questions to Ensure a Viable Business Model

Startup Professionals Musings

You can’t succeed in business without an operational model that delivers value to customers at a reasonable price, with an underlying cost that allows you to make a profit. Revenue model. Investors will want to understand your business model very well and very early.

Free Reprints of “Why the Lean Startup Changes Everything”

Steve Blank

The Harvard Business Review is offering free reprints of the May 2013 cover article, “ Why the Lean Startup Changes Everything “ Available here.

Lean 152

10,000 Startups – Startup Weekend Next

Steve Blank

Today we are announcing the biggest entrepreneurial program ever launched – Startup Weekend Next. Our goal– to inspire, educate and empower hundred’s of thousands of entrepreneurs and help create 10,000 startups. The result – Startup Weekend Next.

Creating Startup Success – Customer Development + Business Model Design

Steve Blank

In previous posts I’ve talked about what the combination of Business Model Design, Customer Development and Agile Methodologies mean to startups and intrapreneurs in large companies; it’s the beginning of entrepreneurship as a science with its own rules and methodologies. My public talk at Columbia University was part of their Science, Technology, Engineering and Math Startup lecture series. Filed under: Business Model versus Business Plan , Customer Development.

Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

For decades large companies have gone shopping in Silicon Valley for startups. What can companies learn from others’ failed efforts to integrate startups into large companies? acquire startups for their teams (and discard the product).

Entrepreneurship as a Science – The Business Model/Customer Development Stack

Steve Blank

It’s the combination of Business Model Design and Customer Development. Business Model Design. Today every business organization from startup to large company uses the words “business model.” Business Model Canvas.

Investors Reject Plans With No Clear Business Model

Startup Professionals Musings

For survival, the objective of every business should be to bring in revenues which exceed their costs. Yet I continue to see business plans, or even talk to founders, and can’t find the specifics of the business model anywhere. eCommerce model. Shopkeeper model.

How Do You Select A Revenue Model For Your Startup?

Startup Professionals Musings

One of the toughest decisions for a startup is how to price their product or service. The implications of the decision you make are huge, defining your brand image, your funding requirements, and your long-term business viability. Freemium model. Cost-based model.