Abstract: reliable business model may not be successful, but not necessarily reliable business model will not succeed, this is a basic business and investment logic.
once said in the column: the founding team is more important than the business model, but this does not mean that the business model is not important. The success of an entrepreneurial project, in addition to people fly, but also things fly, this is the business model. Reliable business model may not be successful, but not necessarily reliable business model will not succeed, this is a basic business and investment logic.
first to define what is the business model. The term business model has been overused, and many entrepreneurs are not clear about the concept. Many people tend to say that the business model is not how to make money? Wrong! How to make money, the academic name is profit model, it is just a part of the business model. Clayton, a professor at Harvard Business School, ·, has a classic definition of the business model, the business model is how to create and deliver customer value and corporate value. This is a system of value!
subdivision, a business model includes four elements – customer value proposition, profit model, key resources and critical processes. If you use several questions to determine whether a venture is reliable, can ask the following four questions: first, what can you bring value to what specific customers? Second, you have what resources and capabilities to create value for customers? Third, your profit model (income and cost structures) fourth, how do you? Continue to create value for customers and the company
if you use these four questions to ask entrepreneurs, you will find that most entrepreneurs do not want to understand. Drink chicken soup inspirational entrepreneurs love most about platform story: "I want to be a platform for tens of millions of users, like Tencent and Alibaba, and then a pole inserted above can bloom, the money is not a problem, please vote for me it’s millions……" But now investors have been fooled, they believe the data rather than the model, even if the model also requires very precise analysis.
The purpose of
enterprise is to create customers. The first group enterprise must face is: who is your target customers? You meet what they need? For these enterprises, these two problems although think more clearly better, but also need as soon as possible with the facts to prove that the two assumptions are reasonable. Many venture customer needs of entrepreneurs are out of their own imagination, often is not true, this project basically is no doubt, even lucky to get the investment, also burn only.
technology startups are most likely to fall into this misunderstanding. They are often proud of a cool technology, with good technology, market demand will follow. In fact, the market demand and leading technology is different, many leading technology cannot be converted into products, even if successful conversion market size is very small. 3D printing is now very popular, for example, this technology has been developed for 30 years