Startup Business Modelling explained
Like many Tech startups, WorkTech startups and scaleups often work according to the Lean Startup principle
They use a Lean Business Canvas like the model below, in a permanent way. By constantly questioning the company and the product in order to maintain its unique value.
"The Lean Startup Method is not about cost, it is about speed." - Eric Ries
The exercise that gets the most passion out of the founders usually is describing the problem, the existing alternatives, the solution, the key process indicators, the unique value proposition, the elevator pitch, the unique competitive advantage, the channels you will use to /customers and who these ideal customers/users are.
Despite Eric Ries' statement above, the necessary exercise also is to map out the costs needed to achieve those goals and to estimate the revenue one will make per sales channel. What could be the maximum turnover, or what is the maximum approachable market share? Answering these questions however, will save time and efforts.
Market information
In order not to experience the 4 phases in the life cycle of a WorkTech startup as "growing pains", market information is indispensable. The speed with which this is obtained determines the speed with which the WorkTech startup meets the expectations of the target audience to such an extent that they are willing to pay for it.
For every phase of a startup, having the right market information is therefore crucial to be able to make decisions with confidence and to continue the development of a startup into a mature, sustainable business.
But, what does one actually mean by market information? Knowing what it is and having access to it will give startups and scale-ups a competitive edge.
A. Company information about the competitors and their product(s)
Having a feel for the competition is certainly of added value and I am not just claiming that.
"You have to start with the basic premise that you need to know what your competition is doing." - Guy Kawasaki
Having an overview of their investments, organizational changes, cooperation strategy(s), takeovers and their key figures is inspiring to work for one's own company. Information about the pricing, the product story, the specifications and possibly their cost structure also helps your company to determine its own unique selling proposition (USP).
B. Current market information and insight into (future) clientele
Doing business in the same market without knowledge of the market is like going to the North Pole to sell refrigerators to Eskimos. You have to be cut from very good sales stuff to be able to do that (and be able to withstand the cold).
"The ability to learn faster than your competitors, may be the only sustainable competitive advantage." - Arie de Geus
Understanding the WorkTech market, its size and scope, the predictions, the niches and the trends is of paramount importance to spot opportunities, respond to (new) needs or keep the product story up to date.
Having insight into your (future) customers and partners also helps to set up and maintain lasting relationships, which you definitely need as a startup. Ask questions like "What brands are they using now? Why? Are they loyal to it? Why? Are they aware of other brands? Why (not)?" etc.
To sum it up
Successful startups search and find their potential quickly, strategically and systematically by providing their business with the right market information, learning from this and exploiting the competitive advantage!
Do you need support with your WorkTech startup or scale-up? Then don't hesitate to reach out to me.