Dear Friends ,
IF you are able to learn from your failures ,a Failed Startup can give you with wealth of practical wisdom opening infinite doors of opportunity leading to success.
i had two failed startups in span of 4 Years giving me valuable insights. Here are my learnings.
You will always run into a Brick wall No matter what you do if your Business model is flawed or weak.
One should look for a strong and sustainable business model with following attributes.
Image source :Choosing right business model
ppt by Prashant chauhan prowebb@gmail.com
A)“I DESPERATELY NEED IT”
Mission Critical Product or Services,
Business model should deliver mission critical product/ Service to target Market
example: Sand Supplier is mission critical to real estate industry.
B) VALUE PROPOSITION IS KING
“generate value of 10x against 1x spent by your buyer”.
A Business model should deliver product or services that have High Value proposition vs the price.
Example: A Laptop delivers very high value proposition to its users against price.
C) YOU SHOULD BE ABLE TO MILK COWS EVERY DAY
“Only Strong customer life time value can make a sustainable business”
A Business model should deliver product/ services with High customer life cycle value (C.L.T.V)you should be able to milk same customers again and again
Eample:
Mobile and banking business milk their customers again and again creating a huge Customer Lifetime value.
D) “BECOME A SMALL FISH IN OCEAN VS BECOMING A BIG FISH IN A LAKE”,
“Never ever play in sub scaled Markets”.
A business model should deliver product/services that have huge Market Size which is always growing,if you are a player in such market even capturing 1 % market share will make you significantly big
Example :
Retail and Food industry has a huge market size >(500Bn USD) which is ever growing .
IF you build your Business around a strong and sustainable business model.
Most of other things as
Marketing,
Operations,
Finances,
Hr etc
can be take care of as they are Obvious and process driven.
Kindly share what you have learned .
Best Regards
Prashant chauhan.