Business Model Tips Tuesday, April 18, 2006
The executives shared the trials and tribulations of getting the business model right along with tips on what they have learned through experience.
-Innovate in one or two areas
When you start a business, look at what you do the same and what you do differently. In order to be successful, you want to do a lot of things the same way. You only want to innovate in a few key areas.
-Focus on the business basics
Ultimately businesses are simple: who will buy, what is the margin, can you protect the business from competitors. The CEO must identify the key successful factor - in social networking the key question was 'Will people invite others to join?'.
-Make the tough call
Different times call for different actions. A CEO must recognize points of inflection and morph, though it is difficult to make the call to leave a business and start something new.
-Change is normal
There are relatively few tech companies that still have business models that are the same as when the VCs were pitched.
-Test the model
The best way to test the business model is spending time with customers. They have the answers and it is much better than spending time in front of a white board.
posted by Nitin @ 6:36 AM,
1 Comments:
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At 6:11 PM,
said...
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Splendid Ideas indeed!
Great to know that you think so innovative, Nitin!
