Entrepreneurship Archives - Another point of view

Posted on April 24, 2023January 11, 2024 by Marcus Donovan

Grind #6: Only 3 steps to find your perfect business model

Introduction

Choosing the right business model for your startup is one of the most important decisions you’ll make. It’s also one that many entrepreneurs overlook or ignore because they’re focused on other areas of their business. But if you want to succeed in business, it’s critical that you consider this aspect from the very beginning.

There are many different types of business models that can help you start a profitable business — everything from being an employee and working for someone else to becoming self-employed or starting your own company. The best way to find out which one works best for your situation is by doing some research and analyzing the pros and cons of each option available to you:

Choosing the right business model for your startup is one of the most important decisions you’ll make.

Choosing the right business model for your startup is one of the most important decisions you’ll make. A flawed business model can sink an otherwise promising company, while a solid one may be all that separates success from failure.

Your first step should be to determine whether or not your product or service has an existing market, and if so, how large it is. If there’s already demand for what you’re offering, then great–you can move on with confidence! But if there isn’t enough demand in this area yet (or if there never will be), then it might be time to rethink things before getting too deep into development work on something no one wants or needs.

Once you’ve established that there is indeed a need for whatever it is that makes up the core of your business model idea, ask yourself these questions:

There are many different types of business models that can help you start a profitable business.

A business model is a set of processes and procedures that describes how your company will operate. It can be thought of as the blueprint for your startup, outlining all aspects of how you’re going to deliver value to customers and make money in the process.

There are many different types of business models that can help you start a profitable business. Some are more suited than others depending on what type of product or service you want to offer, but it’s important not just for understanding which one might work best for your company but also because this knowledge will help guide other decisions throughout the early days when things may seem unclear or unclear at first glance (and even after).

Here’s how to find the best business model for your startup.

To find the best business model for your startup, here are three steps to consider:

Identify the target market for your product or service. Who are you selling to? Are they consumers? Businesses? Both?
Examine customer needs and problems that you can solve with your product or service. What do customers want from their products or services, and how can you deliver it better than anyone else out there?
Look at existing products and services that offer solutions similar to yours and see what they offer customers in terms of benefits, pricing, and incentives or rewards

Identify the target market for your product or service.

Before you can start to find a business model that is right for your startup, it’s important to identify the target market for your product or service. This is because it will help determine which business models are best suited for you.

For example, if the majority of people in your target market have very little money but they need something very specific (e.g., an app that helps them find free Wi-Fi), then licensing may be more appropriate than selling software as a service (SaaS). On the other hand, if most of those same people have plenty of cash but aren’t willing to pay anything at all (e.g., affluent millennials), then SaaS could be better because there would be no point in offering free versions or lower prices on paid ones.*

Examine customer needs and problems that you can solve with your product or service.

To find the right business model, you need to consider what customers are looking for. What do they need and how can you solve these problems?

Consider what problems your product or service will solve. How will it make them better off than they were before using your product or service? These are the things that make up value in the eyes of a customer–and when a customer values something, he or she is likely willing to pay money for it.

Look at existing products and services that offer solutions similar to yours and see what they offer customers in terms of benefits, pricing, and incentives or rewards.

Look at existing products and services that offer solutions similar to yours and see what they offer customers in terms of benefits, pricing, and incentives or rewards.
See what the competition is doing. Check out their websites, read their press releases or blogs, watch some interviews with them or listen to podcasts featuring them on iTunes or Stitcher Radio (or whatever your favorite podcast app is). You’ll learn a lot by doing this research without even talking to people who work at these companies!

Brainstorm with other people who are involved with your startup to brainstorm ideas for new ways to make money from your market.

You can’t do this alone. You have to involve other people who are involved with your startup from the very beginning. The more people you involve, the more ideas you’ll generate and the more buy-in you’ll get from those involved in brainstorming sessions.

The first step is to find someone who understands how businesses make money and has experience with startups or small businesses as an employee or consultant (or both). This person will be able to help you identify which models could work best for your venture, based on their knowledge of other companies’ successes and failures.

Read case studies from other successful companies that have used different types of business models in similar situations as yours.

You should also look at case studies from other companies that have used different types of business models in similar situations as yours. These can be found on the internet, or you can ask your peers and mentors to share their experiences with you.

Case studies are useful because they show you how other companies have solved similar problems, what strategies worked well for them and what mistakes they made along the way to success. They’ll also tell you about the ways they’ve approached marketing, business models and more–all valuable information when deciding which method will work best for your startup!

Your passion, skillset, location and more should all play a role in determining which type is right for you

When it comes to choosing the right business model, there are many factors to consider. Your passion, skillset and location should all play a role in determining which type is right for you.

Your passion

It’s important that you’re able to find enjoyment in what you do every day. If not, then chances are high that your startup will fail before it even gets off the ground–or at least fail at its full potential. And since most startups don’t have any external funding (yet), there’s no room for error! So make sure that whatever concept or idea(s) behind your business really excite and inspire you–and then go after those dreams with everything else on this list taken care of as well!

Your skillset

While passion is certainly an important aspect when starting out on any new venture (and even more so if it involves starting over again), having relevant experience can also help tremendously when considering how long-term success might look like down the road.”

Conclusion

The business model you choose can make or break your startup. It’s important to do your research and think about every aspect of your company before making this decision. Once you have an idea of what type of business model would work best for your company, go ahead and give it a try! You may need to tweak things here or there along the way, but at least now you know where to start from when building up something new

Posted on April 15, 2023January 11, 2024 by Marcus Donovan

Grind #5: High Output Management with 1000 True Fans

The 1000 True Fans idea of Kevin Kelly and the High Output Management book by Andrew Grove are two concepts that have influenced the way many entrepreneurs and managers think about businesses. Do you know why is that? Let’s dive in and see the relation between the two and the most important concepts.

The 1000 True Fans idea was first proposed in 2008 by Kevin Kelly, the founding editor of Wired magazine. His concept is that to be a successful creator, you don’t need millions of customers or clients, but only thousands of true fans. A true fan is defined as a fan that will buy anything you produce, whether it is a book, a song, a software, or a service. Kelly estimated that if you have roughly a thousand of true fans who each spend $100 per year on your products, you can make a living of $100,000 per year. He also suggested that you need to have a direct relationship with your fans, so that you can keep all of their support and feedback.

The High Output Management book was written in 1983 by Andrew Grove, the former chairman and CEO of Intel. It is a practical guide for creating and running a company. The book is based on Grove’s experiences at one of America’s leading technology companies. Grove covers techniques for creating highly productive teams, motivating employees, delegating tasks, making decisions, setting goals, measuring performance, and dealing with crises. He also introduces some key concepts such as managerial leverage, task-relevant maturity, hybrid organizations, and OKRs (Objectives and Key Results).

Both concepts emphasize the importance of focusing on quality over quantity, and on delivering value to your customers. They both recognize the role of feedback and communication in improving your products and services. However, they differ in their scope and perspective. The 1000 True Fans idea is more applicable to creators or small businesses who want to make a living from their passion and creativity. The High Output Management book is more relevant for managers or leaders who want to grow and scale their organizations and achieve high performance.

The most important concepts from each of them are:

1000 True Fans: A true fan is someone who will buy anything you produce, no matter what. You need to find and cultivate your true fans by creating valuable products or services that resonate with them. You also need to have a direct relationship with your fans, so that you can get their feedback and support. You don’t need millions of fans to be successful. A thousand true fans who will spend enough money on your products or services to sustain your living are enough.
High Output Management: The output of a manager is the output of the organizational units under his or her supervision. You need to increase your output by increasing your managerial leverage, which is the ratio of output generated by your organization to the work you put in. You can increase your leverage by choosing high-leverage activities such as teaching, coaching, delegating, planning, and decision making. You also need to match your management style to the task-relevant maturity of your subordinates. This is their ability and willingness to perform a specific task without supervision. You need to create hybrid organizations that combine both mission-oriented and functional structures to optimize efficiency and innovation. You need to set clear and measurable objectives and key results for yourself and your organization. To track progress and performance you need to review them regularly.

While the two works approach business and management from different angles, there are some important connections between them. The “1,000 True Fans” concept emphasizes the importance of cultivating a dedicated and engaged fanbase. The same can be applied to building a loyal customer base for a business. “High Output Management” highlights the importance of effective communication, people management, and operations management, which are critical to building and maintaining a successful business over the long term.

From one point of view, the two texts address various areas of business and management. From the perspective of another angel, I believe they share important themes that are valuable for entrepreneurs and business executives who want to develop sustainable and profitable businesses. Businesses and entrepreneurs can achieve long-term success and financial stability by focusing on developing a loyal client base and effectively managing people and processes.

Posted on October 28, 2021January 11, 2024 by Marcus Donovan

Grind #1: How to grow your business the smart way?

“Actually startups take off because the founders make them take off”.

Do things that don’t scale. Yes, scaling is important but sometime it is overlooked or just misunderstood. I saw starting business falling just because they focus on scaling and scaling strategies too early in their stage. Sure, for some businesses or aspects of the business, thinking about scaling from the beginning is essential, but for others, it is only necessary to a certain extent. For technological company it might be vital to scale fast but the grocery store where you go to buy your food going back home or the small bakery that started on the next corner it is not a must for survival. But I think both of them share some common trace in the their early stage when they are new and fragile. And they need to scale an recruit customers.
Paul Graham‘s points are all in the direction that even if you need to scale you have to do your daily unscalable staff wisely. Whether a business will scale or not depends on many factors and one of the most important is to know your customers and your process (for the tech company, for the grocery and for the bakery). As is said in the article “Actually startups take off because the founders make them take off“. Scaling is the result of understating your business and processes and improve them over time. And my experience proves this is so true “But for a startup to succeed, at least one founder (usually the CEO) will have to spend a lot of time on sales and marketing.“
The concept is very well laid out and is one of those that you might want to reread periodically.
I also beleive that doing things that don’t scale might be good for your health and well being too.

“You don’t need millions of dollars or millions of customers, millions of clients or millions of fans.”

1000 true fans – In the era of social media everybody wants to have fans. And not just few but as much as possible. But do you really need hundreds of thousands of fans? The correct answer should be “Depends” but if you are aiming a decent living 1000 fans might be sufficient. But they must be 1000 true fans! It is an interesting concept from Kevin Kelly. And there are business ko-fi.com and substack.com build to serve people exploring this concept like. I think that the concept has also build-in the fundamentals of every business – that it should satisfy its shareholders in order to continue doing it and has to pay its expenses and to its employees.
“The number 1,000 is not absolute. Its significance is in its rough order of magnitude — three orders less than a million. The actual number has to be adjusted for each person. If you are able to only earn $50 per year per true fan, then you need 2,000. (Likewise if you can sell $200 per year, you need only 500 true fans.) Or you may need only $75K per year to live on, so you adjust downward. Or if you are a duet, or have a partner, then you need to multiply by 2 to get 2,000 fans. For a team, you need to multiply further. But the good news is that the increase in the size of your true-fan base is geometric and linear in proportion to the size of the team; if you increase the team by 33% you only need to increase your fan base by 33%.“
I think another suitable headline for this article might be $100K per person in the business. Even though Kelly speaks about creators I think that this concept can scale and be applied in small business as well because he speaks about “$100 profit from each true fan” not just income. And it might be looked as doorway to flattering salaries among people in a company.