It’s time to get going on looking at some new business ideas. Here’s the process i’m following:
Generate Business Model(s) – Create different business model variations around my concept. There are 9 building blocks to my business (see list below) but I’m going to primarily test around the value proposition (VP) block.
Experiment – I’m setting up real life quick and easy (and cheap) tests to validate the hypothesis behind my biz models. i.e. i’m testing customer responsiveness – aka “customer need”. Online and offline.
Evaluate and iterate – as i gather feedback over the next few weeks i’ll add multiple new tests and tweak the hypotheses i’m running the tests against. Once this is done i’ll make a decision on how to move forward.
I’ve given myself a budget of $2,500 to test this model and it’s needs to be completed by end of May.
Here’s a list of the component parts in the business model process i’m using – there are nine. I created a short YouTube video for each (i’need to upload the videos but i have included one as an example). I’ve done this to help myself get understanding of the process because i’m trying it out for the first time. BTW – the concept of business modeling i’m using is from a book called “Business Model Generation” by Alex Osterwalder.
Here’s the 9 building blocks (you can see my rendition of this canvas at the top of the page):
9 Building Blocks to a Business Model
Here’s one segment (Customer Segment) explained in a video i created.
The business experiment concept i’m following is a mish-mash of ideas developed by Eric Ries (Lean Start-Up) and Steve Blank (4 Steps to the Epiphany).
I’ll post a video later about Business Experiments.
I’m looking for some feedback on my business model as i move forward, so please get involved. If you sign up for my newsletter, you’ll be added to the test group (see top right of this page to sign up).
Why, what about, where and who cares anyway. All these are good questions crammed into a single sentence (i’m sure some literary type can tell me the name for it). I’ve pondered a lot why i dont blog, if i should, what should i write about and who would care about it anyway (and why should i care who anyway). Like anything in life, when something has a purpose and a focus it becomes more meaningful because it has a context that makes it relevant to a given group of people, no matter how small or large. So far i’ve never gotten this raison d’être for writing and much of this has sprung from an acute case of subject idea ADD. At the end of the day, it comes down to relevance and picking something. I would rather be relevant to just one person by concentrating on just one area than irrelevant to the everyone by rambling all over the place.
So, as much for myself as anyone else (there’s my guaranteed one person at least) i want to talk about what it’s like to go through looking, finding and building a new business. I’ve already had the one smash hit: building and selling a .com in the frenzy of 2000 when Monopoly ceased to become just a board game (see my linkedin for more), almost done it again with a second startup (work in progress at Vocalocity) and had a smattering of other projects (like Fizzbee) but since last October i’ve been full on looking for my next thing. Is it a case of once you’re lucky, twice you’re good (the book)? Hmmm, we’ll see.
Without doubt, starting your own thing is not something conjured out of thin air. The major universal force working against you, is that most good business ideas come out of organic growth and a real life a-ha when doing something while sizing up the fruit in Wholefoods; they are not manufactured synthetically inside our own cerebral boxes. So given that, here’s some of my experiences of trying to do it again. It’s stimulating, frustrating, rewarding, demoralizing and interspersed with moments of utter clarity and complete confusion (sometimes shared between breakfast and lunch); i’m great; i’m crap; this is it, no it’s not. You’ll get the idea and hopefully it’ll be enlightening and maybe useful for the army of others going through the same…
Walking along a beach in Tampa one spring day in 1998 i remember getting so frustrated with the new gadget i was cradling i hurled it in the ocean (i smartly retrieved it racked with non-greenness remorse). The offending article and butt of my malice was one of the first MP3 players called the Rio, made by Diamond and it kept freezing. Yes, it was the size of a frizzby and practically needed a set of wheels for transportation but it did allow me to walk around listening to my newly ‘acquired’ songs complements of Napster. So the Rio was buried at some stage in the graveyard of tech gadgets that didn’t make it. It didn’t help that Diamond was also sued by the record industry.
This Rio - Complete with slim parallel port and optional wheels - not this Rio.
Flash forward to 2003 and “a 1000 songs in your pocket” arrives. The super hero of digital music swings into action to save the world: the iPod. Or to be more accurate the iPod and iTunes side by side. Just 3 years later iPod/iTunes had become a $10 billion juggernaut. So what happened? Well, it’s all about pairs, the ying and yang. The Rio was a Lennon without a McCartney, a bow without an arrow, a Keegan without a Toshac (obscure 70′s soccer analogy. Tip – think Liverpool ). Apple’s genius – beyond flawless design and super hype – was to launch a music player only when they could provide the music that was to play on it as well. Getting that music was no mean feet, i know because I spent a hair pulling 12 months trying to secure the music library’s of the major lables for the company i was at in 2ooo. Apple waited though and made the music library an equal part of the package.
The lesson herein lies and it is something sorely missed by a mirth of companies everyday. Apple recognized that people weren’t looking for a gadget that played MP3 files, they were looking for a way to listen to their music – music they owned legally – when they were on the move (“a 1000 songs in your pocket”). That was need, that was what the customer wanted. Defining a business model in terms of a customer need, instead of ‘designing a product’ looking for a need, is at the core of all successful businesses.
When Ratan Tata of the Tata Group looked out over the chaotic streets of Mumbai and saw a whole families stacked atop a single moped, he saw a clear need. Provide a small car priced so a family could afford it. The Nano, the worlds cheapest car at $2500, does just that. And the name, well it was nearly called the Pod instead.
The swollen tick comes with a foot pump for inflating
Only if businesses would first state the customer need and then get creative over product design and not the other way around; we’d all save a lot of chaos and wasted money. Ask the wife riding side-saddle on the rear wheel.
