Two of Australia’s hottest startups, Unlockd and Prospa, built a business model reliant on a single, external force which ultimately left them vulnerable.
The core purpose of a startup is to define a new and unique value proposition, as well as validate the potential for a truly scalable business model. Steve Blank captured this well in what is now one of the most widely used definitions of a startup, “a temporary organisation designed to search for a repeatable and scalable business model.”
Nathan Kinch believes a business model is better defined as how a company defines, creates, delivers, manages and optimises its value proposition.
A pair of unmatching black socks is seemingly insignificant. But it was the beginning of an impeccable business model for Samy Liechti.
Back in 1988, Flava Flav – the clock-necklace adorned, self-proclaimed ‘hype man’ for legendary hip-hop group Public Enemy – told us not to believe the hype. He was having a go at the media and critics in light of the group’s negative press. He could have just as easily been referring to the mobile apps of a quarter century later.
Currently, your business is doing not much. Because you’ve done all the hard legwork already. You built a framework for your business which means that operations of the business is literally one day per month. Even that one day you don’t do anything anymore except log onto online banking to see how much money you’ve made.