Like I mention in previous post, after my discussion with zyy.sg. I decided to read up and understand more about the importance of business models for Startups. So I picked up the book bu Joel Kurtzman “Startups that work”.
This is a pretty basic book, it runs through the research that the author conducted for Startups during a 4 year period and tries to determine the 10 critical factors that make or break Startups. if you are thinking that you would be getting in-depth insights from this book, than I think you can just easily browse through the book and you will have a good idea of the 10 factors > no need for detailed reading or simply google > would be a better idea too and you would find steveblank.com > he gives very interesting insights on startups
Here I like to share what I think I understand after reading the book.
- you got to have a map >(means) you need to have a direction, an objective ie how to use my funds efficiently, what should I do in 1st phase
- Nothing ever happens without great people > you need a great management team of dynamic abilities, ie a sales person and a technology person
- Boards must create value > VCs also plays an important in Startups, they do not just pump in $$ but they must also contribute in mentoring the founders
- Cashflow > most Startups die NOT because of lack of funds but because of the MISUSE of funds
- you can only grow as big as your market > determine your market size, a good example UNICA software building a system for system
- Competitive positioning > understand your competitors
- Business models > it is not what you do but how you do > it is also one of the factors which will allow a Startup to excel out from its competitors even if it does not have a 1st mover advantage Eg. Google > they started out later than yahoo!
- product development > innovations!
- customer acquisition > CRM > know what your customers wants > talk to them research !
- channel alliances > partnerships > you dun walk alone eg. a start-up in china call No1. Shop > they do online grocery they first started out poorly but once they managed to develop a partnership with sina.com their customers starts to grow.
Another item that I would like to share is why soleilwater fail to startup? > with reference to the factors above but I think I will do it in another post. Because I am tired now 🙂
Eat to live another day… I will be back