What's your Business Model?
Many an entrepreneur have come up with a brilliant idea and gone about the painstaking business of developing it only to come to the realization that there’s no sound business model behind it, or the business model is not sustainable. The problem is significant among tech startups where the founder has a great vision for a technology product or service but fails to adequately answer the questions of just how they will go about creating, delivering and capturing value.
Then again, we find many tech companies have weak business models but are often over-valued, in comparison to the revenues and profits they’re bringing in.
The business model is a critical component that investors look for when evaluating a potential investment. What’s the value of having a sound business model? Is it necessary to have one? What is a business model exactly anyway? What are classic business models you can implement? How do develop one if you don’t have one? Or how do you strengthen your existing model?