Success U — Business Model Key Questions

About 110 Series A Entrepreneurs have formed into a collaborative through Montgomery & Associates Law Firm. A few of us industry experts are doing “faculty sessions” where we teach the essentials with the idea that quick, fast bursts of what really matters will help short-cut the learning curve and accelerate success. So a few weeks ago, I spoke at what is now called SuccessU (name is under construction) regarding Business Models, and the following are the video clips and notes from the talk. A PDF is available at the bottom of this entry.

Part 1:

Key Business Strategy
Offer: “Are you solving an Aspirin Problem”
What compelling problem does your product solve for them? (We’re talking about a problem that actually causes pain, not a mild annoyance.)

  • Do they know they have the problem, and do they care? (The tech industry is wonderful at retrofitting imaginary problems to features that engineers wanted to build anyway.)
  • Seriously, do customers really care? Enough to spend money on a solution?
  • Does your product, need an ecosystem to, solve that problem?

Competitive Differentiation: “what are you doing that can’t be copied?”
This could be operational excellence, customer intimacy, innovation / rate of, ecosystem etc.

  • What is it?
  • What could be the leading indicators that the market is changing?

Customer / Market: “Who is your customer, not?”
Who, specifically, is the customer for this product? (Note: “young people” does not count as a target market, neither does “professionals.” Be specific about their lives and needs.)

  • If you are not repulsing somebody, you’re not doing a good job

Part 2:

Pricing / Financial Model: “Do you have a realistic market structure?”
What is the more economical blend of sales and marketing resources to tackle each stage of buying process

  • Has this model been created or are you doing it for the first time?
  • What scale does Revenue generation need to reach? Are you investing enough to get there?
  • Have you realistically looked at what is the right price points, and where price plays in the consideration process?

Go to Market: “Will product flow to market easily?”
What is the unique price or value we can derive?

  • Do we have the right value proposition in mind on what problem it solves?
  • Is this a new market, an existing market, and so what do are the requirements of investment in awareness, consideration, purchase
  • What are the right channel partners for this product? Have I got a motivated channel? If not, what do I need to do to fix it?
  • What are campaigns, strategies, tactics that will generate interest and leads?
  • Am I doing effective (high ROI) campaigns? What’s my cost per lead?
  • Am I generating enough leads for sales? How long is the sales cycle to support the pipeline?
  • Do we have a right share of voice in the market?
  • Am I enabling viral marketing?
  • Using web 2.0 methods?

Delivery: “Do I have the right skills on the team to manage what I need to do in-house vs. outsource?”

  • Do I know what to stop doing to do what I need to do well.
  • Have I found a way to align sales compensation, team compensation to create focus

Success U — Business Model Key Questions

0 Responses:

  1. Michael T. Ashby. April 1, 2008 at 11:21 am  |  

    Nice talk Nilofer, you’ve really given me a lot to think about. Thank you for including your slide notes as well.

  2. Marsha Keeffer. August 6, 2008 at 3:02 pm  |  

    Captured the ethos of the day perfectly.


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