So, you’re thinking of starting a business? If so, think again! Better still, check!
Before you get carried away by your passion for your ‘obviously brilliant’ idea/invention and start spending loads of time and money trying to make it a reality, take off your rose-tinted glasses and read and take seriously the following.
The Seven Factors of a successful Business Model are:
F1 – A Job To Be Done – you are fulfilling a need with your solution.
F2 – A Complete Solution – is provided through a Unique Value Proposition.
F3 – Prospective Customers Agree – their Job To Be Done is best satisfied with your solution.
F4 – Prospective Customers Are Prepared To Pay – the price that you need.
F5 – Prospective Customers Exist – in enough numbers for growth and sustainability.
F6 – Customers Advocate – because they are so pleased with your solution, they in effect sell your solution for you.
F7 – Enduring Transient Competitive Advantage – is the ultimate goal, as a sustainable competitive advantage is rare long-term.
- Customers buy value (via solutions), not products and services as such, and
- It is customers who decide what is valuable to them, not you.
- We need to ensure that customer’s expectations are met or exceeded and that they have positive memorable experiences at each interaction with the product and or service.