Wednesday, August 11, 2010

Designing Business Model

In his talk about Why Accountants Don't Run Startups, Steve Blank highlighted Alex Osterwalder's work on 1 page business model. Its very similar to design patterns in software development. 

Here is my initial take.
Idea is to have many of such business models sketched out. It helps keep all moving parts within context.

Download business model template from
Download 1st chapter of Business Model Generation handbook (Amazon)

Business Models for Startups

I was always confused by the notion of business model/plan as it applies to large companies versus startups.

Steve Blank has an excellent post about it.

A startup is a search for a repeatable and scalable business model.  As a founder you are testing a series of hypotheses about all the pieces of the business model: Who are the customers/users? What’s the distribution channel? How do we price and position the product? How do we create end user demand? Who are our partners? Where/how do we build the product? How do we finance the company, etc.

Also check out this excellent talk about Why Accountants Don't Run Startups he gave at Startup Lessons Learned Conference in San Francisco on April 23, 2010 on Customer Development 2.0.