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transactional vs. product vs. service
scale vs. scope recurring revenues blue ocean vs. red niche market vs. ocean direct sales vs. mass market indirect sales personal vs. capital expenditure vs. automated open vs. closed partnership disruptive vs. difficult questions human intensive vs. incremental acquisition vs. retention system intensive tailor-made vs. mass physical vs. virtual production one customer segment vs. another copyright vs. copyleft fixed vs. variable paid vs. free costs distributed vs. in-sourcing vs. out- advertising vs. centralized sourcing sales
a business model might look
great on paper... building block building buildin block g block building block block building block ... but be buildin block g building building block honest that it’s block buildin block g building build block blocing k buildin block g
... just a set of
hypotheses guess guess guess guess guess guess guess guess guess guess guess guess
... to test and adapt
your model agile business model demand adaptation creation problem channel product customer (customer) market type user (problem) competition payer customer development channel team validate business pricing model model
you need to adapt the
business model until you can prove it works customer customer customer company discovery validation creation building pivot
1 No business plan survives
the first customer contact. 2 It’s the business model, stupid. 3 Take time to think through alternative possibilities 4 Your business model idea is just a set of hypotheses. 5 Don’t build your company, until you’ve verified your Business Model
you can read more about
business models and the customer development process here: + BusinessModelGeneration.com StevenBlank.com/books.html