Most entrepreneurs do their best to design innovative and customer oriented products, but what they fail to realize is that every elegant solution they design does not necessarily fit into a successful startup business model. In fact, startups require the combination of right price, access to networks and establishment of a scalable channel to target customers and keep them engaged for a productive business. All of these components combined establish product-market fit and that is all needed for an ideal business model.
Only
when you access startup
help
portals do you realize that the diligence required for crafting a
promising business model is similar to that of designing a product
but the skills and approach required are completely different. This
is usually why you will find some of the best startups in the world
are headed by two co-founders. One focuses on the technical solution
while the other deals with defining and building a well structured
business model.
Why Does Prototyping A Business Model Matter?
Prototyping the business model helps in a number of ways:
- Tests your strategy: A prototype is the best and leanest way to test your strategy before bringing the plan into real action. You can even demonstrate it in front of a small board of investors and advisors and take an account of the feedback that they have to offer. All of this will only help you iterate on the business model and make it better.
- Lowers the risk: Most of the startup guides often warn about the risks involved in failed business models. However, when you have a prototype then this factor is somehow lowered, as there is an opportunity to scrutinize it before hand allowing it to reach out the customers the way it should.
- Competitive advantage: The prototype can even be showcased in front of industry association groups and other related organizations as this will help you in having realistic feedback, credibility and positive visibility which at the end of the day would work as the final validation for the model.
Hard work, an innovative mind and determination to excel, are all important facets of an entrepreneur. Couple these with the best skills and you should be able to craft an incredible business model that speaks for itself, and gets to product-market fit. But remember, when working on your startup never neglect the importance of a prototype.
The Significance of Prototypes Within Successful Startup Business Model