The first part. Let's define the terms “startup” and “web product”.
To all of us who like the world of Startups, entrepreneurship and Innovation the importance of the business model may be obvious. Naturally, the basis of every business project is to have, from the beginning, clear ideas about what the company is going to be and how things are going to be done. Although it is not always easy. Therefore, in today's article, we are going to talk about a very useful and innovative tool: Alexander Osterwalder's Business Model Canvas, Innovation in the "Lean Startup" style and many other tools.
What is a startup?
A startup is a young company founded by one or more entrepreneurs in order to develop a unique product or service and bring it to market. By its nature, the typical startup tends to be a shoestring operation, with initial funding from the founders or their families.
Startup is an experiment. you should experiment to find the solution to your customer's problem and to ensure that these customers will generate enough money back for you to continue offering this solution.
Some time ago I read the concept of lifestyle startup as opposed to the concept of growth startup (growth startup) that is best known:
• growth startup: these are startups that have a main objective, accelerated growth so that they can make founders, investors and shareholders substantially wealthy when the startup is acquired or zeroes in on an IPO.
When you are focused on accelerated revenue growth, or the number of users, all your actions are motivated by this goal, which takes precedence over all other issues, including customers, products, employees, suppliers, quality, etc. It is common to hear in this type of startup questions like "how do we make this product sell faster?"
or "can we create another product or add-on to charge some extra money to existing customers?" or "how do we double our user base in X months?" In this type of startup it is common to find people who put money as a priority.
• lifestyle startup: these are startups where revenue aims to support the company and the lifestyle of its founders and employees. As soon as this issue (sustainability of the company, as well as sustainability of the lifestyle of founders and employees) is resolved, the company can have total focus on the customer, product, employees, suppliers, quality, etc. It is common to hear questions like "how are we going to make a great product that solves real customer problems?" Or "how can I improve this product further so that it solves the problem of more people?" In this type of startup it is common to find people who put other people and their problems as a priority.
Note that the above concepts apply not only to startups but to any type of company.
Sometimes it can be difficult to identify what kind of startup we are dealing with, as both can produce excellent quality products that solve people's problems very well.
What is a product? (The solution)
You have certainly used some web product, after all the internet is made of web products. Google, Facebook and Twitter are good examples of a web product that you have certainly used. When you shop at Amazon or Submarino, you are also using a web product. Your bank's internet banking system may also be considered a product online.
A web product is any web system that allows a user to be recognized when he returns to use the system and data to be stored by the system. In some cases, this type of system requires a minimum registration with the user.
You can classify web products in different ways, depending on how we see them. We can look at it from the point of view of the technology that is used and that is delivered to the user, using acronyms such as SaaS (Software as a Service), PaaS (PlatformasaService) and IaaS (InfrastructureasaService). emailmarketing, content management, education, communication, collaboration, report etc.
Try to classify products by understanding how the product solves the problem. From this point, there are three types of product:
• for the final consumer: This type of producer solves a problem for the final consumer, which is willing to pay a fee to use services. Some examples are Netflix, LinkedIn, ContaCal.
One can also think of web products for final consumers, who pay the fee for the use of indirect way, that is, ataxapaga is by a higher service and the product is embedded in this service. Some examples are internet, college intranet or college, access to laboratory exam results. Electronic commerce sites are also in this category, because the site is free and the fee paid is for products purchased on the site that are delivered to the user.
• for companies: This type of product solves the problem of companies, which normally have more disposition to pay as the final consumer. Some examples are Locaweb, GoogleAdWordseCobreGratis.
• mixed: In this case the product solves both a problem for the end consumer and for companies. Typically, this type of product has no cost to the final consumer. Whopaysaccountsarecompanies. The most common model of revenue generation in this type of product is the ad, paid by the company when the final consumer sees the ad or clicks on the ad or buys something from the ad. Some examples are Buscapé, Free Market, Google Search + Google AdWords, UOL Content + ads.
Lets say we have already define the product and have a denunciation for the term startup and for the term web product. In the next article we will talk about who should create a web product startup, that is, what kind of knowledge is needed to develop a web product and what would be the business model.
What is business model?
Any business is a system. A system is the combination of several elements, interconnected, in order to constitute an organized whole. A business is understood to be a system because it consists of several parts or functions and needs all of them to be successful. A model is a description of a system. This description can be done linearly, with texts and numbers, for example, or visually, like a drawing, a doll, a graphic.
The Business Model in this case, is the possibility of viewing the description of the business, of the parts that compose it, so that the idea about the business is understood by those who read the way the owner of the model intended. Using visual aids (like the Whiteboard, self-adhesive stickers and colors) is also a fun way to work collaboratively. It is always good when creating to be able to hear the opinion of possible partners, partners, potential customers, family, friends, in short, whoever is willing to help. After all, anyone looking at the full Chart should be able to view the model and suggest innovations that can then be validated. Remember: when creating the model, the paper accepts everything. You can imagine different situations and then test and choose those that will actually be implemented.
“A Business Model describes the logic of creating, delivering and capturing value on the part of an organization.”
The Business Model and The Business Plan.
Difference between business model and business plan.
The Business Model precedes the preparation of the business plan. It is through analysis and reflection on it that it will be possible to see if the original idea will be valid, if all the parts fit together forming a truly system. Therefore, the model describes the business creation logic, that is, it shows that the reasoning and the interconnection of the parties make sense. At this point, the issue of delivery and capture of value should be very well explored. Delivery refers to how the customer receives the offer and the capture of value refers to the possibility of receiving feedback on how the customer is perceiving what is being delivered. The business plan describes how the business will be built, with steps, deadlines, cost sheets, revenues, etc. If the Business Model is changed, the business plan must be changed as well. The two tools must remain alive and connected. Sebrae has several solutions for preparing the business plan. To obtain the Business Model, the tool is the Framework, which we will see below.