Yes this is a dilemma among entrepreneurs and start up companies. Do you need to launch the product or get the business model right first?
FIRST WAY
SECOND WAY
Once you receive all the feedback, then you would be able to craft the right business model. The business model has to be there. The data is more solid and presentable for venture capitalists to take you seriously.
The only different is you put forward your product first and then figure out the business model that would work best for your settings. Nothing wrong with it.
Ergo, depending on your situation, choose which way to go first. As for me, early market validation is better. It would give you a good traction and evidence for VC, at least.
I have to put different hats if I want to answer this question. And there two ways to approach this question.
FIRST WAY
I would understand start up companies are eager to bring investors or venture capitals on board. They need some capital injection in order to test, validate and scale up their products. Some need funding for more valid reasons.
Of course, if you present your ideas to venture capitalists, they normally would ask your business model. Revenue stream, your target market, market research etc.
If you are in this situation, you should come out with a business model. PERIOD.
Usually they would not be interested much about your products or ideas. They just want to know whether it would make a business sense out of your product. Then, they choose what sort of strategy templates they would need to use to commercialize, scale up and exit when the time is due.
It is very rare to find a venture capital that really invest in people and your passion. VCs that really believe in your visions and dreams and betting on your potentials are not many.
Or probably I didn't meet them yet.
Usually they would not be interested much about your products or ideas. They just want to know whether it would make a business sense out of your product. Then, they choose what sort of strategy templates they would need to use to commercialize, scale up and exit when the time is due.
It is very rare to find a venture capital that really invest in people and your passion. VCs that really believe in your visions and dreams and betting on your potentials are not many.
Or probably I didn't meet them yet.
SECOND WAY
On the other hand, if you already have a beta version or almost ready product, I would suggest you to launch it first.
See the outcomes, get the feedback and make adjustment necessarily. The feedback would be more reliable.
The biggest advantage is you would know whether your product is suitable for the market. With hindsight, you would be able to tweak your product to meet the market demand and expectation.
See the outcomes, get the feedback and make adjustment necessarily. The feedback would be more reliable.
The biggest advantage is you would know whether your product is suitable for the market. With hindsight, you would be able to tweak your product to meet the market demand and expectation.
Once you receive all the feedback, then you would be able to craft the right business model. The business model has to be there. The data is more solid and presentable for venture capitalists to take you seriously.
The only different is you put forward your product first and then figure out the business model that would work best for your settings. Nothing wrong with it.
Ergo, depending on your situation, choose which way to go first. As for me, early market validation is better. It would give you a good traction and evidence for VC, at least.
No comments:
Post a Comment