Disciplined Entrepreneurship: 24 Steps to a Successful Startup

STEP 15

Design a Business Model

IN THIS STEP, YOU WILL:

• Examine existing models across industries for capturing some of the value your product brings to your customer.
• Use the work you have done in other steps to brainstorm an innovative model for your venture.

How you will capture your share of the value you create is a topic that deserves more attention than entrepreneurs usually give it.

Entrepreneurs often spend a disproportionately small amount of time on their business model. They invest a lot of time in developing the End User Profile, the product definition, and the value proposition, showing how they will create value for the customer, but barely any time figuring out how that value translates into a profitable business. They are so excited to bring the product to market that they just default to adopting whatever business model is popular in similar markets.

Why spend all this time focusing on innovation related to technology and product design without a commensurate amount ...