A great idea is a critical first step in building a successful venture. After that, how will you expand your user base and connect the right customers with your offer? Find some answers in these three videos on discovering new business models.
Alexander Osterwalder shares a short video to explain the structure of his business model canvas framework. Emphasizing the importance of searching for a business model, Osterwalder says, "Great products are becoming a commodity. It's the combination between great products and a great business model that is going to keep you ahead of the competition in the coming decade."
FLOODGATE Fund co-founding partner Ann Miura-Ko believes it's the business model that matters most, rather than the business plan. A well-thought out business model that is data-driven and scenario-focused will be seriously considered. According to Miura-Ko, models do a better job of unearthing assumptions about a company's users, customers, pricing, demand creation, sales channels, supply chain, and overall logistics - all critical components to building a successful venture.
At Box.net's inception, customers were charged for storage when they signed up. However, Box.net CEO and Co-Founder Aaron Levie, and his team, realized they wanted to grow the customer base by lowering barriers to product adoption. In this clip, Levie describes the company's successful implementation of the "freemium" business model, which not only increased their number of customers, but also served as a differentiator from larger competitors.