Your Business Model Can Make or Break You: Here's How to Nail It

THE LEAN LESSON

A killer product is great, but without a clear business model, your startup is just a hobby.

You can’t rely on hoping for customers to figure out how to pay you. You need to be clear on how you’ll make money, or you’ll find yourself out of business before you even really start.

One of the top reasons startups fail is not having a clear business model.

This doesn’t just mean figuring out how you’ll make money, but also understanding who your customers are and how you’ll reach them.

Your business model is essentially the blueprint of your entire operation.

Take Airbnb as an example. In the beginning, they didn’t just have a great idea for renting out spare rooms; they knew exactly how they’d make money.

They charged hosts a small service fee and ensured they had a clear understanding of how to reach travelers.

It wasn’t just about the product—it was about having a sustainable plan for revenue.

Action Points:

• Map Out Your Business Model: Who is your ideal customer? How will you reach them? What’s your monetization strategy? Write these down and refer to them often.

• Test and Refine: Your business model might change as you grow, and that’s okay. Test different monetization strategies to see what works best.

• Focus on Revenue from Day One: Don’t get too caught up in building your product without thinking about how you’ll turn that product into profit.

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