business ideas and business models

STARTUP ENTREPENEURSHIP AND

VENTURE CAPITALVille SimolaM.Sc (Econ.)

About me

BUSINESS IDEAS AND BUSINESS MODELS

What is a startup?

Definition #1

“A startup company or startup is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets. “- Wikipedia

Definition #2

“A startup is NOT every new business venture (actually, it is but this is not the way we use the

term anymore). It is a new tech venture, internet related mostly, that has the potential of rapid  growth through servicing new market segments and/or offering new product/services”- Quote taken from Quora.com

Definition #3

”A startup is the organization used to search for a scalable business model” – Steve Blank

How startups are different than

traditional businesses?

Comparison #1(Steve Blank)

Small businesses

• Business model found• Profitable business• Existing team• Not all the businesses

of internet age are ”scalable startups”

Scalable startup

• Designed to grow big• Huge uncertainty• Typically needs risk

capital• These companies are

the real startups

Comparison #2(Steve Blank)

Traditional accounting

• Balance sheet• Cash flow statement• Income statement

Startup metrics

• Customer acquisition costs

• Customer lifetime value• Monthly burn rate

Comparison #3(Steve Blank)

Business plan

• Static-document• ”No business plan

survises the first customer contact”

• Focus on planning not execution

Business model

• Can be iterated quickly• Shows how company

creates, delivers and captures value

• Focus on execution and how to make money

How to find a business idea?

Idea #1

Start solving a real problem

Idea #2

Problems can be found from everyday life, from hobbies or from work life

Idea #3

After finding the idea – sleep day or two to realize whether it’s really a good one

Facts about business ideas

Idea fact #1

Importance is usually overemphasized

Idea fact #2

Will pivot during the journey

Idea fact #3

Is something that should not be hidden

Facts about the founding team

Team #1

Is the most important asset you have

Team #2

Should combine a different skillset

Team #3

Needs to have high and passionate vision

What is a business model?

Business model #1

Might sound like a new concept but is actually not

Business model #2

Describes how organization creates, delivers and captures value

Business model #3

Business model is not just about how do you make money

Examples of business models

Business model example #1

Direct sales model: marketing and selling products to a customer directly

Business model example #2

Freemium model: Giving the basic version for free but charging for premium version

Business model example #3

Subscription model: selling periodic use or access to a product or a service

Business model example #4

Razorblade model: Item is sold cheap to increase sales of a complementary product

Business model canvas

Business model canvas: FIFA Soccer World Cup

Example

What it takes be a successful

entrepeneur?

Success #1

Technology is nice but it’s all about the value

Success #2

Planning is good but execution wins the war

Success #3

Great companies are not born they are built

Recommended readings

Recommended links

springwise.comsteveblank.combusinessmodelcreation.comleancanvas.comarcticstartup.com

Ville Simola www.smolaholic.com

@smolaholic

ville.m.simola@gmail.com

My contacts