Abstract from http://blog.strategyzer.com
It’s hard to build a new business and failure along the way is inevitable.
Here are four major mistakes to be on the look out for to avoid failing indefinitely.
- Solving an Irrelevant Customer Job – Your business model will fail if it is built around a value proposition that solves a customer job that customers don’t care about, or that customers don’t care about enough.
- A Flawed Business Model – It could flaw if when a business model’s value propositions generate more costs than revenues from customers or if you fail to establish customer relationships that allow you to successfully retain and grow your customer base sustainably.
- Neglecting External Threats in the Business Model Environment – Competitors: this is the most obvious example as external threats. You may never even acquire customers if your competition’s business model locks in customers and prevents them from switching to you.
- Poor Execution – If your company’s resources (physical, human, and capital) are not properly aligned around the most critical elements of the business model, it’s liable to fail.
In order to solve or, better, avoid this mistakes, and achieve your target (be successful) some good tips to keep in mind.
- Once you understand what matters most to customers, make sure your products and services sufficiently alleviate pains or create substantial gains. Otherwise you’ll fail even if you target the right jobs, pains, and gains.
- Design a business model that works not only for your customers but also for your company.
- Constantly scan your business model environment to stay abreast of impending threats to your business models.
- Seek to improve and refine your business models relentlessly.
More details at: http://blog.strategyzer.com by Benson Garner