Innovate business model first

A big reason for startup failure is the fact that teams start building startups too soon.

Having a great idea and product will get you far but not all the way. Actually, basing a startup on a great idea increases the likelihood we develop products customers aren’t buying. Why is that? The answer is simple: customers are extremely slow in buying new products from market entrants as it’s always more convenient to go with the old. Customers also won’t buy until there’s a 100 % match to their personal problem and need and the “better” the idea behind the startup the more likely it actually is we exclude the customer from the startup process. We are racing blindly to build the product and startup to sell millions instead of finding product-customer fit.

Finding enough customers with the exact same problem and need is both time consuming and expensive. But building something before we’ve found them, is an irreversible mistake. Nothing is harder in business than finding and validating a repeatable, profitable and scalable business model for a new product and startups aren’t taking this challenge serious enough.

To avoid building something customers aren’t willing to buy, we must enter markets faster. To achieve that we must start testing sales and marketing from day one and launch today not tomorrow!

The mission of Startup Cup is to teach participants to innovate business model first and focus on learning about customers instead of going from idea to development too soon.

To Innovate like a startup we must fall in love with customers’ problems not our own ideas. We must understand that even the most brilliant ideas consist of 50% realism and 50% fantasy. It is our job to test and learn what is real and what is fantasy. We must build a relationship with and to the customer before we build a product and learn what is the minimum solution the customer is willing to pay for. Being a lean startup means you build value to customers instead of waste. Overbuilding is the most common form of waste startups create and a lot of money is needed to cover such mistakes. To avoid this we must learn a new process for startup marketing instead startup building.

Being a startup talent you understand all of this and you have the mind and skill set to navigate towards customer value and avoid waste. With these skills we will see a lot more old and new companies start growing.

Startup Cup is a 48 hour startup challenge in which teams compete in lean and agile startup marketing not startup development.

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For more info contact: ola(at), 040-549 47 55

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