My Current Thoughts on Startups / Businessess

I was just talking to a friend of mine on Facebook summarizing my current thoughts on the state of startup’s / businesses. Added a bit more to add some context to my current thought process:

“Most of the new startups start with business models that have eventual tipping points of success. Where its a zero to one / monopolistic / only one winner takes all approach.

This makes the unit economics sometimes not making too much sense.

I just want to start something simple…that makes good money to solve simple real world problems where I can add value by providing a better customer experience.
For example an agency – its all done before. Proven business model. Things that have been done before and sometimes seem un-sexy is where the money is at.

Its nothing too game changing, I just need to set up and automate enough processes to make it as efficient as possible.

That is a business.

Low Customer Acquisition Cost (CAC), high Lifetime Value (LTV).

Then just spend the time to oil the mechanism – getting better acquisition channels and strategies, better onboarding process, better re-engagement processes to up sell / down sell and cross sell various related solutions that solve the customer’s pain point.

And obviously deliver value.

I think venture backed stuff should deal with more real world issues – like eliminating hunger or something that has no real commercial value but brings up quality of life for those who do not enjoy the same quality of life us.”

 

About the Author

Posted by

Categories:

Startup, Technology

Add a Response

Your name, email address, and comment are required. We will not publish your email.

The following HTML tags can be used in the comment field: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>