Updated: Jul 18, 2020
The frame work
How to get on a path of startup and grow a successful business
Business is relation - give value, get paid. Starting up a business is building a relation.
Building a business is simple. It is going through failure after failure. And learn everything.
For an individual, the world consists of three parts: you, vacuum, and the network. Think of the network as a living forest where all people, all businesses, all the fun activities, all the struggles are conducted.
For an individual, the world is made of silos. Each silo represent a niche industry and niche market. Each silo is inch wide and mile deep.
The fame work is the bigger picture to understand the business startup process.
The relation between heaven, earth and human (representing nature, business world, and end consumers/society.
The three jumps (scaling and growth) needed for success, including (1) the jump from niche focus to ceiling, (2) the jump from initial startup stage to bigger business unit, and (3) the jump from a single focus to variety.
The understanding of three forces that drive our world, science discovery, technological migration, and societal changes.
The understanding of history cycling.
The understanding of technology diffusion
The understanding of business life cycle and product life cycle.
The three dimensional progression of your maturation and knowledge acquisition.
The understanding of trends (such as law)
The understanding of timing, and starting in advance.
The elements of people, resource and materials.
The most fundamental three processes that one must understand, about yourself, about product to market, and about the startup experience.
Three dimensions of personal preparedness.
A personal journey after college.
There are two ways that guarantee you to be on the path when it is first time.
Number One, quit your job. The minute you quit your job, you have started. People stay in the comfort zone is the single biggest reason that few people start.
Number Two, sees a BIG business opportunity and jump on it. Build and catch the timing. Eventually, if you don't do it, everyone will be doing it.
Let's review the connection of these words: Arts, Engineering, Business, Method, Technology, Ends, Effects, Relation, Ecosystem.
Let's further review the connection of these words: Business model, value proposition, business design.
Value proposition to the end consumer in the silo and the value proposition to the business in the silo are different. But they both have to be there and entice them to PAY.
You can always give valuable things away for free, even if people can pay. If they can pay, then you want to maximize your regularity and earning. For example, instead of "pay and dial" for a phone plan, you can have "monthly subscription" model where people gets further discounts but you get regular business.
A business model may also include things like making it difficult for people to unsubscribe. Those are business hacks - they are often not the nicest but people who pays you would live with the dings and short change.
A business design is to find the market to land and the industry to land in.
Business methods involves hacks. Hacks are "arts of business", not just business. A number of hacks used by startups are listed below:
finding right niche (the Facebook was able to beat MySpace)
Pinduoduo, a Chinese online store, sells largely subpar products to 3rd tier cities. The product is so low it is like entertainment. It went public in 3 years with the right connections. It got much needed capital and will survive for a while.
Meituan, a Chinese Yelp+Groupon+Uber Eats combo, beats many big players such as Baidu and Alibaba.
Certainly, some companies cheats, for example Luckin Coffee.
Let's use the example of Google. Google did not invent new knowledge. It is a simple method: catalog the ENTIRE internet on one disc first and then spit out the result, rather than "search on the fly". So is the idea "brand new", yes it is brand new. Is it "high tech"? hardly. It is advanced programming, but not really quantum computing or genetic modification.
Imagine if Google has a good product but does not know how to make money. Then people would gladly search for free, and that is basically like a giant Wikipedia. But Google decided it is not a 2C company, it is a 2B company. It invented the business method of ranking and advertisement. Since advertisement relates to business survival and growth, Google becomes very rich.
Was Google new? hardly. There are countless search engines before. Was advertising new? hardly. It is as old as business. Can you start a Google any time? can you start Google today if Google does not exist? that is a good question. Timing is important, but Google proposed a "game changer disruptive method" and disrupted the value the search engine users perceive - they get much much better search results, and it helps them with homeworks and work, and they like it.