Updated: May 3
There are five steps. One is to understand elements and their connections. Second is to understand progression. Third is to choose a industry and business. Fourth is to design a business. Fifth is to make a business plan.
Understand the elements:
quality, value, brand, talent, profit
The progression of a startup company, from research to brand
When choosing a business, keep in mind there are only six businesses:
the attraction business
the market builder business
the land business
the product building business
the tool building business
the channel business
First, try to get into the fattest market. That market satisfy the following:
It affects everyone
It requires everyone multiple dealings and everyday
the item gets consumed immediately
it is a natural human behavior
it is scalable if necessary
Try to sneak into such a sector with right time.
If you have a good job at a critical node, value it. This include teachers, police, librarians, etc.
If you are in the fringe, backstage, then try to make the HIGHEST QUALITY item and the highest price item.
However, if there is already a price leader, or a low price provider is there, then don't get in.
Otherwise, try to get into key nodes of the supply chain.
A good design involves the following items multiplied
end audience size
initial niche and scalable
good value extremely valuable and ridiculously cheap
value accepted with pay, payment extraction
fits one of the six business
no expiration date
magic and secret sauce
both industry supply chain and consumer are friends of you
Design these elements into the business design.
The execution of the business design
The execution depends on four other things
1. You found your onliness
2. You got a good name
3. You know how to build barriers
4. You know people (hire, network)
5. Build a strategy of basic fixed revenue.
The math for startup success is here.
The life run is shown here.