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A New Approach to Designing Business Models

加入 getAbstract 阅读摘要

A New Approach to Designing Business Models

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To heighten chances of success, entrepreneurs should inject flexibility and experimentation into their business-model design process.

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Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

When attempting to launch a business, entrepreneurs often formulate business plans that look great on paper but that ultimately flop. According to Alex Osterwalder, author of Business Model Generation, many new enterprises fail because they don’t test their ideas or consider alternatives before launch. He adroitly suggests turning to automakers for inspiration. getAbstract believes Osterwalder’s insightful guidance offers a beacon of light to neophyte entrepreneurs feeling their way in the dark.

Summary

Before bringing a new car to the market, automakers follow a thorough development process: Engineers sketch a range of ideas before constructing prototypes to analyze how their concept machines would behave in reality. Simulations then provide performance data, which allow designers to make modifications. Manufacturers conduct crash tests in labs and try out the car on the open road before launching the new model. Entrepreneurs can learn much from this structured approach. Yet few start-ups test their business models before launching them, which is why so many new ventures fail. To heighten your chances of success and to save money, ...

About the Speaker

Alex Osterwalder co-founded Strategyzer, an app that assists in designing business models.

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