Designing Your Business Model (2:36)
At the core of everything we do at Fluent, we help you develop the skills and mindsets of a successful serial entrepreneur. To start, let’s think about the difference between building a business and building a startup. These are two very different things! To help understand the distinction between the two, we use the definition of a startup given by Dave McClure, former founder of 500 Startups:
“A startup is a company that is confused about 1) what its product is, 2) who its customers are, and 3) how to make money. As soon as it figures out all three things, it ceases to be a startup and then becomes a real business.”
Basically, a startup is an organization that is unsure about its business model. There are questions or unknowns around the product the company is creating. There are questions or unknowns around the ideal customer they are serving. And ultimately there are questions around the process of turning users into customers and making money.
At Fluent, we love this definition of a startup! It gives you permission to look at your startup as an organization that does not yet have all the answers, and is not even supposed to have them yet. Rather, your job is to find the answers.
Ultimately, your goal is to figure out your business model as quickly as possible before you run out of resources. That can be before you run out of runway financially, but also before you run out of time and creative energy and attention.