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Business models for dummies

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If only all entrepreneurs read and internalized “Combining Business Model Prototyping, Customer Development, and Social Entrepreneurship” by Alexander Osterwalder. The world would be a much better place. The basic premise is that the search for a good business model goes through three stages:

  1. Designing a starting model
  2. Iteratively adapting your starting model in response to market feedback
  3. Scaling it when you nailed it

When you see startups run out of money, it’s usually because the companies skipped steps 1 and 2 and went straight to step 3 without the “nailing” part of it. Every entrepreneur should read this blog post.

Tips for start-ups.