You have started up. You are excited and you want to look at all possible situations and scenarios where you can build your startup and make it big. Who does not want it?
The aspect of running a company is not just providing a solution/service, but having an immaculate plan of alternative Business Models. What do I mean by this?
Do you remember Kodak? This was one company which rewrote the business of Photography. They had everything available for photographers – from films to cameras to printing solutions. Their business was unbeaten even though they had competition. They were undisputed leaders. However, things started to fall apart with the advent of Digital Photography and Digital SLR camera’s coming into the market. Initially, everyone thought that there is nothing to beat in terms or clarity and quality with the Roll photos, Digital Camera’s were not so advanced. But, by the time Kodak realized, they were being beaten up. Digital photography took over and Kodak was completely out of options. Today, we do not have any more camera rolls. What happened here is the unpreparedness for the competition. Kodak tried multiple options to save the company and its business, but everything went in vain.
Today’s startup’s / businesses focus on the primary business models and miss the fundamental aspect of Business Model, which is sustaining and running the business. What the founder should think is the long-term practicality of the idea and how he can mould the company to withstand competition and turbulent times. This is what makes for a working Business Model.