A Quote by Steve Blank
Startups are companies that are still in the process of searching for a business model. Ventures that are further along and executing their business models are no longer startups; they are early-stage companies.
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Companies that acquire startups for their intellectual property, teams, or product lines are acquiring startups that are searching for a business model. If they acquire later stage companies who already have users/customers and/or a predictable revenue stream, they are acquiring companies that are executing.
We now understand the distinction between startups - who search for a business model - versus existing companies - that execute a business plan.
Seed stage is an investment area that is really important for early stage startups. It feels like there is a need for trusted, experienced people to work with and to guide startups at this level.
I think the rise of A.I. is bigger than the rise of mobile. Large companies are sometimes as worried about startups as startups are about large companies. Ultimately, it will be about who delivers the best service or product.
Startups have finite time and resources to find product/market fit before they run out of money. Therefore startups trade off certainty for speed, adopting 'good enough decision making' and iterating and pivoting as they fail, learn, and discover their business model.
I have seen a lot of now-great companies at their earliest stages, and these early-stage startups are not built by the senior people who know how to run and scale big-company machines.
Before, companies and startups had to lay up all this capital for data centers and servers, and take your scarce resource, which in most companies is engineers, and have them work on the undifferentiated heavy lifting of infrastructure. What the cloud has done is completely flipped that model on its head so that you only pay for what you consume.
Big companies are looking closer term, and even the most technological companies spend less than 1% of sales on research. Startups have suffered the burst bubble.
If we didn't have Net neutrality, carriers could do things like penalize companies that use a lot of bandwidth or create high-speed lanes and charge Internet companies extra fees to send their stuff over them. That would give an advantage to big companies and make life harder for startups.
Companies will need to pursue a more diversified business model, but I think those companies that have what I call a focused diversified business model will be more successful.
My primary early interest was in marketing and my aim was to improve its theories, methods and tools. Early on I pressed companies to adopt a consumer orientation and to be in the value creation business. I didn't pay much attention to the social responsibilities of business until later. Now I am pressing companies to address the triple bottom line: people, the planet, and profits. I found that companies were too much into short term profit maximization and they needed to invest more in sustainability thinking.
Startups are the engines of exponential growth, manifesting the power of innovation. Several big companies today are startups of yesterday. They were born with a spirit of enterprise and adventure kept alive due to hardwork and perseverance and today have become shining beacons of innovation.
All too often, a successful new business model becomes the business model for companies not creative enough to invent their own.
Whenever one or more components of a company's business model changes, new business models are created for supporting companies. The changes might involve niches served, new marketing angles or improved value propositions.
Life inside successful Web startups - especially the really successful ones - can be nasty, brutish, and short. As companies grow exponentially, egos clash, investors jockey for control, and business complexities rapidly exceed the managerial abilities of the founders.
If you look at our original business model with the verticalized law firm, a lot of these companies that have this kind of full stack model are not going to survive. A lot of these companies, Atrium included, did not figure out how to make a dent in operational efficiency.
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