Note: The views & opinions expressed in these essays are strictly my own, and not those of any entity I may be associated with as an employee, consultant, promoter, investor, etc.ARCHIVES
Technology Entrepreneurship in India - Teams
Technology Entrepreneurship in India - Generating Revenue
Technology Entrepreneurship in India - Raising Capital
Equities, ETFs, F&O
Oct 2011: Equity Risk Premium for India
Jun 2011: Investing in Indian equities
Technology Enterprises in India
Nov 2010: Technology investment in India - WATER
Aug 2010: Technology enterprises in India - 3 avatars
Risk Capital for MSMEs
Mar 2010: Risk mitigation for investors in MSMEs
Mar 2010: Why don't (Indian) MSMEs get risk capital?
Feb 2010: Angel investing - Will it work for Indian MSMEs?
Feb 2010: What's so special about innovative MSMEs?
Feb 2010: Where do Indian/NRI (V)HNIs invest?
Feb 2010: Funding options for innovative MSMEs in India
Jan 2010: Innovative MSMEs in India
Is your business model well-defined?
(Last revised Apr-2012, Send comments to email@example.com)
What product/service will you sell, to whom, at what price, by what means, at how much profit, in order to fulfill which need? That defines a business model. Too long? Here's a shorter one: How will you make money?
A business model is not the same as a business plan. It is simply a concise set of entrepreneurial assumptions that constantly get/need a reality check.
While there exist a variety of business models in any industry across the world, entrepreneurs in India have more options to choose from. These include:
Also relevant to India is (unstable) government regulation such as our annual budgets, price controls, subsidies, etc. In no time, a viable business model may become worthless, while a new, lucrative one may become feasible. These risks must be identified - and minimized - when designing a technology venture for India.
Entrepreneurs must define their own business model and iteratively revise it, as they learn from, and adapt to, their markets. Spend 2 hours/month with your co-founders, management and advisors to update the assumptions in your model.