Before beginning about business models and customer development, maybe we can first ask, “What is a company?” What the heck am I trying to build anyway. Defining that will streamline all your thoughts into one mission.
A company is an organization which tries to sell goods or services in exchange for money. Yes, you need a product in order to earn money. And also, you need money to build a product. Well, not necessarily. Providing a service doesn’t always have to cost money. Although knowing how to provide the service probably cost you a lot of money. Anyway, I’m digressing.
So, what is a startup? No, it’s not about free food, a small team, and bringing your dog to work. No, it’s much more than that. For the man in the video, a startup is a temporary organization designed to search for a repeatable and scalable business model.
Trust this guy, he’s already gone through 8 startups.
A startup is temporary because someday you want it to become a company. It’s an organization that will soon have a steady product. A startup is designed to be searching for something. Something that you can repeat over the course of years to come. And something that is scalable. That is, if you put in 1 dollar, you can earn more than what you put in, that is, more than a dollar. You can’t have a business if it’s designed to lose money in the long run.