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Business Models Matter, Ann Miura-Ko: At the seed stage, it's the business model that matters, not the business plan. Business models will allow you to understand exactly what your assumptions are. If the dollars in are not greater than the dollars out, you need to rethink your business model.
The phrase "business model" describes a company's strategy for turning a profit. It lists the goods or services the company intends to offer, its chosen target clientele, and any budgeted costs. For both new and existing firms, business models are crucial.
Before defining the clients for whom the problem will be handled, specify the issue you plan to address. Identify the client and the issue next. Define a range of potential answers after that. Define a range of potential monetization options for that solution, put them to the test, and then select your business model.
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