Internet entrepreneurship from the characteristics of business models

There are many gold mines on the Internet, but they do not belong to you. Good ideas are just the first step to success. In many cases, too many creative ideas are ultimately failures. Only mature business models and teams are the key to success. The business model is ultimately reflected in the profit model, and the profit model needs to be supported by actual products and research data. You need to clearly state your team, environment, and capital, products can make you continue to make profits. It is undeniable that there are also many early business models that are not very clear about the final success of entrepreneurship, but this is only a case and cannot represent all.

1. a good business model must be profitable

The age of burning large amounts of money on the Internet has passed. It does not mean that there must be much profit, but that the investment payback period should be as short as possible. In this way, the business model can be self-verified and adapted. In many cases, the product or scale is very large at the beginning, but it may be that marketing is not available in the future, our investment cannot really generate benefits. In this mode, the entire business model is not sustainable.

In the Internet era, Creativity requires the product to be produced as short as possible. Our products or services must be positioned as small enough. Only focus can give full play to the advantages of small teams, avoid financial weaknesses. We can launch products as early as possible, and get the corresponding return as early as possible to support continuous and adaptive development of product development.

Entrepreneurs who are optimistic about a product or service must invest their own upfront funds to start a business, rather than choosing a start-up or venture capital. Products that are not optimistic about themselves do not have clear business models to ensure that profitable products are not worth investing in immediately.

In addition, we must also clearly understand that the profit model must be clear that website access traffic and user resources are only the basic conditions for profit. Internet entrepreneurship cannot be a long-term loss of money to earn money. You must be aware of the value-added services and profit channels that can be formed after access traffic and user resources.

2. Business models must be self-protected

Creativity is worthless, and a good idea will soon be imitated by competitors. Maybe your opponent has more advantages over you in terms of capital and accumulation. After seeing a good idea, your opponent may launch a competitive product and then offer it. Then you may just turn into a big enterprise testing field on whether a business model is feasible or not.

The self-protection of business models will create a barrier and make it difficult for competitors to follow suit easily. Or when your opponent wants to emulate it, you have trained a large number of loyal user groups. The formation of a batch of stable visits and user groups as soon as possible is a key aspect of self-protection, some core technical advantages that are difficult to emulate for the products or services provided are also an important embodiment of self-protection.

When the funds are limited in the current period, we should emphasize that entrepreneurship should focus on small enough points to maintain the profitability of the team's sustainable development in these small points, however, small focal points often do not motivate large enterprises to join the competition in this market. At this time, you are the safest, And you can expand yourself step by step.

3. The business model must be self-launched

The small amount of funds in the early stage is not the reason why we cannot start immediately. If we invest less in the early stage, we need to consider the fund return cycle and capital turnover. We need to invest a small amount of money in the early stage, which can generate benefits in the shortest time and be added to product iterative development.

The more we invest in the early stage, the more risks and liabilities we face. In the self-starting mode, we need to plan the product's iterative development plan so that the product can be available as soon as possible. At the same time, the product can be pushed to the market and users can test the feasibility of the business model to revise the future plan to reduce risks.

4. Business models must be adaptive.

In software development, we often emphasize adaptive development, and emphasize that development must adapt to changes in requirements. In Internet entrepreneurship, we also emphasize that business models can adapt to changes in external environments, markets, personnel, technology, and other factors. In this way, when the environment and market demand change, our initial investment is often not in vain, but can be well reused to develop other products or services.

5. There must be a financial exit strategy for the business model (not mandatory)

For Internet Startups of small teams, the expected financial exit strategy is to be acquired by large companies, or to be listed on the SME board after obtaining venture capital. If you can create a business and sell it, you can cash in from the company's net worth. If you cannot sell it, you will earn a yearly profit. The two may be quite different. For example, Yahoo, eight months after its listing, has a net worth of $1 billion, but the profit in the past year is only $2. This huge proportion of 0.5 billion to 1 is not normal and does not last long.