A business model is a comprehensive framework for defining, understanding, and designing your whole business. Defining your business model for your start-up is key to increase your companies long term value and will simplify your operations. Early founders often misunderstand the importance of company models, for a deeper understanding, check out these 50 various kinds of business models, as well as company examples. Use this guideline to help  define your next business venture.

1. Franchise Model

Franchising is the best way for a business to expand since it enables the franchisor to license its resources and brand name. For a franchise to offer its goods and services in return for a royalty, intellectual property and rights are required.

Pros:

• Best for a company’s expansion
• Can license its resources and brand name

Example:

• McDonalds
• Subway
• Gold’s Gym

2. Multi-Sided Platform

A multi-sided business model is used by any firm that provides services to both sides of the business, LinkedIn is a great illustration of this, since it offers membership services to individuals looking for jobs as well as HR managers looking for applicants for their open positions.

Pros:

• Offers services to both sides of business

       Example:

• LinkedIn- it offers subscription services for people to find job opportunities but also for HR to find candidates

3. Cash Machine Business Model

This model is also referred to as the cash conversion cycle (CCC). It simply refers to how fast a business transforms cash to goods and services, and then back to cash. This strategy is employed by businesses who have a low profit margin yet have a disruptive position in the market. Amazon, for example, makes a large profit from its online shop before paying its suppliers. Another perspective is that Amazon’s supply chain is based on vendor credit.

Pros

• Good for companies with low-profit margin
• Good for inventory type of business

Example:

• Amazon-they generate a large amount of cash from their products before they pay the suppliers

4. Freemium business model

This model offers a mix of free and paid services, normally used by tech companies. For example, Software as a Service model (SaaS) or apps would use the freemium model. Companies offer a limited free version of their software or with limited features, to unlock the full software you would need to pay.

Pros:

• Grows business and acquire customers
• Good for SaaS or apps
• Great initiative to get customers to try the software

Example

• Zoom
• DropBox
• MailChimp

5. Subscription Business Model

This approach enables customers to get services by paying a set monthly or annual fee. In this scenario, the business must offer sufficient value to its customers so that they return to the website on a regular basis.

It enables businesses to segment the market and provide a limited number of things in their content under various plans and pricing, referred to as tiered offers.

Pros:

• Useful for content or service based websites
• Stable cashflow

Examples:

• Netflix
• Amazon Prime

6. Peer-to-peer business model

In a peer-to-peer transaction, the buyer and seller deal directly with each other about delivery of the product or service and payment exchange. Typically in a peer-to-peer economy, the producer is an individual or freelancer owns both their equipment (or means of production) and their final output. It’s not like a normal partnership when a company sells its services to customers (B2B or B2C). It earns money by charging commissions on the service. Uber is a good example of this since the app acts as the middleman to connect a driver with a passenger and the app keeps commission.

Example:

• Airbnb
• Uber
• Amazon

7. One-for-one Business Model

Known as the social entrepreneurship model, It’s a hybrid approach that incorporates both for-profit and non-profit services. Many businesses are adapting their business strategies to appeal to socially aware millennials, despite some concerns about its long-term viability. The greatest example is TOMS Shoes, which donates a pair of shoes to a kid in need for every pair sold across the world. 

Pros:

• Appealing to socially aware millennials

Cons:

• Long term viability since overtime “buy-one give-one” strategy will become costly

8. Hidden Revenue Model

This model is a revenue generating method in which consumers do not have to pay for the services provided, but the business still makes money from other sources. Google, for example, makes money from advertising dollars paid by companies to bid on terms ( key words), despite the fact that consumers do not pay for the search engine. Many social media companies use this model, especially Facebook. They gather data on peoples profiles and sell them to companies for advertising purposes.

Examples:

• Google
• Facebook
• Instagram
• Twitter

9. Razor and Blade Business Model

In this paradigm, one item (the razor) is offered at a cheap cost, while another (the blade) is sold at a high cost. A printer and cartridge business model is another name for it. The cost of an inkjet printer, for example, was a one-time cost; nevertheless, having a new ink cartridge changed is an ongoing cost for customers. If you have a devoted client base and can establish a lock-in scenario with customers, this strategy is ideal.

Pros:

• Need for recurring sales of an associated item
• Continuous flow of revenue

Cons:

• Need a devoted client base

Example

• HP printers
• Xbox games
• nespresso

10. Reverse Razor and Blade Business Model

The business model is the reverse of the razor blade business concept. It entails selling low-cost goods to entice consumers to purchase higher-cost ones. This business model employs a one-time offer for the premium product and, over time, generates additional income from secondary products.

Example

• Apple; sell apps, movies, music at a low cost but sells iPhone, iPad at high cost

11. Direct sales business model

Products are directly sold to end consumers under this approach, either one-on-one or in small groups (remember Tupperware home parties?). Every sale earns the salesman a commission. Despite the fact that technology has mostly replaced direct sales in many aspects, many businesses still want to provide a human touch to their consumers.

Example:

• Avon
• Arbonne
• Monat

12. Affiliate marketing business model

Companies earn money in this model by promoting, evaluating, and recommending the goods and services of other businesses. Consider websites that provide product reviews. These websites are compensated depending on the number of sales opportunities they generate for their sponsors.

13. Consulting business model

The consulting business model is used by companies that offer consulting services by employing experienced and qualified individuals and assigning them to client projects. These businesses often bill on an hourly basis and/or take a portion of the project’s success as compensation (cost reduction project). This approach is used by multibillion-dollar companies like Mckinsey and Boston Consulting Group.

14. Agency-based business model

An outside company is contracted to perform a particular job under this project-based business model. Businesses that lack internal knowledge have traditionally hired agencies to obtain a customised solution for their requirements. Do you remember Mad Men? Netflix original series about an advertising firm and its clientele. Digital marketing, design & architecture, survey, promotion, media, public relations, branding, website development, social media, and other specialised agencies are examples.

Examples:

• Digital marketing
• Design
• Branding
• Website development
• Social media

15. User-generated content business model

User-generated content is collected and sold to businesses looking to capitalise on their customers’ ideas and material in order to advertise their products.

This approach is powered by a variety of digital commodities, including videos, reviews, photos, blog entries, testimonials, and any other kind of material produced by brand users. And it’s all done via social media.

Example

• Youtube
• Quora
• Yelp

16. Online Educational Business Model

This business model is aimed towards the educational sector, including students and instructors, and enables them to access educational materials via flat course costs or subscriptions. It’s a hybrid of freemium, course fees, and a subscription-based business model.

Examples:

• Khan Academy
• Udemy

17. Instant News Business Model

This approach focuses on sharing and updating news in real time, without the need of a middleman.

This approach allows trustworthy main or secondary sources to convey breaking news or important announcements directly to their audience via open and dependable channels.

18. Multi-brand business model

This strategy is built on selling more than two goods that are almost identical but compete with each other and are distributed by the same company but under various brand names. It is carried out in order to achieve economies of scale and to establish an empire.

19. E-Commerce Business Model

E-commerce is a simple yet powerful business concept that enables consumers and sellers to connect and trade via the internet (online shop). Business to Business (B2B), Business to Customer (B2C), Customer to Customer (C2C), and Customer to Business (C2B) are all examples of e-commerce business models (C2B).

20. Distribution based business model

This approach is used by a business that integrates with its end consumers via one or a few major distribution channels. Companies that utilize this approach offer dealers, brokers, supermarkets, retailers, and other channels for companies to sell to consumers. Unilever, for example, devotes a significant portion of their income on ensuring appropriate distribution.

• Example:
  Unilever
• Supermarkets
• Brokers
• retailers

21. Drop-shipping business model

Drop-shipping is a company concept that is both cost-effective and interesting. A wholesaler drop-ships goods straight from the manufacturer to the consumer once an order is made on the company’s website. The company owner does not need to keep any inventory and delegates all shipping and logistics to a third party.

Pros:

• Start a niche e-commerce business website with limited up-front cost

22. Entrepreneurship Business Model

Enterprise business strategy is focused on obtaining huge agreements by concentrating on and targeting only large customers. Fortune 500 customers, for example, often have multi-billion dollar budgets. Boeing, Raytheon, SpaceX, and Goldman Sachs are examples of Enterprise business models since their sales efforts are directed at extremely big corporate enterprise clients or governments.

Examples:

• SpaceX
• Boeing
• Goldman Sachs
• Social Enterprise business model

23. Social Enterprise business model

Social enterprises apply business solutions to social problems. The goal is to achieve sustainability by enabling non-profits to support themselves financially instead of relying solely on grants and donations. Since there are no shareholders in a non-profit organization, the profits from the related social enterprise are completely re-invested in the work of the organization.

24. Direct-to-consumers business model

This approach enables businesses or brands to sell their goods directly to end users. Customers must be retained via very successful marketing campaigns and advertising activities.

25. Family-owned business model

A family-owned company is one that is managed by a family and whose decision-making procedures are overseen by two or more family members. The company’s leadership is handed on to the heir, who will transmit the baton to their offspring.

26. Blockchain based business model

Blockchain, the most sophisticated, futuristic, and contemporary technology, has transformed the whole landscape of global transactions using decentralized network systems. Consumers may transact peer-to-peer via a decentralized network, which increases confidence. Tokens are used by blockchain-based companies to generate revenue and to provide Blockchain as a service.

Examples:

• Bitcoin
• Ethereum
• Cryptocurrencies

27. Vertically integrated supply chain business model

Vertical integration is where two businesses at different stages of the supply chain join together. For instance, a business that relies on another for its supplies may find that it is unreliable, which is affecting business. In turn, it may vertically integrate with its supplier in order to reduce late deliveries and increase efficiencies.  When a business has more control over how a product is manufactured and supplied to end users, it may offer goods to customers at cheaper costs (with a higher profit margin).

Examples:

• Amazon
• Ikea
• Netflix

28. Combination of chains and franchise business model

This strategy consists of a mix of owned and operated chains as well as licenced shops (franchising). Starbucks is the most well-known example of a business that has both company-operated and licenced locations.

29. Data licensing business model

In today’s environment, a data-driven business strategy has taken on new significance, particularly in the technology industry. Data is a vital component of web technology since it allows businesses to carry out operations and generate money.

Example:

• Google sells real time data to its partners used for advertisements and customer insights

30. Influencer business model

The influencers business model, works on the basis of the advertising paradigm, earning money by capturing the attention of their target audience. A brand finds an influencer who has a connection to the target audience the brand wants to reach. The target audience could be the brand’s existing audience, or a new demographic the company hopes to reach but hasn’t yet.

The brand and influencer enter an agreement. The influencer then creates content, usually with the brand’s oversight. They share the content with their followers. “When an internet service is free, you are not the customer,” Apple CEO Tim Cook famously wrote. “You are the finished product.”

31. Discount with high quality business model

Supermarkets and department shops that buy goods in bulk and offer them at wholesale prices often use this business model.

32. Nickel and Dime business model

The lowest pricing approach for the fundamental product or service is used in this company model. Because the base price is kept as low as possible, an extra fee is paid for the additional benefits and services that come with the primary basic service. The nickel and dime business model is prevalent in the airline industry. Airline companies that offer various services divide their service to charge for them individually. If a customer wants to pay for these additional services, they have to pay for them separately.

Spirit and Frontier Airlines, for example, are budget airlines that charge fees for extra services such as printed boarding passes, carry-on/check-in baggage, seat choice, priority boarding, Wi-Fi, beverage, meal/snack, phone booking costs, and so on.

33. Aggregator business model

The aggregator business model has come to disrupt every industry. This model, frequently confused with other kinds of platforms, usually involves organizing, under one brand, a very populated sector, such as taxis, hotels, travel, groceries, food, etc.

To make it simple, the aggregator may act as a sort of middleman, but unlike other platforms, it keeps tight control of the entire experience of its users.

Example:

• Uber

34. API licensing business model

Application programming interface (API) is a term that refers to a set of (API). It’s essentially a collection of subroutine definitions, communication configurations, and program development tools. API licensing is a business strategy that offers licensing mechanisms that enable third-party plugin/add-on applications for well-known platforms to be created by the developer community. Developers must also pay a fee to get access to APIs.

Example:

• Microsoft
• Apple
• Linkedin

35.Crowd source business model

Companies may use the crowdsource business model to get access to operational solutions such as ideas and technology, improved customer engagement, possibilities for co-collaboration, operation optimization, and cost reduction.

Example:

• Wikipedia
• Kickstarter

36. High touch business model

Customers’ engagement and participation are prioritised in the high-touch business strategy to customise the experience. It’s a phenomena in which a client forms a kind of relationship with the company. Larger accounts need more attention since they pay more and are more loyal.

Example

• Buying a vehicle, a home, or business SaaS requires numerous contacts with the salesman

37. Low Touch business model

Of course, a low touch business model is the polar opposite of a high touch business model, in which the product or service is provided with the least amount of client contact. Low touch is ideal for low-cost software solutions where gaining clients is more straightforward.

38. Flex Pricing business model

Flexible pricing is a business approach in which the ultimate price of an item may be negotiated. In other words, buyers and sellers may haggle over the price that best suits their needs.

39. Auction based business model

This concept is built on the opportunity to purchase a product or service via bidding. Although the concept is no longer widely utilized, it is still used in sectors such as antiques, real estate, collectibles, and commercial transactions.

Example

• On online sites that trade new and used goods, such as eBay and Amazon, the contemporary version of the auction concept may be seen

40.Reverse action business model

This business strategy adheres to a rigorous pattern of establishing the highest pricing and allowing customers to bid appropriately until the prices begin to fall. Businesses looking for suppliers often utilise a reverse auction. At each subsequent round, eligible providers bid lower and cheaper in order to attract the company and win the contract.

41. Brokerage business model

The brokerage business model gives buyers and sellers a single platform to communicate about transactions. Depending on the featured category, it charges a fee for every transaction between the parties, either from the buyer or the vendor.

42. Bundling business model

Bundling is a business technique that involves combining goods or services to create a bundle that can be sold as a single unit for a cheap price. It is a method of buying many goods and services from a single company unit in a convenient manner.

Example:

• Microsoft office 365 bundle (PowerPoint, Word, OneNote, Outlook)
• McDonald’s combo meal

43. Disintermediation  

The Disintermediation Model eliminates the need for outsourcing or the use of a third-party middleman. In reality, businesses that follow this model interact directly with clients and consumers via various channels such as the internet. Tesla is a good example of this since clients will go through their website or application for service. It creates a smoother more efficient customer service for their clients.

44. Fractionalization business model

The fractionalization model involves selling a product or service for just a portion of its intended use or in distinct portions. It’s a technique that separates goods and services into subcategories to provide diversity to the products while charging individually for each category.

• Example
  selling pizza by the box or by the slice

45. Pay as go (utility) Business model

The pay as you go model makes profit based on how much a product or service is used. In recent years, governments and NGOs have used the Pay-As-You-Go model to deliver common commodities like solar panels to rural communities, which they pay for over time. This model, for example, includes businesses that provide power, water, and mobile phones, as well as Amazon Web Services.

46. Product as a service

This model sells the service of a product instead of the product itself. For example, at a printing shop you can pay to use a printer. Therefore, you’re paying for the service of the printer.

47. Standardization business model

Standardization refers to the process of making a once-customized service general. This attracts customers because of the convenience and cheap costs. For example, Coca-Cola uses a global standardization in marketing keeping its design and theme the same even in countries with different languages.

48. User base communities

User-based communities make money by creating an engaging platform where users may connect with one another while also advertising. Subscription and advertising fees fund this model.

Example: Craigslist

49. Leasing business model

Leasing is the practise of renting rather than selling big or high-profile goods such as machinery and technological equipment.

Example:

• Home Depot (tool rental)
• Enterprise

50. Pyramid Scheme Business model

A pyramid scheme is a business strategy that is unlawful or contentious. Rather than providing investments or selling goods, the business works on the single principle of recruiting members by offering them a return in the form of money or services if they agree to enrol others in the scheme.

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Dr. Earl Azimov, a man with many talents: ranking tennis player, optometrist, serial entrepreneur, investor and the list goes on. Since 2003, we are lucky to have him as an advisor and board member on the PME committee. He has successfully started multiple companies one of them being Mamma.com. One of the very first search engines made available even before Google. Currently he is the co-founder of Global Clean Energy, where they transform waste into energy with hopes of obtaining a sustainable future. Earl has 20 years of experience in private equity, focusing on seed spatial investments in early stage companies. We had the opportunity to have a chat with Earl where he gave us some insight on what he’s learned over the years as a successful entrepreneur but also what he’s noticed about the Montreal entrepreneurial eco-system.

 

Q: You’ve had a very long relationship with PME. What are some of the changes you’ve noticed in the program then and now?

My answer to that is that the criteria for the access of capital from the PME fund has evolved over the years.  As the fund matured and new fund managers were selected, the quality of the start-up companies have improved as a result of the deep vetting from the fund managers. The understanding of what areas are best suited for PME have better developed. This has allowed for overall better structure and has boosted the quality of the services we provide to start-ups.

Q: How has PME contributed to the Montreal start-up eco-system then and now?

PME has been able to give young entrepreneurs access to capital that they would not so easily be able to get elsewhere. Not only do we give start-ups the early financing, we offer  mentoring throughout their entire process. In today’s entrepreneurial eco-system, it’s hard to find a place where they will give you this kind of financing and advice all at once. We really invest in the people that come because we really want to see them succeed. We give them the early seed capital they need and it’s not based on how much revenue they have. PME is the difference between success and failure. In addition, I myself am a mentor at PME and sometimes I’m given a business model where I help them pivot it entirely. I really like to invest in the person rather than the business. It allows me to see their skills and try to work with their model. However, if they don’t fit I help them pivot it and I’ve been successful in doing that almost every time.

Q: you are an accomplished serial entrepreneur.  What surprised you most about Quebec’s entrepreneurial environment?

As an entrepreneur starting out in Quebec, I found it very difficult. Many people will disagree but this is based off my own personal experience in trying to gain capital when starting my businesses. I’ve started many businesses here, and each time I’ve had to raise capital elsewhere in the world. This is most likely due to the lack of capital resources that Quebec has but also they are very shy in taking risks. I own one of the biggest search engines in the world and I could not even get a cent out of Quebec’s capital. I eventually looked elsewhere and was able raise about $25 Million out of Monaco.

 Q: As a board member and investor, you have seen many entrepreneurs pitch their ideas. What are some of the biggest mistakes people make when pitching?

Over the years, the biggest thing I’ve noticed is that entrepreneurs tend to exaggerate their financials projections and tend to under deliver. I understand that financial projections are just an assumption however, they need to be somewhat realistic and you need to be able to deliver. The dream is sometimes bigger than the reality. Business plans that are not realistic do not go well with the board. I understand you need to pitch the dream but we like to hear what the earliest revenue is and they need to be realistic.

Q: How do you recommend people prepare for a pitch? Any advice?

My advice is, the best way to prepare is to research who your competition is and what differentiates your company from theirs. Show the investors why your company is better than the rest and show them why. Also demonstrate strategic execution of how you’re going to accomplish this through your business plan. Having a good, thought out business plan is key in demonstrating how serious your business is.

 

Q: Looking back, you’ve seen many entrepreneurs succeed and others not so well. If you can give one piece of advice or a golden rule for an entrepreneur starting out what would it be?

If there is one thing I’ve realized over the years, the difference between success and failure of an entrepreneur is the passion they have. You need to have real passion for the business as this will keep you fighting through any obstacles that you will encounter. You need to believe in the business, yourself and believe that you will succeed. Having this faith in yourself is crucial at times when people might put you down and turn your ideas away. As long as you believe in yourself then you will be able to make it through anything. I’ve seen this a lot when people try to pivot their business. They don’t really believe they can do it or believe in what they’re doing which causes them to fail. What keeps you in the game is the pure passion. Passion and skill are the two key variables for success and the rest will follow.

 

I do not come from a wealthy family, I worked hard for everything that I have. Believe me when I say, I have had a lot of failures but I never gave up and that’s key as an entrepreneur. No matter what has thrown your way, you keep pushing through until you make it and you will eventually.  I’m used to fighting and I like to win, and that’s what it’s all about.

At each stage of its life cycle, a startup needs funding. No matter how great the idea is, its implementation requires certain resources, both financial and material. Thus, each startup gets to thinking how and where they can attract such resources. So, let’s see what startups need and what they can do to get it.

Angel Investors and Venture capitalists are often mentioned together when talking about gaining capital for your company however, they are very different. An angel investor is a individual who uses their own funds to invest in a business. Usually they are successful business people. Venture capitalists funds a business with a pool of money from a professionally managed fund. Angel investors are  individuals who contribute their personal money to support startups they find promising. Their primary interest is not only in receiving the return on their investments but also in wanting to keep the pace with the current trends and to share their expertise with younger entrepreneurs.

Venture capitalists, on the contrary, are companies and funds whose financial assets belong to other corporations or funds. In other words, they are responsible to their partners for the money they are prepared to invest into an idea, and this fact influences the approach they take to startup financing.

1. Finding connections

The best way to get the attention of an investor is through a mutual connection. Investors don’t want to meet you, they want to be introduced to you. They come by many start-ups just like yours bombarding their emails and voicemails. In order to get ahead of everyone else, the best way to attract an investor is by finding a mutual connection between the two of you and use that as your in. Being introduced to an investor through this mutual connection will give you a much better chance at getting a meeting with them or even to have them answer your email. Out of the many start-ups that come their way, the one that will peak their interests is the one that was referred to by someone they know and trust

2. Use your Network

Surrounding yourself with the right people will become useful to you and your start-up. Creating a network filled with credible people and other entrepreneurs will be advantageous because you can turn to them for help, or they can point you in the right direction. This will serve as an extremely beneficial tool. You can create a network of people by attending workshops, start-up events (ie Startupfest), accelerators or really any networking events. There are so many different events you can attend to that are made specifically for networking. So get out there and make as many connections as you can because you will not regret it.

3.      Find an investor that is also a partner, not just a check

It’s important to do research on the investors you want. You don’t want to reach out to an investor who has no experience in the industry your start-up is in. Firstly, you will be wasting your time reaching out to these investors because chances are they are going to turn you down. Second, it will become of more value to your start-up if you chose an investor who has a background that correlates with your start-ups industry. An investor who can help make your business stronger whether through advice or industry connections and knowledge will ultimately serve you better than an investor who has money to offer and nothing more. Look into each investor and research what other start ups they have invested in.

4. Have co-founders

When you approach investors, you’re not just selling them on your product or service; you’re selling them on your team. Having a good team in place will increase the chances at gaining the attention of an angel investor. It gives your company a bit more credibility knowing that it isn’t backed by just you. Not to mention, having a good team is more attractive as each member brings a different background that can contribute to the success of the company. An investor will be ore inclined to invest in a company that is able to deliver in every aspect.

5. Email

Once you’ve found your connectors, reaching out to them needs to be a sprint not a marathon. You need to set up the email in a way where you can get a quick yes or no response. Follow up within 4-7 days and if you get no response then you move on to the next person. Every email you send needs to be very clear and straight to the point. Everyone gets hundreds of emails a day so you need to be efficient with it. You need to have a clear killer subject line, make it short, forwardable. Give them an easy out therefore you get a quick yes or no response.

PME co-founder Stephen Bronfman, CEO of Claridge, weighs in on what we’re learning from this pandemic, and the mindset needed to get us through:

We’re gonna have to bounce back, like a lot of people have. I’m a glass-half-full kind of guy; I believe in people. I believe in resiliency and strength. I know we’re gonna get through this, and we’re all gonna have learned a lot. A lot about the basics of life, about ourselves, about our environment, about health, about family, about unity, about teamwork. And about pride. And I think we Canadians, Quebecers, Montrealers, deep down have a lot of pride.

Entrepreneurs are constantly searching for the big idea that is going to make them successful. There is a misconception that in order to start a business you initially need a great idea to start with. Rather than looking for ideas, you should be looking for problems and coming up with solutions. Stop brainstorming for weeks for an idea and start identifying problems that already exists. Brainstorming for solutions is so much more valuable and an efficient way to get a startup going. What is even more valuable is if you have a personal connection to this problem. Is this a problem that you, your family, your peers or even your community faces? Having this personal connection to the problem will be extremely advantageous to you. It will give you that drive and motivation that every entrepreneur needs to get a startup going and you’re more likely to offer a unique perspective. By having a personal connection, you will be able to identify if the solution you propose something that is somewhat viable.

Brainstorming

Brainstorming with friends is the perfect opportunity for you to start thinking about cofounders you might want to bring on. Finding people you can effectively trade and build ideas off is the perfect step to finding a cofounder. You will be able to identify how you work with them and if you get along well right away. Ideally, your cofounder should be someone you get along with and share the same values and goals. Brainstorming together will give you a taste of how you can work and build with them. Sharing ideas with friends is not just a good way to find cofounders but also an efficient way to find a problem, hear their thoughts, and get some validation.

Research

Once you have found a problem, try to think what kind of unique perspective you can bring to the table. It is helpful to research what other solutions exists and compare them to any ideas you might have had.  Identify the failures in the solutions that already exist by competitors. Evaluating what possible competitors are out there and determining how their solution can differ from yours can allow you to bring new ideas to the table that nobody else has done. How can you offer a unique perspective from the solutions that are already out there.

If a solution to your problem does not exist, then you should ask yourself why there is not already a solution. It might mean that your problem is not something that affects a big enough market meaning you will have to go back to brainstorming.  This is where having a personal connection can give you another advantage because it might help you look at the problem in a way that nobody else has seen it. What can you bring to the table that somebody else has not tried?

Don’t get Attached

It is important to remember the first solution you come up with or prototype you build is only the first step. Never become attached to your first idea as changes and adjustments are bound to be made, it’s part of the process. Never fall in love with the idea but fall in love with problem and the customers. Know that there is always room for improvement and do not treat your solution as the final product.