Tue. May 28th, 2019

Shhhush!! Don’t Share Your Business Model with Pakistani Incubators

So frustrating to see that incubators want you to present a business model? Are you afraid that your idea will go wasted and someone else will make a startup out of it? What is holding you back from executing your “IDEA”?

Idea isn’t idea until it’s executed - Ajmal Paiman (DYS2017) 
This is exactly why you need a business model for idea to have self sustainable growth. Business model is very important - at the end you need the start up to be sustainable and generate a return, otherwise why would anyone invest in it (other than for charity). If you haven’t developed this skill yet, spend some time and learn it or partner with someone who can do this for you. But don’t even think about launching a start up without this discipline being in place.

Must Cover these Four Things in Your Business Model:

-How much and how will you generate revenue?
-How much would it cost to deliver the required product/service?
-How much investment is required?
-How much time would it take to recoup the initial investment (payback)?
I personally believe, if you don’t know how to execute it or how to present its business model, then it is surely not a business idea. It is just like a random thought that thousands of people discuss everyday in their free time (At times when they are sh*tting).

Related: Why has Pakistan Startup Culture Failed Before it Actually Begun

Incubators are scouting camps

Are they? Blaming incubators is just an excuse. If you don’t have business model, how will you even run a business. Just google what business model is, its no rocket science. Just two three straightforward things and its done. No incubator want a perfect model, all they need to know is your understanding of the problem you are solving. I have never seen a selection criteria that is purely based on business model. Considering you had great ideas which someone else executed well, have you ever tried next time to add someone in your team with good business and execution skills?

One of them is idea validation which is to be done by prototyping. That’s why people keep pivoting till you find the right answer. An Idea isn’t really “Execution Dependant” at all. It’s still an idea, though, with some cash in hand and experienced and sincere people to work with, the very idea can be worth billions one day. Man’s Flight was once, an idea, too.

Realted: Lessons from Reality TV Pakistani Game Show Jeeto Pakistan 2017

Newsflash - your business model will always be wrong when starting out, but the exercise itself is more important. Forces you to structure your thoughts in a way to plan goals, not what you’ll have to do 100% correctly to achieve them. There’s no way that guarantee success of your business model unless you execute it. Just do a quick prototyping and test it in the market. 

Shortcut!
It’s simple without proper business model your idea will remain the idea not the business. Investors first question in the mind always creeps how would you make money? Evangelize your product/idea with a broader mindset. I prefer use Business Model Canvas to make your idea clear. Before business plan what you need to know is a thing name as BMC. Business Model Canvas is a very summarized version of Business Plan. Try to write down your idea on the nine blocks of BMC (Download Below) and take it from there to create a 10 slide pitch deck. 
Logical Framework Analysis

In many respects the problem analysis is the most critical stage of project planning, as it then guides all subsequent analysis and decision-making on priorities.This business canvas is a great logical framework analysis tool.

If you can still ask ‘how?’ questions and not find the answer in the draft Logframe (with the accompanying draft workplan showing activities), then it is not complete. - Red Cross (2006: 23)

Aw… somebody stole your idea? Stop Whinning! There’s always room for more startups even with similar or very similar ideas! Asking for a business plan is for the incubator to understand what you’re doing more simply, and for you to demonstrate an ability to communicate more effectively to a potential investor or customer.
Marketing Plan Template

Download our free marketing plan template and start planning a marketing action plan that will help you reach your customers.

s

Pin It on Pinterest