We help you design, test, and implement a scalable business model
We agree with Steve Blank who views a startup as “an organization formed to search for a repeatable and scalable business model.” In this search, entrepreneurs are like explorers, “searching for a new world, where everything—customers, markets, prices—[are] unknown and new.”
Thought leaders like Steve Blank, Alexander Oster, and Geoffrey Moore pioneered work creating tools and processes to help entrepreneurs with their business model explorations. While insightful, their guidance is mostly qualitative.
However, a business model describes how your company makes money. The long term success of a startup, even Amazon and Uber, is fundamentally driven by quantitative metrics such as unit economics, profitability, and cash flow.
Ulu helps entrepreneurs understand the full range of downside risks and upside possibilities in different business model design choices. This collaboration starts in our diligence process. In our Market Mapping exercise we work with you to create a map of the key drivers of risk and value in your market opportunity. This map can become a financial guide for identifying the most promising initial markets, pricing models, customer acquisition strategies, etc.
It is not uncommon for startups to change business models (pricing, target markets, distribution channels, etc.) from just the Market Mapping exercise alone.