1. Business Model
A good business model gives a fantastic competitive edge over all other players in a space. The emphasis J&M Lab puts on business model is well known by entrepreneurs we crossed on our path. A breakthrough technology that is not delivered through a well thought-through innovative business model will miss the mark. “Business model innovation can itself be a pathway to competitive advantage if the model is sufficiently differentiated and hard to replicate for incumbents and new entrants alike.” (David J. Teece “Business Models, Business Strategy and Innovation”, 2010).
A business model is much more than a revenue model. The basis to design a superior business model is a proficient understanding of the customers addressed. Only once such knowledge is acquired can a sharp, efficient value proposition be devised. It generally involves the whole value chain that provides the most economical way to deliver value, but also the most attractive to the customer.
The ideal business model finds ways to have costs borne by the ecosystem, and where customers are part of the value creation.
We assist entrepreneurs in designing business models to maximize value. The implementation of a winning business model, generally following a period of trials, takes almost always more time than anticipated. It is well worth it, as ultimately it will allow for an outstanding performance.
2. Planning
Planning is an ongoing process. Horizons may appear to cut the function in tranches. From yearly budgets to 10-year plans, to project planning, large corporations have been familiar with the job, and many tools have been devised to help in the process. Startups do not have the luxury to see clearly 10 years ahead. What they have however, that lacks in many giants, is a clear vision of the end goal and a higher flexibility. A 3-year plan that integrates the detailed budget for year 1 and estimated inputs for years 2 and 3 is a good start.
Developing a process to analyze the gaps compared to the plan, and update or correct the plan to maintain the highest probability of achievement helps avoid a meaningless approach to planning. A blind walk into the future can be avoided. Such a 3-year plan is a rolling plan. The budgeting exercise often concluded two months before the start of the period under review is the opportunity to refresh the plan, amend it and move forward.
3. Risk Analysis
There is no strategic advice without a thorough analysis of risk. Identifying threats, building tools to mitigate the risk are a core part of strategy. Technology startups face threats from all corners. They must raise preventative barriers wherever they identify a threat. Estimate how these barriers can be circumvented is difficult.
We help prioritize the threats, and evaluate which need to be addressed and what resources to dedicate to properly maintain a low-risk operation. The remaining risks to which the business is exposed must be at an acceptable level. Otherwise, a whole review of the element that is subject to an unacceptable risk level may force the closure of such element, despite the opportunity envisioned at first when it was brought in.