A startup is a temporary organization searching for a profitable, repeatable and scalable business model.
Profitability and repeatability are rather obvious requirements for a startup. Not so much for scalability. Does a startup really have to look for a scalable business model?
Well the idea is that if your business is not scalable, you are likely to be a craftsman who produces value in linear proportion to the time spent. But if you really want to create additional value you have to step out of the production picture and start crafting the business instead of the product.
The craftsman builds objects made of parts or pieces that fit together and create something more valuable that the sum of the parts themselves. A mechanical watch is more than a simple collection of wheels, gears and mechanisms. The craftsman is the agent that makes this possible thanks to his expertise of creating a blueprint and building the object according to it.
- The realm of the craftsman is products.
- An entrepreneur goes one step further into the realm of Business.
In this perspective the entrepreneur should not focus on the product so much as on the business. Focusing on the product instead of the business is a typical fallacy of many aspiring entrepreneurs which if not addressed properly will lead in the best case to a craftsman activity and in the worst case to a product without customers.
While the former could be desirable to many, the latter is definitely undesirable. But we are going to talk about it in some further post about Customer Development.
- Focus on product -> hobbyist
- Focus on product + customer -> craftsman
- Focus on product + customer + business -> entrepreneur