Finding the right model

While it is a challenge to find the right gap in the market, it is also a challenge to find the right model to monetize the opportunity and make it into a viable business.

Very often, opportunities do not translate into viable businesses due a lot of hidden costs, unforeseen obstables, regulations, team issues etc.

Here are some of the things that I've seen working in trying to find the right model:

1. Define the canvas: Define the scope of your market and the outer limits. That makes it easier to take yes/no decisions when presented with an immediate opportunity that is not in the line of business you decided to start.

2. Talk to customers: Spend time talking to your customers about their experiences with your product/service and how you can improve. You might find that the reason they are buying your product/service is very different from the reason you made it in the first place!

3. Try multiple models: Don't overspec the product. Create quickly. Release in the market. Listen really hard to customers. Improve. Release again. A quick turnaround will help improve the product faster. It is important to fail quickly if it is not working and focus your energies on a new model.

4. Talk to the ecosystem: Lot of other players in the ecosystem (not necessarily competitors) have a lot of knowledge about how things work in this space. Talk to them. Pick their brains.

5. Talk to experts/advisors: Reach out to folks that have the experience of building businesses as well as folks that have functional expertise. Grasp the prevailing knowledge and wisdom.

6. Follow your instinct: Finally, filter all of this with your judgement. If you dont feel good about it, dont do it. If you feel it is right, go ahead even if everyone else thinks it is a waste of time.

And if it doesn't work, go back to Step 1.