Laws of TNerd: Concepts vs. Solutions for Start-ups and Entrepreneurs

Posted by Abbas ||

February 5, 2008 ||

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Laws of TNerd Concepts vs Solutions Web 2.0 is a catchy yet meaningful term which defines innovation, creativity and technology. There are lot of new companies coming up based on Web 2.0 concepts, some of them are really good and some “good today, gone tomorrow”.

I have seen a lot of companies coming up with concepts which cannot sustain for a long time and eventually they fade away. The best business model is the one which solves a problem, one which delivers a solution. It also depends how and where the solution is delivered. If the targeted solution is aimed at a problem where no revenue is involved then the solution will not be able to generate revenue thus questioning the longevity of the business.

The question is, what’s a good revenue generating model and how do I come up with one? This is a very crucial question and can change lives from good to worse if not given enough thought and other way round if given enough thought.

Lets see what is a good business model and how should we come up with one.

What is a good business model?
A good business model is the one which has a very clear revenue generating stream (Not through advertising products such as Adsense etc… such business models can sustain individuals but not companies). A business model which allows people to create business around it will most certainly succeed and will gather a lot of support and not only sustain but grow quickly (Example: eBay, Google Advertising, FaceBook with Applications).

How should you come up with a strong business model?
Business should always be based on your interest, experience and expertise. Once you know your interest, then look where most of the money is earned or spent in that category and try to find problems/hindrances or ways to improve the processes and improve the revenue generating capabilities.

If a business model can do the above then 99 times out of 100 it will be a hit. Everything in this article is based on my opinion and observations, feel free to disagree and leave comments but if you agree with the article and come up with a business model based on what you read here, I am entitled 20% partnership in your business