Search mode: ON!

Last week, we began the “How To Build A Startup” course on UDACITY by Steve Blank. In lesson 2, we learned that start-ups are not just smaller versions of large companies, but that each actually has a different primary function. According to Blank, the main function of a large company is to execute, while the main function of a start-up is to search. This basically means that large, established companies need to focus their resources on delivering their product, optimizing processes, and managing operations. Start-ups, in contrast, must focus their resources on searching for optimal solutions to problems, testing solutions, learning from mistakes, and finding/refining their business model.

As our class follows along the video lessons, we’re implementing the processes that we’re learning to create our own start-ups together. That means that we are officially in “search” mode! This week we moved from ideation into more concrete concept development and began to split into two preliminary groups based on interest. After synthesizing a lot of ideas that were generated last week, my group determined based on our shared interests that we would try to develop a business model that provided services for artists in some capacity.

The big question guiding us through this process this week and next is one that I wrote in huge letters at the top of my notes:

“How do you create value in a way that generates revenue?”

Although this question isn’t exactly anything earth-shattering, I feel that a lot of entrepreneurs wanting to build a start-up probably miss one of these points. For example, many people want to make money but don’t have anything of value to provide, meaning they’ll have no paying customers. Other people have value to provide but can’t figure out how to generate revenue from it (or are uncomfortable charging money/underestimate the value).

This question is one that I plan to continue repeating over and over in my head as we progress further into this project, and as I work on my own personal projects. I like that using this question as a starting point leaves the possibilities for a solution so open-ended, without prescribing any particular end result. This contrasts with the “old method” which was reviewed and debunked in our video lesson, that looks like this:

To be continued next week!

 

–Sam