This week in my Web Business creation class we read a very interesting article, written by Mark Lee, titled Brainstorming Business Ideas. Now although the article was over a decade old, written in December 2007, the authors thoughts on business startups and technologies are still relevant today.
As a class we were asked whether we should come up with a product/service before or after deciding on a business model. Interesting question and at first, a question that was easily answered. Upon first thought, I assumed the product/service would be the first concept to tackle but deeper thinkers, often think about the business model first.
Lets look at the subscriptions business model, which is extremely popular right now. The subscription model is a business that delivers a product or service on a regular basis, usually monthly. If I were thinking smart, I would want to be able to sell my product or service through a subscriptions business model. A subscriptions model allows me to know what my revenue will be for the month. The key to enhanced profitability for subscription models is selling products or services that are good enough to lengthen the life of the average subscription.
So what does come first, the product or the business model? I think it varies depending on the entrepreneur!