What’s your startup? (MSID assignment)
Earlier this week, for our Design Business & Entrepreneurship class, we were broken down into teams and we were supposed to present on a topic. My team picked Entrepreneurship and we each picked out a subject to talk about and possibly help anyone who is thinking of going down this path in the future.
I decided to talk briefly about startup and the different types of market types for startups. The goal of my talk was to enlighten my classmates about the different market types and why it was important to understand them.
STARTUP (n.) — a temporary organization designed to search for a repeatable and scalable business model
Here the keyword is temporary because a the goal of a startup is to eventually become a large company. Repeatable business model means they’re looking for something that works on Monday should also work on Wednesday and so on and so forth. A startup is constantly searching for the right customer, distribution channel, right product, partners, resources and the cost.
The four market types:
- Existing Market — Users exist and so do competitors
- New Market — No competitors but difficulty to find users since you are creating something completely new
- Re-segmented Market — Finding and targeting a niche inside the existing market that the competitors have overlooked
- Clone Market — Taking an existing successful business model and then adopting it in the international market
Now, why we need to understand where we belong is important because the market changes everything like your market size, cost of entry, competitive barriers, sales model, profitability, customer needs and many more.
Stepping into the startup game without the slightest idea of which market type you belong to hints at failure. So, be wise!