Assuming we are talking about the original business model, not Groupon Goods, the short lived Groupon Now and whatever else they have been attempting to do with Breadcrumb etc, it’s more complicated than what people think, but it’s also genius. There’s a lot of learnings for you. The single best one though is, “if you aren’t embarrassed by what you …
Parable of defensible software network by Fred Wilson
Fred Wilson posted a parable on his blog in 2014 that is instructive in explaining that software alone is a commodity and in order to create defensibility you need to embed a network. Fundamentally, there is nothing stopping anyone over time from copying a feature set, or adding incremental benefits (e.g. making it better, cheaper, and faster). If you can create a …
Barkbox: Barking mad? Why some business models applied to other verticals can work
I read an article the other day (Note: I actually wrote this a few months back) on Pando Daily about a company called Barkbox in the states that has applied the Birchbox business model of monthly subscriptions to dogs. My friend sent me the link and initially I thought it was silly. I am not generally a fan of this …
Shrinking a market and owning it
I was talking shop on Saturday night with a VC and he mentioned offhandedly an anecdote about owning markets, but it was a little peculiar as it involved actually making the market smaller. In my OCD like fashion I did some reading and I think this concept is a learning worth sharing. The anecdote, you ask? Well, it is this: …
Your solution is not my business problem
TL;DR; A blog to explain why the business problem your startup is so important and how your solution needs to be an outcome to that problem Harvard Business School marketing professor Theodore Levitt once said on problems, “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!” Founders spend too much time trying to create products with features rather than …