I have 3 that stand out as most common:
- We have no competition: If there is no one else doing what you are doing, how are the consumers currently solving the problem? E.g. in a online food ordering business, if there is no other brand does not mean that there is no competition. ‘Calling up the restaurants using menu cards available at home’ is your competition.
- “We are cheaper, hence we have a stronger value proposition”: Well, in many instances what the entrepreneurs meant was that they will sell cheaper.. which is different than being a lower cost producer. And, at least in my observation, most often the assumption of ‘we are cheaper’ was based purely on being a smaller and hence leaner company and not based on any fundamental competence or process that allowed them to retain the cost advantage, if any at all.
- “According to Gartner, the market is USD 80 billion by 2015”: Now, this has no relevance to a startup. More so if any case all you were trying to achieve anyway was USD 10 – 20 million in revenues in 2015. Startups should build their model ground up and not top down. I.e. they should think in terms of how much it costs and what does it take to acquire and service one customer and hence what is the possible revenues within what you are trying to do.
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