Crypto Business Models
Value Model
- Identify a market opportunity and evaluate its potential size (TAM)
- Define a clear problem to solve
- Develop a core value proposition and additional value propositions as you scale
- Establish a mission and vision for your company
Technological Model
Research & Development with latest technology to form enduring competitive advantages.
- Implement a two-sided approach: 1. Sustain continuous innovation for business model expansion 2. Place bets on breakthrough innovations for long-term success
- Allocate resources to bridge the gap between customer needs, product, and distribution
- Aim to satisfy different market segments, from early adopters to laggards
- Dedicate 10-20% of company resources to breakthrough innovation
Distribution Model
- Develop a strategy to reach, frame, communicate, fulfil, and sell the product to the right audience
- Balance engineering, marketing, and sales efforts based on your product and target market
- Consider partnerships and deal-making as part of your distribution strategy
Financial Model
- Design a sustainable revenue model
- Optimize your cost structure
- Aim for profitability while managing cash flow effectively
- Consider the following components:
- Revenue streams
- Cost structure
- Profitability
- Cash generation and management