Our Business Model
Posted on November 10, 2011 by ThePMJournal
When I was employed in F-Startup I was told:
-We want to conquest the world! For this, we need to create the greatest application on the market. Our Business Model is very simple: we want to make big money taking few from many…
I always wanted to create great products that will inspire people, but never to become rich. In F-Startup, the main objective was to earn a lot of money and the second one to become famous. This approach proved to be wrong! Historically speaking, the most successful companies wanted first to create exceptional products and just after that become rich, but never the opposite.
In my search to discover the “miracle” product to make us rich and famous, I start to analyze niches industries: insurance, banks, health services, social networks, advertising, enterprise applications, etc. After months of searching, I have found several “winning” ideas. Based on those ideas, I created product concepts and a three years road map. Some products had Break-Even after two or three years, others maybe never…
The estimated Return of Investment (ROI) was enough to sustain the operations of our new start-up, but shareholders were not satisfied and they ask me for more: “We want to get very rich, very quickly, with a small amount of investment.” (It sounded crazy! How can you get rich in short time, without invest a lot of money? Inevitably, I was asking myself: Are these people really with the head in the clouds or are incredible thieves? and In my mind, naturally appeared, for the first time, the following dilemma: To stay or to run away?
In short time, I realized the only business we could make us rich with minimal investment were “pyramid” businesses (similar to MLM). I never believed in this kind of businesses models, because usually involves scams and that’s why I tried to find a different approach. After long negotiations, we all reach the conclusion we need indeed to build a pyramid scheme, but under the hood of a social network. The way was concept our pyramid, should have been changed the perception of the pyramid business models. For people working in MLM networks, what we wanted to create seems a contradiction in terms: a social network where all the people are equal, but in the same time anyone could reach in the top (not only the heads/richest) depending on their spending and activity inside network. Even from the beginning, we figure out what we are going to do will be either something colossal, either a “flying” shit.
All my adventure in F-Startup started in November 2011, along with a group of enthusiastic shareholders, totally detached from reality as myself, but with many great ideas (F-Startup looked like a company of almost insane people). Day and night I was working at definition of business model based on a mathematical model (insane, but hardworking). During this period I almost saw my family, dreaming for conquest the world. I will never forget the cold and foggy nights of November, smell of blast furnace in the air and the thoughts about “how will be when we will create the greatest human pyramid ever built and where all the people are all equal“. Before I sleep, in the dark of my room, I keep writing the latest thoughts and send my conclusions to shareholders.
Thinking retrospective, I could say was the most “romantic” period of entire career. While walking on the street I was simulating mathematical models, while eating I was chewing ideas… But dreaming period, shortly reach to an end: I realized in order to succeed in a start-up you need not only great ideas, but also great people behind ideas. It was obvious just from the beginning, our business model haven’t the full support from all people involved.
Read further the story of A Fatidic Day.
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