Along their entrepreneurial journey, some entrepreneurs constantly think of better and simpler ways to describe their business. This is an evolutionary process, as their business model undergoes refinement. So, when they meet new people or investors, they can often quickly describe what their startup exactly does.
Then of course, there are others, who build their business identical to another already-successful startup. Or, their business model is similar to a successful startup in another domain.
While taking inspiration from innovative businesses is one thing, it is dangerous if you only look that far. It is amusing and unimaginative to hear things like, ‘my startup is an Uber in the ABC industry’. Or, ‘ours is an Airbnb’d Samsung.’ Wait what!
Or the fact that Ola has invested/committed a little fortune towards the acquisition of food delivery service Foodpanda’s India business from DeliveryHero to be able to compete with UberEats. While Uber would have understood (hopefully) a customer need, and worked to build it into their business model and possibly the very soul of what they do, seems like Ola simply reacted and followed suit. Something that could prove disastrous in the long term, considering all the financial burden Ola already bears.
But there is a deeper concern. While your business or the revenue model takes inspiration off of another business, it can lead to a short-sighted strategy approach. Because your focus remains that startup or company you take inspiration from. You might not have much of an idea about where that company is getting is inspiration from, and therefore innovating toward.
For instance, am sure a lot of startups must have taken inspiration of some sort or the other, from Netflix, a visionary entertainment company. But who would have guessed, till when its co-founder and CEO, Reed Hastings announced that Netflix doesn’t exactly compete with the likes of Amazon, but rather with with their customers in general, and specifically with their customer’s sleep. How cool was that!
Which means Netflix has far greater clarity on present and future strategy, compared to companies who are simply modeling their growth strategy based on what they see or read about Netflix.
It completely transforms how you see the customer and therefore, how you evolve and grow. Better than being reactive with something like, “Prime’s launching a show around XYZ, what can we do ASAP!”
What inspires your startup?