Page 100 - Transforming an Idea Into a Business with Design Thinking

Chapter 5

Stage 3: Craft Business
to Know Viability

Most start-ups fail not because they didn’t find the right problem to solve
for the user demographic or that their solution lacked technological prowess
but because they could not figure out a sustainable business model for their
idea. Similarly, most hugely successful start-ups didn’t just understand the
problem of their user demographic and build solution to solve the problem.
They crafted a business model that made them hugely successful. For exam-
ple, Google, while helping users find more relevant websites using their
superior algorithm, figured out an advertising business model that until this
day generates 9 out of every 10 dollars of its revenue.

It is critical to understand the business context in which you are play-
ing, the value proposition to your user demographic and various aspects of
the business model as you embark on this exciting journey. This stage will
guide you through all the key aspects of crafting a business.

5.1 Step 13: Business Context

Before we craft the value proposition for your business model, it is impor-
tant to understand the external context your business will be operating in.
Statistics do not favor the success of start-ups. Only one out of 10 start-ups
ends up achieving some form of success. Most start-ups just focus on their
idea and do not spend enough time thinking about the externalities affecting

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