Innovative Business Models

Steve Blank, author of The Startup Owner’s Manual, could not be more correct about the dangers of following a static business model. Keeping a business model dynamic, flexible, and adaptive will permit the flow of a particular project to move with ease within particular contextual challenges that a setting may impose. Failure to adapt to unprecedented obstacles may drive an investment to the ground. Although static business models attempt to address all of the potential risks that may appear during the establishment of a startup, it will never be able to recognize all of them. There are many unexpected risks that appear mid-way. Having the ability to quickly address and systematically eliminate them is crucial for the success of a start up. In this way, any business model should leave room for uncertainties.

However, this is not just a problem for entrepreneurs starting in the United Sates, but also for those visionaries entering emerging markets. Using a business model that may work in the United States may not have the same rate of success in a country with a completely different cultural background. No business model can work cross-culturally unless it is adapted to meet the challenges of other cultures. Adapting to a new cultural context may lead to many setbacks, or to a redesign of previously states hypothesis. However, a business model that allows changes of strategy will help an entrepreneur refocus and accomplish its desired objectives.

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