Best Business Models for Startups: 2024 Prediction
The fintech sector in 2023 has experienced unparalleled expansion, marking its prominent role in the worldwide financial landscape.
As per EMR's data, the global fintech market reached a significant valuation and is projected to expand at a CAGR of 16.8% during 2023-2028, targeting a market size of USD 492.81 billion by 2028.
The rise in online transactions, the growing appeal of mobile banking, and the emergence of blockchain technology stand as a testament to this fintech metamorphosis. The shift towards a cash-free society and the urgency for on-the-spot financial solutions further fuel the appetite for cutting-edge fintech offerings.
However, amidst the enormous promise the fintech realm presents, there's a core principle to bear in mind: the longevity and triumph of a fintech startup are predominantly influenced by its selected business strategy. This encompasses the firm's unique value offering, target demographic, scalability, and, crucially — revenue generation.
Recent studies indicate that fintech startup profitability might not be as rosy as perceived. Analysis from 2022 reveals that around 400 Neobanks globally catered to nearly a billion users. Yet, a mere 5% of these innovative players achieved the breakeven point.
A Comprehensive Guide to Choosing the Right Business Model for Your Fintech Venture
So, you've landed here with a groundbreaking startup idea. It's unique, it's cutting-edge, and you're convinced it can redefine the industry landscape. But the question arises: how can you mold this idea into a profitable business structure?
Embark on this detailed guide to navigate the path to the ideal business model for your startup.
1. Deciphering Your Market and Client Preferences
Let's kick things off by identifying your audience. Delve into comprehensive market analysis to truly grasp your intended clientele. Move beyond mere age and location demographics; dive into their lifestyles, habits, necessities, and challenges.
The crux is to pinpoint a distinct issue your startup is poised to resolve, ensuring you're attuned to that challenge to drive profitability.
2. Navigating the Regulatory Landscape
The fintech arena, regardless of being situated in the US, UK, or elsewhere, is often bound by stringent regulations. Familiarize yourself with both global and local regulatory mandates that may intersect with your operational framework.
For illustration, the guidelines governing open banking can differ widely across borders. A strategy that's viable in Canada might hit a wall in Switzerland due to regulatory nuances.
3. Assessing Your Tech Blueprint
Your technological framework transcends merely crafting an app or digital platform. It's about ensuring adaptability, fortifying security, and delivering an impeccable user journey. It's vital that the business model you opt for dovetails with the tech backbone you possess or intend to develop.
Say, if you're leaning towards an API monetization strategy, your APIs should be fortified, agile, and expandable to meet anticipated requirements.
4. Gauging Funding and Financial Resources
Distinct fintech business structures demand varying levels of capital commitment. Some may necessitate substantial initial capital, while others could be more cost-efficient.
Evaluate your fiscal health and your capacity to secure investments, opting for a model in sync with your financial roadmap.
5. Strategizing Alliances and Collaborative Ventures
In the fintech domain, partnerships can pivot your business trajectory. Whether it's teaming up with traditional banks for data insights or joining forces with tech giants for seamless integrations, such affiliations can reshape your business blueprint.
As an example, forging a partnership with a big bank might make strategies revolving around API access charges or transactional fees more enticing.
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Steve Blank: AI will revolutionize the ‘lean startup’
As you’ll have noted from our coverage, as far as startup land is concerned, AI is hot, hot, hot.
Meanwhile, the lean methodology — think of a hypothesis, test it, iterate on it — has been canon for entrepreneurs and founders the world over for the past decade. But AI will most likely play a role in building startups faster, cheaper and more efficiently. So I asked the man who invented the concept of the lean startup, Steve Blank, to see what he thinks.
AI might not have started with ChatGPT, but the ability for the general public to interact with generative AI on a wide scale did. But even still, Blank says we’re collectively underestimating the potential of generative AI.
Blank highlights how AI-assisted research has made leaps of progress in the form of AlphaFold, a project that is trying to translate proteins into their three-dimensional structures, which can help us understand processes in the body, including aging. AI, obviously, goes far beyond, and we’ve only just started to see the tremendous evolution that will span all sciences. Blank might be on to something: Just last week, researchers at University College, London and Moorfields Eye Hospital in the U.K. identified markers for Parkinson’s disease in eye scans using AI.
The original content of the note was published on TechCrunch.com. To read the full note visit here
Embracing Product-Led Growth: The Shift Toward User-Centric SaaS Solutions
It’s time to say goodbye to traditional marketing-driven strategies and hello to product-led growth (PLG)! I believe the shift toward user-centricity is about to revolutionize the way we think about software as a service (SaaS). According to UserGuiding, 21 large companies have implemented PLG with a total market capitalization of $208 billion, and MarketSplash has found that the brands that have adopted PLG harness 60% higher average revenue per user than non-PLG brands.
Based on my experience, let's explore how embracing PLG can lead to success for SaaS companies, providing tangible benefits for both businesses and their customers.
The Rise Of Product-Led Growth In SaaS
PLG is reshaping the SaaS landscape by focusing on user-centricity and instant gratification, leading to higher conversion and retention rates. According to Emerge, “PLG companies have 60% more ARPU (Average Revenue Per User) than non-PLG companies.” PLG is all about letting users experience your product firsthand and allowing its value to speak for itself. This can provide a number of benefits, including:
-Sense Of Ownership
One of the key advantages of PLG is its ability to foster a sense of ownership among users. By allowing individuals to discover and engage with a product at their own pace, you give them a way to develop a deeper understanding of its features and benefits and discover its value before they invest in it.
-The Snowball Effect
PLG also empowers SaaS companies to scale quickly via virality and network effects.
-Data-Driven Product Development
PLG equips companies with smart tracking to help them gain user insights, identify pain points and make data-driven decisions.
Three Strategies For Implementing PLG In SaaS
1.The Freemium Model
Consider offering a self-serve free trial or freemium model in SaaS to provide immediate value. In my experience, this model can often bypass sales engagement and speed up adoption while collecting helpful user data. Freemium models are generally designed so that, once hooked, users can easily upgrade for more features.
Embed social sharing in your product, and incentivize referrals by offering rewards to those who bring in new customers. This win-win situation can turn satisfied customers into loyal brand advocates who bring in new customers.
3.Product-Led Conversion Funnel
Traditionally, marketing funnels were driven by generating leads, which were then handed off to sales for closure. In PLG models, the focus is on building an in-product conversion funnel. This involves streamlining the user journey from sign-up to long-term usage, minimizing friction and showcasing immediate value.
Challenges With Adopting A Product-Led Growth Model
As with any system, there are potential challenges when adopting product-led growth. For example:
1.Sustainable Customer Acquisition: A great product attracts customers, but they need to know it exists first, especially before you have cultivated solid word-of-mouth referrals. Consider implementing targeted marketing and sales channels to sustain your growth and maximize revenue potential.
2.Continuous Innovation: User needs are constantly evolving, so keep innovating and iterating to ensure your product keeps meeting those needs. I recommend investing in R&D and incorporating ways to maintain team agility into your overall plan.
3.UX Design: It can be hard to create a seamless UX that drives continuous product adoption. I recommend continuously A/B testing your UX elements to find what resonates most with users. Menus and options should be intuitive, as complexity is often the enemy of adoption. Integrate tooltips, walkthroughs and tutorials so that learning is part of the experience.
Overall, embracing a product-led growth strategy requires putting your product at the forefront and using it as a catalyst for success. By focusing on delivering immediate value and empowering users to become advocates, your SaaS company can unlock great growth potential in today's competitive landscape.
The original content of the note was published on Forbes.com. To read the full note visit here
Driving Innovation in the Pharmaceutical Industry: The Alliance Between Bioxentys and Mobilenik
The pharmaceutical industry is constantly evolving, and innovation is key to staying at the forefront in a highly competitive market. In this context, we are pleased to announce an exciting strategic alliance between Bioxentys and Mobilenik, two leaders in the field of artificial intelligence (AI).
The collaboration between Bioxentys and Mobilenik represents a bold step into the future of the pharmaceutical industry. Both companies share a common vision: harnessing the power of AI to transform and enhance efficiency, productivity, and compliance in the sector.
What makes this alliance so special?
- Innovation in AI Solutions: Bioxentys and Mobilenik are committed to developing cutting-edge AI solutions tailored specifically to the needs of the pharmaceutical industry. From process automation to advanced data analytics, these solutions are designed to make a difference.
- Compliance and Quality: In the pharmaceutical industry, compliance is essential. The collaboration focuses on ensuring that all AI solutions meet the strictest standards and regulations, providing pharmaceutical companies with the confidence they need.
- Operational Excellence: AI can drive operational excellence in pharmaceutical laboratories. Bioxentys and Mobilenik's solutions aim to increase efficiency, reduce errors, and accelerate the time to market for pharmaceutical products.
- Active Collaboration: This alliance involves not only technology integration but also active collaboration with customers. Both companies will work closely with their customers to customize solutions and address specific challenges.
This exciting collaboration represents a commitment to the future of the pharmaceutical industry, where AI will play a fundamental role in improving quality, efficiency, and innovation. If you want to learn more about how these solutions can benefit your company, feel free to get in touch with us!
The alliance between Bioxentys and Mobilenik is a step forward in the pursuit of excellence and innovation in the pharmaceutical industry. We are excited about what the future holds, and we look forward to collaborating with you on this exciting journey of transformation. Stay tuned for more updates and exciting developments!
Growth Marketing Strategies for Web3 Brands to Achieve Product Market Fit
Marc Andreessen defined Product-market fit as finding a good market with a product capable of satisfying that market. Marc is often credited with developing the PMF concept
In other words, it is the point at which a product satisfies a strong demand within its intended market, resulting in widespread customer adoption, engagement, and satisfaction.
Generally, PMF is characterized by many factors which could be Customer Demand, Usage and Adoption, Customer Satisfaction, Engagement and Retention, Competitive Advantage, etc.
Many startups often focus on reaching this stage before scaling their operations and investing heavily in marketing and expansion efforts.
If you remember the early days of Netflix, how they originally started as a DVD rental service but then achieved PMF when they transitioned into a streaming platform.
They identified a growing customer demand for convenient and on-demand access to a wide variety of movies and TV shows.
And then capitalized on the shift toward online streaming.
It’s not just Netflix as a startup that has hit PMF, other brands like Apple, Tesla, Lemlist, Nike, Airbnb, Slack, Meta (Instagram, Facebook, Whatsapp), Paypal, Superhuman, Stripe, Supreme, and Linktree amongst many other hundreds of startups have also hit PMF.
It’s my belief, however, for PMF to happen, the Product and the Market must be fitted together. Sounds cliche, however, that fitting is like a bowl of spices — filled with different spices — all mixed and called Brand Connection.
Many of these brands I mentioned went viral, people loved their products, and till now, their core customers are true stans; they have a strong brand connection.
This means that if Virality is always engineered from the get-go, so also, Brand Connection is engineered from the get-go too.
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Role of Agile Methodology In Redefining Mobile App Development Industry in 2023
‘Agile Methodology’ - one of those buzzwords that has been in the limelight for quite a few years now. From mobile app developers to testers to professionals with a technical background, they are well of how important the agile practices can be. This is one of the main reasons why we decided to cover this topic of agile app development.
In this article, we will be covering some of the major segments related to the agile scrum methodology including the meaning of agile scrum method, its benefits, as well as, the adoption of this technology.
What is Agile Scrum Methodology?
The term agile methodology can be defined as the practice of promoting continuous iteration of software/application development and testing throughout the complete lifecycle of that particular project. One of the main things that separate agile methodology with the waterfall method is its concurrent execution of activities.
Now, let's talk about the agile scrum methodology which is basically an agile software development method. The scrum methodology is one of the most widely known agile app development methods.
This agile scrum methodology can also be referred to as the method which is a combination of various agile models like the iterative model and incremental model. Due to the functionalities of multiple agile models, agile scrum method is very popular for managing the development of the product.
Differentiating Between Agile And Waterfall Methodologies
As mentioned above, both the agile method and the waterfall method are quite different from one another. So here is the list of some of the main differences between waterfall and agile methodology:
-In comparison to the waterfall method, agile is considered flexible and allows dynamic changes to be made in the software or app development.
-In agile development, the lifecycle of the project development is divided into sprints whereas in the waterfall method a sequential development process is followed.
-In the waterfall, the testing plan is not prioritized but in agile methodology, it is reviewed after completion of every sprint.
-Agile Scrum methodology offers a high degree of coordination as well as synchronization whereas waterfall has a rigid and limited structure.
-The agile methodology is simply a collection of various projects and for waterfall methodology, the software development process is considered as a single project.
-In waterfall, there is no iterative process that means once phases like testing and development are complete there won't be any iteration.
-In agile, we can alter the description of project details anytime during the SDLC process which is not possible in the waterfall development method.
How Agile Methods Helps Companies In Developing High-Quality Mobile Apps
Nowadays, the main aim of mobile app developers is to deliver high-quality applications with respect to their target audience’s preferences. But this high-quality status is not that easy to achieve as there are various hurdles that need to be crossed first. This is the part where agile methodology comes into action.
The original content of the note was published on Mobileappdaily.com. To read the full note visit here
Embracing Community-Led Growth To Unlock A Brand’s Full Potential
You may have heard of marketing-led growth, sales-led growth and product-led growth strategies. Now, it’s all about community-led growth. With each new version of growth strategy, prior strategies get morphed, expanded, and yet support one another. They take on new avatars to fuel the growth engine of the organization. With the more recent emergence of user communities, there comes community-led growth. Community-led growth acts as a multiplier on top of many of the growth strategies.
There are several technology companies that have successfully implemented community-led growth strategies. Slack has a thriving community of users who share tips, tricks and best practices for using the platform. This has helped to establish Slack as the go-to communication tool for many businesses. HubSpot has an active community of marketers who share insights and advice on inbound marketing.
So, what’s the common thread that keeps these communities engaged and thriving, and establishes themselves as thought leaders in their respective industries? In my mind, there are five key core values or principles for community-led growth.
Purpose: A strong sense of purpose is crucial for any community. There is a shared vision among community members that gives them a reason to be part of the community, which is aligned to the brand vision.
Involvement: Encourage active involvement from community members by providing opportunities for them to contribute and share their knowledge. This is usually done through discussions, collaborative projects or even hosting events. By fostering a sense of involvement, it creates a more engaged and loyal community.
Oneness: Cultivate a sense of belonging and unity among community members. Encouraging open communication, collaboration and mutual support, which can help to create a strong bond between members. This sense of oneness makes the community more resilient and better equipped to achieve its growth goals.
Excellence: Leverage the power of social proof by showcasing the success stories and achievements of community members. This will inspire others to join the community but also motivates existing members to continue contributing and engaging with the community.
Innovation: Encourage innovation within the community by providing resources, tools and opportunities for members to experiment and develop new ideas. This can help to keep the community at the forefront of the industry and ensure that it remains relevant and valuable to its members.
I believe these five core values—purpose, involvement, oneness, excellence, and innovation—can help foster a strong, engaged and loyal community that not only supports the brand but also drives sustainable growth. The true power community is a united and passionate group of individuals who share the brand’s vision and values.
The original content of the note was published on Forbes.com. To read the full note visit here
How Enterprise Sales Can Supercharge Product-Led GrowthAppropriate resource allocation
Despite the recent reset of technology sector valuations, product-led growth (PLG) software companies continue to outperform.
PLG has caught fire in software markets. It focuses on enabling end users to discover, try, buy, and scale up their usage in a self-service manner. Many companies adopt a PLG strategy from day one and add traditional sales-led commercial motions over time. Meanwhile, sales-led software companies can add a PLG motion or take a hybrid approach by applying the PLG model or capabilities to select parts of their product and customer portfolios—for example, relying on a sales team for the initial sale, then shifting to PLG self-service for renewals or expansions.
PLG works best in markets where product configuration and deployment time are usually quick; end users can make purchasing decisions; the product is sticky, with usage growing over time; the potential customer base is broad, with lots of free users who can convert to paid users; and the product has features that entice users to upgrade to the next, higher-priced tier.
But in markets suited to PLG, what’s surprising is how many companies continue to struggle with the key to unlocking its full potential: enterprise sales.
Breaking through the ceiling
It may seem counterintuitive to integrate a live person into a business model tied to self-service. Nevertheless, getting end users to discover, sign up for, and engage with a product on their own can be challenging, especially if the product is complex or all its benefits aren’t obvious.
Plus, once PLG companies reach a critical mass of users, they often hit a revenue ceiling that’s tough to break through. As customer spending on an individual software vendor grows, the extra scrutiny and required budget approval by senior leadership can become roadblocks.
A dedicated sales team can help PLG companies move beyond one-off software purchases within enterprises and land bigger deals across the customer’s organization. Sales, customer success, and support teams can also unlock new avenues of growth for both customers and vendors by helping end users scale up product usage beyond what they could do alone.
Integrating enterprise sales and self-service
Many companies have difficulty seamlessly marrying enterprise sales with a product-led sales motion. The product, customer success, sales, and marketing teams share ownership of the customer journey and touch the same customer experiences, so without well-defined connection points and an operating model that effectively integrates the distinct functions, companies will have trouble maximizing growth. Leading companies focus on three things.
.Defined triggers for a person to engage with a customer
.Clear collaboration strategies
.Appropriate resource allocation
The original content of the note was published on Bain.com. To read the full note visit here
Lean Into AI To Advance Product Innovation—But Do So With Caution
While generative AI is taking the business world by storm, it’s important to note that it’s not necessarily new. Many of today's promises for AI were also made in the past. It was less than 40 years ago that LISP machines, packed with expert knowledge, were supposed to unlock the promises of AI. What went wrong? ''People believed their own hype,'' said S. Jerrold Kaplan, cofounder of one leading artificial intelligence company, TeKnowledge. So as generative AI occupies massive mind space for most innovative companies, the question they must ask is, “Are we doing this the right way?”
Unfortunately, many aren’t. In fact, there’s a bit of an Ouroboros vibe—the ancient symbol of a snake eating its tail. As companies rush to use AI, they’re making mistakes that could cost money and put the organization in jeopardy.
With that in mind, let’s explore how companies can use companies AI to forward innovation while protecting themselves.
Tap into AI for product ideation and brainstorming.
Product people must always find the next big thing or improve upon the last big thing. Even the most creative teams may stare at a blank whiteboard and scratch their heads, trying to dream up compelling ideas.
Generative AI is great for ideation. For example, input your identified customer problems and use AI to think of potential solutions. Then take each of those solutions and ask how to solve them. To be clear, you’re not going to find transformative innovation in the answer, but AI can help guide your team toward new ideas that you can discuss.
And that’s the key—find novel ideas that align with your company’s overarching innovation goals. From there, use human smarts to build them out.
It’s essential to understand the problem they are attempting to solve. That requires listening and thinking—not just assembling data from various sources. Currently, humans are better at that.
Use AI’s product development capabilities.
Product development is built on key performance indicators (KPIs) that guide product people from ideation to launch. But what KPIs should you choose? This is a perfect job for AI, especially for companies that track diverse and complex metrics for products.
Use your knowledge of the industry you’re targeting and your organization's data and let AI guide you toward KPIs that will help keep product development moving forward and on time. Another bonus: Your AI research may uncover new KPIs you hadn’t thought of previously but may make more sense based on the product.
Incorporate AI into InnovationOps.
Companies are adopting an InnovationOps philosophy, which operationalizes innovation to build innovative philosophies into corporate DNA. The idea is to bring together an organization’s people, processes and innovative jobs to be done.
Keep AI human-based.
A common fear many have about generative AI is that it will take their jobs. Not exactly. It’ll be a human who understands how to use AI. Don’t underestimate people's importance in making AI a driving force in your innovation efforts.
Safeguard your IP and brand.
Don’t put anything into an AI tool you wouldn’t want to show up in someone else’s query or give hackers access to. While inputting every bit of information you can think of in an innovation project is tempting, you have to be careful. Oversharing proprietary information on a generative AI is a growing concern for companies.
Research and refine AI output.
Generative AI’s knowledge isn’t up to date. So your query results shouldn’t necessarily be taken at face value. It probably won't know about recent competitive pivots, legislation or compliance updates. Use your expertise to research AI insight to make sure what you’re getting is accurate.
The promise of AI in innovation is huge, as it unlocks unprecedented efficiency and head-turning output. We’re only seeing the tip of the iceberg as it relates to the promise the technology holds, so lean into it. But do so with governance—no one wants snake tail for dinner.
The original content of the note was published on Forbes.com. To read the full note visit here
Learn How To Drive Sustainable Revenue With Product-Led Growth
The pandemic caused unexpected growth for some companies due to changes in our behavior. Zoom, Slack, Shopify, Netflix, and Square were well-positioned for this growth because they focus on product-led growth, also known as PLG.
These companies were able to experience hypergrowth during the pandemic by delivering an exceptional product experience that meets customers' needs in a rapidly changing environment. By focusing on product-led growth, these companies were able to weather the challenges and emerge as leaders in their respective industries.
1.Ask the right questions to evaluate Product-Led Growth's success.
Here are some key questions that can help assess the success of a product-led growth strategy and where to focus when implementing one.
1.How well is our product meeting customer needs and solving their problems?
2.What is our customer acquisition cost, and how is it trending over time?
3.What percentage of our growth comes from product-led channels like word-of-mouth and organic search?
4.How effectively are we using data and analytics to drive product decisions and inform the go-to-market strategy?
5.What is our net promoter score, and how has it been trending over time?
6.How well are we retaining and growing our existing customer base?
7.What is the feedback from our customers on product features, and how can we improve?
8.How well do we integrate product, marketing, and sales efforts to drive growth?
9.How do we build cross-functional solid alignment across the organization to execute a product-led growth strategy?
10.What are the metrics to measure success and set the right expectations with key stakeholders?
Answering these questions can provide insights into the effectiveness of a product-led growth strategy.
2.Embrace innovation as a critical component of Product-Led Growth.
Innovation is a critical component of product-led growth. A PLG strategy requires continually delivering new and improved experiences to customers. Tweaking, testing, and measuring parts of the user experience helps us keep our users more engaged and drive growth, even as we enter a period of increasing consumer thriftiness. This requires a culture of innovation where new ideas are encouraged and rapidly tested—and failures are seen as opportunities to learn and improve.
A successful growth strategy requires product-led growth and innovation, regardless of external economic conditions. Companies must prioritize the customer by continuously delivering new and improved experiences through innovation to attract and retain customers. This approach can help drive customer engagement and achieve sustainable revenue growth.
3.Build a community that adds value to your customers.
While having an enthusiastic customer base is excellent, if you can turn that user base into a community capable of supporting one another and sharing knowledge, you have the potential for a home run.
With relatively little effort from your company, a community can add exponential value to your users. Establishing a community may be as simple as setting up a Facebook group for verified users to talk with each other, monitoring that, and engaging where appropriate. Tracking the amount of user-generated content and the number of members provides a window into your community's health.
Follow the data—this will help identify the features that are your selling points.
This can show you where to focus your R&D for future iterations. And with a product-led growth strategy, reinvestment in your product is the key to everything.
As businesses look for more cost-effective ways to grow, a product's value proposition that delivers a great customer experience becomes increasingly compelling—and customers are less likely to "churn." This creates new opportunities for companies that have embraced product-led growth and innovation to differentiate themselves from their competition and achieve sustained growth through whatever economic waters are flowing through the moment.
The original content of the note was published on Hackernoon.com. To read the full note visit here