Ladies and Gentlemen, What's Your Business Model? Part #3

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by: Sigurd Rinde

Following up on ‘what’s your business model? #2‘:

When talking to potential partners and customers I’m asked about our specific ‘pricing model’ and our ‘path to market’ – typical Business Model issues.

To that I answer, straight-faced:

"We are extreme business-modelling. We’ll have the answers when the time is right."

And then I turn the question to "what do you think is the right price?" and "how could this product add value to your company?".

Those of you who are geeks probably know the concept of ‘extreme programming‘, a methodology, a set of values to steer a program development process. Perhaps useful for more than programming?

A few important aspects of extreme programming, eh, extreme business-modelling:

  • Write a user story. Explore the value for the customer!
  • [Extreme business-planning specific: Acid test your pricing and margins. If you could easily deliver at half the price of the competition, you may be good. If you’re pretty sure you can deliver at 1/10th you’ll have the leeway to play really loose :)]
  • The customer (even the potential one) is always available. Involve the customer, use him, make him a part of the process.
  • Pair programming and collective code ownership. Involve the customer again, let him have ownership to your product!
  • Make frequent small releases. Test one thing at a time, don’t get stuck with a half-baked and untested complete plan.
  • Iterate and integrate often. Test and try, go back make better, test and try again, go back…
  • Leave optimisation till last. When it gels, shape the last parts, refine when the basics are right!

Funny thing, even the potential customers likes it.