On August 26th, these two great people with different backgrounds were invited by BLOCK71 to have a chat about things that many startups definitely will question. It's Agustiadi as Program Director of Innovation Factory and Agung as CEO of Warung Pintar, talking about the business model of a startup.
Have you ever heard of a unicorn startup? The unicorn that give an impact on many people, the unicorn that has a high revenue. Well, building a startup that will turn out to become a unicorn isn't that easy. Some startups still prioritize their growth without having a plan on how to build a sustainable business. Whereas, the founder needs to pay attention to how their business model is going to be.
So, how important is the business model?
Many people say that "every time we invest in a startup, we invest in people." Initially, if you want to invest, the first thing you have to focus on is the founder itself. Is the founder good? Does the founder care about the problem and the value they wanna give? Because as Agus said, he believes that a good startup founder will grow up with the right business model. If you have a good business model but the founder isn't as good as it is, it will end up nothing.
While the founder is something that definitely will come first, the business model is still important in the startup journey. But it's not important to figure out the right business model in the beginning. A few things you have to focus on are those who are passionate about the problem they're trying to solve; those that are trying to provide value in whatever they're trying to do; and along the way, it's important to figure out the right business model so then you can build a sustainable venture.
And speaking of value, it's the most important thing when you first start to build a business. You have to build the value based on the problem! What's the market's problem? What's the value we wanna bring? and of course, how can you make money from that?
For Agung who still runs Warung Pintar for about 3 years, finding the right tune of the business model is hard. It happens iteratively. They still have to find out and turn in their business model. As he said that a startup by definition is a company that grows very fast, and again if the business model is stagnant or it can't follow the market, then we do it wrong. And at the end of the day, how you create value and how you make money from the value that you created matters the most. A business model is not something static. A business model that might work today, might not work in 1,2, or 3 years later. So then again, it's something that you have to fully pay attention to. What's the market needed, is what we're gonna bring them into.