How can you diversify your revenue streams and reduce risk in Startup Development?

Understanding your audience and the value proposition of your product is the first step. Consider you are standing at one end of a small lake and your friend standing at the other end. You have to cross the lake to reach your friend. Now, you'll only go to your friend if your friend has something to offer that you require. You'll not cross the lake unless you are getting what you want. Right? Same goes with the consumer and his requirements. The customer will come to purchase your product if it adds value to him. A clear, concise and compelling product can turn a CUSTOMER Into CONSUMER.

There is one thing way more helpful than using canvasses to fish out your core value proposition: talk to your potential customers. Do not pitch your idea, but listen to their problems. If you talk more than 10% of the time, you are not doing it right. The better your value proposition aligns with their problems, the easier it is to sell.

Break down the steps in manufacturing and development and look for intermediate products. For example, a novel textile might be made from novel fibers and those fibers might have a novel component or process. Any value and market for the fiber, component, or Process? So: What can you make right now? What can you make with a few inexpensive development steps? Price point? Where does it add enough value for a customer? What investment does a customer make to use it? Referring to complex manufactured innovations that offer significant efficiencies or other value.

Instead of using a canvas tool to analyze your revenues, google for an excel sheet that contains a financial model for startups. Most likely you will not die from a lack of revenue, but from a lack of cash. So it is not just how much and from whom, but when.

Although it is always a good thing to create a robust financial structure for your startup, the goal should not be "how can I generate as much income from my value proposition and related activities". Instead, think about your customer: how can you create value for them in different ways?

Validation is not done by jotting this done on a canvas. Canvassing is a first step. Desirability is not determined by you, but by your (potential) customers, so get out of the building and get talking!

Right Segmentation, Targeting and Positioning for your product/ services can make YOUR CUSTOMER YOUR CONSUMER. Understanding Customer and Consumer is the key metric of a business.