A Strong Business Model: The Foundation of Success
A well-functioning business model is at the heart of every successful company and plays a decisive role in the growth of any newly founded startup. But what’s the right approach? Should entrepreneurs focus early on analyzing market gaps, or should solving a customer problem be the starting point?
There’s no single answer—both approaches have led to remarkable success stories.
Brilliant Idea or Profitable Niche?
Some entrepreneurs focus primarily on where money can be made most reliably. However, this often means relying on existing markets, structures, and functionalities—rather than creating something truly groundbreaking. This strategy is frequently adopted by established companies that already operate in familiar markets and have strong customer relationships.
For example, when a bank expands into the insurance sector, it’s not revolutionary—it’s a logical extension of existing business. Startups, on the other hand, face a challenge: they usually start from scratch, without established market visibility or customer trust.
Many exciting startups, however, take a different route. Instead of chasing existing market gaps, they identify unmet customer needs — even those that seem visionary at the time. Consider the idea of space tourism: If people have always dreamed of traveling to the moon, a startup could work toward making it a reality.
Beyond extreme cases, history is full of successful businesses that were once dismissed as unrealistic.
– A user-friendly bank in your pocket?
– Real-time mobile communication?
– One-click shopping?
– A single platform for all health data?
– A car that suggests your route — or even drives itself?
Many of these ideas were once considered far-fetched, yet today they are everyday realities.
Game-Changing Business Models
At the core of truly disruptive business models is often a simple yet powerful customer problem. Companies like Uber and Airbnb didn’t just create products — they revolutionized industries by solving everyday challenges in ways that provided real, tangible value.
However, this approach comes with risks. Customer needs evolve quickly, and what seems essential today might be obsolete tomorrow. A hyper-focus on solving one specific problem can also lead to tunnel vision — making it easy to miss larger market shifts or technological breakthroughs.
Let’s not forget: For every successful visionary startup, there are countless others that failed.
History is full of ideas ahead of their time — brilliant innovations that only became commercially successful years or decades later, often without the original founders. Sometimes, the technology wasn’t ready; other times, legal or societal changes needed to catch up.
Boring but Profitable?
Not every business needs to be flashy or revolutionary to be successful. However, understanding customer needs is non-negotiable. Businesses that fail to address pain points will struggle to survive.
That said, financial success doesn’t always require an outstanding customer experience. Sometimes, the key lies in identifying trends and forecasting where demand will emerge. The best-case scenario? Being ahead of the next big wave and positioning the company strategically for long-term growth.
Instead of waiting decades for an idea to become relevant, this approach involves analyzing entire market gaps rather than individual problems. While this may feel less visionary or creative, it can be highly effective. However, it also carries a major risk—focusing so much on market trends that you lose sight of actual customer pain points. The result? Products that may be innovative, but not necessarily useful or market-ready.
What Really Matters
History is filled with technological marvels that never found an audience — brilliant ideas that failed because they didn’t meet a real demand. Likewise, large corporations have entire archives filled with market research that never turned into action.
So, what’s the best approach? The reality is, most successful startups combine both strategies — customer needs and market opportunity. These two elements constantly influence each other, shaping the business model, product offering, and long-term strategy.
However, the most critical factor isn’t the strategy — it’s the people behind it.
A founder’s mindset, skills, and experience shape the approach they take. Rarely is it a choice between black and white — most entrepreneurs naturally lean toward one method or the other. The key is self-awareness: understanding which approach has been dominant so far and actively balancing it with the other perspective.
Building a strong founding team also plays a major role. The more diversity in perspectives and expertise, the stronger and more adaptable the team becomes. However, this only works if there is a clear vision and seamless collaboration among team members.
Long-term success requires both approaches — solving real customer problems while strategically identifying market opportunities.
What’s Your Take?
As a newsletter reader, we’d love to hear your thoughts! Do you think solving a customer problem is the key to success, or is market analysis the better approach? Let’s discuss — share your feedback, questions, or insights!