This principle applies as much to software design, as it does to every other kind of startup, and to keeping a business running, in general.
General Business Models
The general outline for a business plan (whether written or not) that explains why the company will succeed.
The Tetrahedral Model
This paper presents a way of visualizing the important aspects of a business. These are the bases you need to cover to get one started. The fundamental three legs of the tripod: Technology, Marketing, and Finance. Roofing the pyramid: Organization. Pinpointing the foundation: The organization’s Purpose, or mission.
Who you can sell to. Having selected your target audience in general terms, the next step is to define the specific needs of that market, and the value proposition that will motivate a purchase. You create a general picture of potential buyers, how much of a market they represent, how much it costs to penetrate that market, and the shape of the adoption curve.
Investment decisions are based on interlocking variations of the induction hypothesis. This model determines when sensible investors will invest, and when they won’t. Understanding that model tells you what you need to do to get investors to decide in your favor.
The Third Time is the Charm
Why entrepreneurs tend to succeed on their third venture.
Company-Specific Business Models
Parts of the business plan, and the models used to generate them.
What the product has to do to win in a given market. A scenario that shows how it is used. Component listing and risk analysis.
The end result of many years’ operation should be a big deal! The plans that show “how you get there from here” are the growth models for the different legs of the tetrahedron.