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Aarihant Aaryan
Prev- Founder & CEO ...ย โขย 1y
There's a huge difference between building a mediocre business, sizable business and a great business Here's how you can know if your idea will turn into a mediocre business, sizable business and a great business There are 3 important components of building a business: Monetization, retention and acquisition Monetization is if consumers will really pay for what you're solving, how many consumers can pay for it and how many times will they be happy to pay for it Retention is how frequent the problem is for the consumer, how frequent will the consumer use the solution and is there really a friction to reactivate the usecase Acquisition: How're you going to be bringing users? What's the ideal cost to bring users? How're the conversion numbers going to look like? Medicore Businesses: A mediocre business doesn't have high Monietisation or high retention or low acquisition - fundamentally these businesses are not stable, ex: cheap course businesses, Ho Sizable businesses: Even if your business has either one of these, high Monietisation ( where many people are paying or high cheque sizes of payment) , high retention or low acquisition cost - you can build a sizable business in India. Ex: Unacademy, Spinny, creator led products Great business: Great businesses are built on top of great retention, even if it is a micro pricing, it'll turn out really well just because it has amazing retention, or huge opportunity to make money via cross sell, upsell becomes easy because of the retention ex: Payment gateway businesses, credit card business, marketplace businesses, quick commerce If you're ideating, create an MVP and see which category your idea fits, honestly it doesn't make sense to build a mediocre or a sizable business - If you do it, it's jus suffering all the way
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