Life of a Business Owner

Formulating hypotheses

Our business success depends on how well we can come up with and test hypotheses. Here is a template I find particularly useful:

Such and such people/companies today are spending on

some budget categoryfrom which they spend 

indicate how often money on 

products-services.

We are planning to take a share from that budget category.

Our main competitor is

companywhose products are used most often

or the traditional wayof spending money on this category.

We can displace them because we are better at 

critical parameter for the users because we are doing 

something differently.

This template for AirBnB looks the following:

People today are spending on travelfrom which they spend every time money on lodging.

We are planning to take a share from that budget category.

Our main competitors are traditional hotel chains.

We can displace them because we are cheaperfor the users because we are allowing people to rent from private persons.

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