The Customer-Funded Business (Review and Analysis of Mullins' Book)
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About this ebook
This complete summary of the ideas from John Mullins' book "The Customer-Funded Business” tells you to forget about the complicated methods of securing start-up funding. According to Mullins, the best way of getting the funding is from your future customers. If you can find enough customers who will pay for the solution that you’re offering to their problem, this is the perfect way of starting a customer-funded business.
There are five different customer-funded business models:
1. Matchmaker
2. Pay-in-advance
3. Subscription
4. Security/Flash sales
5. Service-to-product
This summary will take you through all five of these different business models, giving you all the information you need to decide which approach will work best for you.
Added-value of this summary:
• Save time
• Stop applying for start-up funding and get the money from your future customers
• Find out which customer-funded business model is right for your business
To learn more, read “The Customer-Funded Business” and find out how you can secure start-up funding from your customers!
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The Customer-Funded Business (Review and Analysis of Mullins' Book) - BusinessNews Publishing
Book Presentation: The Customer-Funded Business by John Mullins
Summary of The Customer-Funded Business (John Mullins)
Book Abstract
Since time immemorial, the accepted approach to securing start-up funding has generally been:
Come up with a great idea
Write a business plan
Raise some venture capital
Get rich!
That's all well and good but the odds of getting funded that way are not that great. Out of the 5 million ventures which seek startup funding each year in the United States alone, only about 1,500 will get funded by venture capitalists and another 50,000 will be funded by angel or other investors. Seeking start-up funding the conventional way is hard work.
A much better approach is to forget about securing venture capital entirely and instead get your future customers to fund your startup. If you can find enough customers who will pay you good money (ideally in advance) for the solution to their problems you're in the process of creating, then you won't need to raise capital anywhere else.
There are in fact five viable customer-funded business models you can use:
Matchmaker Pay-in advance
Pay-in-advance
Subscription
Scarcity/ Flash sales
Service-to-product
To get start-up funding, don't go looking for investors. Find a pool of customers who want what you plan on selling and get them to fund you. It's a much better way to go.
The best money comes from customers, not investors. Selling a product or service early in the life of a company provides great feedback and the cash needed to refine the idea.
- Bill Sahlman, Harvard Business School
About the Author
JOHN MULLINS is associate professor of management practice, marketing and entrepreneurship at the London School of Business. He is also