New Business Models don't need to raise cash or build strategy first.

They need to work on building uniqueness. The desire to show immediate traction of the business venture leads to a model where founders focus on tasks that get them started but leave the biggest questions un-answered. This leads to burning precious cash early on and it becomes too late to solve issues that are must be overcome to scale.

Here is the approach that should be taken for new service models and tech problems:

Starting with Real Customers can Make or Break a Service Business Model

New X as a service model only works if customers find value in the solution.

X as a service model takes a series of available components (Hardware or Mini-services) and puts it together to run a end-to-end service. The fastest way to put a service together such as grocery delivery as a service is to try to execute a transaction with real customers before doing anything else.

This immediately highlights execution challenges whether it is logistics, sourcing, mobile app - which allows a focused plan to form.

Solving the Hardest Tech Problem first can create Models that Scale

Technology that can meet difficult regulations or overcome hard constraints can define whether a model will fail or is viable.

Product-driven businesses need to focus on building the hardest technology components first before they can even put together a plan to sell and scale. This approach makes products like Tesla (Focusing on long-range batteries first) or Zipline Drones (Focusing on sensors that can see aircraft without transponders) viable as they suddenly become 10X better than substitute products.

Once the technology is in place scaling becomes more viable

Competition is for losers - Focus on building USPs so products and services are 10X better than the next.