I think one of the puzzling things about start-ups is a lack of appreciation for basic business analysis models such as Porter's 5 Forces. Having a large custo

I think one of the puzzling things about start-ups is a lack of appreciation for basic business analysis models such as Porter's 5 Forces. Having a large customer means handing over a lot of power to your buyer. Although they may empower you, they can also empower your competitor. Another way I like to describe this is Australia's contractor law, which states something along the lines of: if more than 80% of your income comes from one client, you are an employee and not an independent contractor. Most start-ups only seem to care about competitive forces relating to industry rivalry, threat of new entrants, and threat of substitution. Start-ups are usually very aware of substitution threat as companies that claim to be "disruptive" are attempting to be the substitution threat to an incumbent. However, many overlook the power of suppliers and power of buyers. A large client demonstrates the power of buyers. The situation between Netflix and Starz shows the power of suppliers, or Spotify and the music industry. Anytime someone is trying to build a platform with vendor lock-in, they are trying to build their power as a supplier. I hope for start-ups that when valuing an investor, a key criteria is their ability to provide a business perspective that may not be immediately obvious to a technical or sales/marketing focused founder. It may also be beneficial be for more people read up on business books/practices as they embark on their entrepreneurial journey.