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Business Value - Towards Ideal Business Model •Analysis of business models answers questions concerning why and how a enterprise is, or will be, viable and valuable. That’s creating Business Value! • You should ask yourself questions such as: • Where are our revenues coming from? • What value is delivered to which markets? • What costs are involved in delivering that value? • Are our perceived key activities and key resources as important for gaining revenues as we think they are? • If we change our model in a specific way, what are the effects?
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Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
Creating the Ideal Business Model
Business Owners destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
The Ideal Business Model
Food for thought
• Have you ever seen
a talented entrepreneur struggle?
• Have you ever seen a so-so entrepreneur becoming wildly successful?
• How do you explain why some talented people have to work too hard for success and other less talented people seem to print money?
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” The Pareto Law
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
The Ideal Business Model
What is Pareto Trap? • The Pareto Rule or 80/20 rule states that 80% of the
benefits come from only 20% of the activity.
Only 20% of your business’ success come from: • Your talent as CEO/leader
• Every business book you ever read
• Teamwork/Teambuilding/Motivation
• Salesmanship
• Marketing and branding
• And more…
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
The Ideal Business Model
Premise: Pareto Trap • 80% of your business’ success can be attributed to:
• Your industry
• Your Business Model
What si a Business Model?
• “The proprietary methodology used to acquire, retain and service clients.”
or… • “The business model is the manager’s logic that will allow an
enterprise to: • Capture the market opportunity; • Mitigate risks; • Identify the required resource set; • Create business value for investors and founders.”
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
Your talent as CEO/leader Salesmanship
Every business book you ever read Teamwork/Teambuilding/Motivation
Marketing and branding, etc
• Your Business Model
• Your Industry
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
The Ideal Business Model
The Industry
• You cannot relevant influence your greater
Industry if you are not big enough!
• You only can have some influence on the
narrow market you act on.
• But you are influenced by Industry
conditions: clients, supliers, competition!
• The best way to influence Industry is your
Business Model!
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
The Ideal Business Model
OK – Prove it! • Examples of companies in the same business with far
different results:
• Mc Donald’s/Hardees
• USPS/USP
• GM/Toyota
• Dell/Gateway
• Nucor/US Steel
• Wal-Mart vs. Big Lots
• Blockbuster vs. Netflix
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
The Ideal Business Model
Bottom Line
• Your business model needs to be constantly
analyzed, improved, and tweaked.
What is a Business Model change?
• Structural changes to how to attract, retain and
service clients.
• Anything else is just tweaking your existing
model.
More bad news
• ALL business models if unaltered eventually fail!
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
The Ideal Business Model
Business Model Analysis • Analysis of business models answers questions
concerning why and how a enterprise is, or will be, viable and valuable. That’s creating Business Value!
• You should ask yourself questions such as:
• Where are our revenues coming from?
• What value is delivered to which markets?
• What costs are involved in delivering that value?
• Are our perceived key activities and key resources as
important for gaining revenues as we think they are?
• If we change our model in a specific way, what are the
effects?
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
Do you think
your Business Model works
towards your Vision above?
Where do you want to be with
your business
in next 3-5 years?
Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You” Business Owners Destination: ”A Commercial, Profitable Enterprise, That Works, Without You”
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