A business is a repeatable process that makes money. Everything else is a hobby. —PAUL FREET, SERIAL ENTREPRENEUR AND COMMERCIALIZATION EXPERT Roughly defined, a business is a repeatable process that: 1. Creates and delivers something of value… 2. That other people want or need… 3. At a price they’re willing to pay… 4. In a way that satisfies the customer’s needs and expectations… 5. So that the business brings in enough profit to make it worthwhile for the owners to continue operation. It doesn’t matter if you’re running a solo venture or a billion-dollar brand. Take any one...
Note: business in a nutshell
1. Urgency—How badly do people want or need this right now? (Renting an old movie is typically low urgency; seeing the first showing of a new movie on opening night is high urgency, since it only happens once.) 2. Market Size—How many people are actively purchasing things like this? (The market for underwater basket weaving courses is very small; the market for cancer cures is massive.) 3. Pricing Potential—What is the highest price a typical purchaser would be willing to spend for a solution? (Lollipops sell for $0.05; aircraft carriers sell for billions.) 4. Cost of Customer Acquisition—How...
Note: evaluating a market
Product. Create a single tangible item or entity, then sell and deliver it for more than what it cost to make. 2. Service. Provide help or assistance, then charge a fee for the benefits rendered. 3. Shared Resource. Create a durable asset that can be used by many people, then charge for access. 4. Subscription. Offer a benefit on an ongoing basis, and charge a recurring fee. 5. Resale. Acquire an asset from a wholesaler, then sell that asset to a retail buyer at a higher price. 6. Lease. Acquire an asset, then allow another person to use that asset for a predefined amount of time in exchange for...
Note: economic value
Find a way to give people more flexibility, and you may discover a viable business model.
Note: options