Part Four - Business Models Analysis

Pros and Cons of Pros and Cons of Business Models Business Models

By Val A. Slastnikov,By Val A. Slastnikov,

Business Models ExpertBusiness Models Expert© 2010 Digitizer Group. All rights reserved© 2010 Digitizer Group. All rights reserved

PART FOURPART FOUR(Business Models (Business Models

Analysis)Analysis)

Business Models AnalysisBusiness Models Analysis

Businesses are not created equal. Businesses are not created equal. As a result, the level of Success of As a result, the level of Success of

Business owners in various Business Business owners in various Business Models is not equal either.Models is not equal either.

Common ElementsCommon Elements Startup and Carrying costsStartup and Carrying costs Control FactorControl Factor LeverageLeverage Customer baseCustomer base Growth PotentialGrowth Potential Replicability Replicability ScalabilityScalability Multiple Income StreamsMultiple Income Streams ProfitabilityProfitability

Startup and Carrying costsStartup and Carrying costs

Startup Costs:Startup Costs: Expenses incurred in relation Expenses incurred in relation to the creation and the development of a to the creation and the development of a business model.business model.

Carrying Costs:Carrying Costs: Expenses of living in and Expenses of living in and maintaining the business model. This includes maintaining the business model. This includes mortgage payments, property taxes, heating, mortgage payments, property taxes, heating, repairs, maintenance fees, etc. repairs, maintenance fees, etc.

Control and LeverageControl and Leverage

Control:Control: A process implemented in a A process implemented in a business model to help in achieving specific business model to help in achieving specific goals.goals.

Leverage:Leverage: Your ability of having a superior or Your ability of having a superior or more favorable position in a business model.more favorable position in a business model.

Customer Base and Growth Customer Base and Growth PotentialPotential

Customer Base:Customer Base: Total list of customers Total list of customers available to a business model, as well as the total available to a business model, as well as the total number of potential customers with specific number of potential customers with specific classification or buying characteristics.classification or buying characteristics.

Growth Potential:Growth Potential: Generally, an estimation of Generally, an estimation of the amount of growth yet to occur. the amount of growth yet to occur.

Replicability and Replicability and ScalabilityScalability

Replicability:Replicability: Capability of a business model to Capability of a business model to replicate itself. replicate itself.

Scalability:Scalability: Capability of the underlying business Capability of the underlying business model to offer the potential for growth within the model to offer the potential for growth within the company. company.

Multiple Income Streams Multiple Income Streams and Profitabilityand Profitability

Multiple Income Streams:Multiple Income Streams: Availability of multiple ways Availability of multiple ways to create income in a business model for higher profits.to create income in a business model for higher profits.

Profitability:Profitability: Efficiency of a business model at Efficiency of a business model at generating earnings.generating earnings.

Types of Business Types of Business ModelsModels

Self-EmployedSelf-Employed AffiliateAffiliate Franchise OwnerFranchise Owner InvestorInvestor Business OwnerBusiness Owner

Pros and ConsPros and Cons

Investor

BusinessOwner

Franchise Owner

Affiliate

Self-Employed

BusinessModels

Why is it important to Why is it important to know?know?

Saves you TIMESaves you TIME Saves you MONEYSaves you MONEY Helps avoid COSTLY MISTAKESHelps avoid COSTLY MISTAKES

To make it perfectly To make it perfectly clear…clear…

Your success in Life and Business Your success in Life and Business depends on the type of Model you depends on the type of Model you choosechoose

Pay Pay Attention!Attention!

Where do you go from Where do you go from here?here?

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PART FIVE