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Personal MBA Main Takeaway Pt. 1 by Josh Kaufman
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Personal MBA Main Takeaway Pt. 1 by Josh Kaufman

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In this show you will learn the bases behind every value creating business. …

In this show you will learn the bases behind every value creating business.

You will learn how to categorize businesses and how to create value in the 12 types of value creating businesses.

Published in Business
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  • 1. MainTakeAway:The Personal MBA Pt. 1 By Josh Kaufman
  • 2. The 5 Aspects of Business Your Company mustPossess, the 12 Forms of Value Creating Business , and How to Make Money w/ these 12 Forms of Business
  • 3. A Business Is A Repeatable Process That…1. Creates or Provides Something of Value that2. Other People Want or Need3. At a Price They’re Willing to Pay, in a Way that4. Satisfies The Purchaser’s Needs and Expectations and5. Provides the Business Sufficient Revenue to Make it Worthwhile for the Owners to Continue Operation
  • 4. The Basics1. Value Creation – Discovering what People Need or Want, Then Creating It2. Marketing – Attracting Attention and Building Demand for What You’ve Created3. Sales – Turning Prospective Customers into Paying Customers4. Value Delivery – Giving Your Customers What You’ve Promised & Ensuring they’re Satisfied5. Finance – Bringing in Enough Money to Keep Going & Make Your Effort Worthwhile
  • 5. “Don’t Expect Skills That Aren’t Related to the Five Parts of Every Business to beEconomically Rewarded. Find a Way to Usethem to Create Economic Value, and You’llInevitably Find a Way to Get Paid. Any Skillor Knowledge that Helps You Create Value, Market, Sell, Deliver Value, or Mange Finances is Economically Valuable.”
  • 6. A Venture A Venture that Doesn’t Create Value for Others is a Hobby A Venture that Doesn’t Attract Attention is a Flop A Venture that Doesn’t Sell the Value it Creates is a Nonprofit A Venture that Doesn’t Deliver What it Promises is a ScamA Venture that Doesn’t Bring in Enough Money to Keep Operating will Inevitably Close
  • 7. What About Successful Ventures? “All Successful Ventures/Businesses Sell Some Combination of Money, Status, Power, Love, Knowledge, Protection, Pleasure, and Excitement. The More Clearly You Articulate How Your Product Satisfies One or More ofThese Drives, the More Attractive Your Offer Will Become.”
  • 8. 12 Standard Forms of Value1. Product – Create a Single Tangible Item or Entity, Then Sell and Deliver It for More than What is Cost to Make2. Service – Provide Help or Assistance, Then Charge a Fee for the Benefits Rendered3. Shared Resource – Create a Durable Asset That Can Be Used By Many People, Then Charge for Access4. Subscription – Offer a Benefit on an Ongoing Basis, and Charge a Recurring Fee
  • 9. 12 Standard Forms of Value5. Resale – Acquire an Asset from a Wholesaler, Then Sell That Asset to a Retail Buyer at a Higher Price6. Lease – Acquire an Asset, then Allow Another Person to Use that Asset for a Predefined Amount of time in Exchange for a Free7. Agency – Market and Sell an Asset or Service You Don’t Own On Behalf of a 3rd Party, Then Collect a % of the Transaction8. Audience Aggregation – Get the Attention of a Group of People w/ Certain Characteristics, Then Sell Access in the Form of Advertising to Another Business Looking to Reach that Audience
  • 10. 12 Standard Forms of Value9. Loan – Lend a Certain Amount of Money Then Collect Payments Over a Predefined Period of Time Equal to the Original Loan Plus a Predefined Interest Rate10. Option – Offer the Ability to Take a Predefined Action for a Fixed Period of Time in Exchange for a Fee11. Insurance – Take on the Risk of Some Specific Bad Thing Happening to the Policy Holder in Exchange for a Predefined Series of Payments, Then Pay Out Claims Only When the Bad Thing Happens12. Capital – Purchase an Ownership Stake in a Business, then Collect a Corresponding Portion of the Profit as a One-Time Payout or Ongoing Divident
  • 11. To Create a Successful Service…Your Business Must:1. Have Employees Capable of a Skill or Ability Other People Require but Can’t, Won’t, or Don’t Want to Use Themselves2. Ensure that the Service is Provided w/ Consistently High Quality3. Attract and Retain Paying Customers
  • 12. To Create A Successful Shared Resource…Your Business Must:1. Create an Asset People Want opt Have Access to2. Serve as Many Users as You Can w/o Affecting the Quality of Each User’s Experience3. Charge Enough to Maintain and Improve the Shared Resource Over TimeThe Tricky Part is Finding the Sweet Spot of TooMany and Too Few Customers
  • 13. To Run a Product-Oriented Business…You Must:1. Create Some Sort of Tangible Item that People Want2. Product that Item as Inexpensively as Possible While Maintaining an Acceptable Level of Quality3. Sell as Many Units as Possible for as High a Price as the Market will Bear4. Keep Enough Inventory of Finished Product Available to Fulfill Orders as they Come in
  • 14. To Create a Successful SubscriptionYour Business Must:1. Provide Significant Value to Each Subscriber On a Regular Basis2. Build a Subscriber Base and Continually Attract New Subscribers to Compensate for Attrition3. Bill Customers On a Recurring Basis4. Retain Each Subscriber as Long as Possible
  • 15. To Provide Value as a Reseller…You Must:1. Purchase a Product as Inexpensively as Possible, Usually in Bulk2. Keep the Product in Good Condition Until Sale3. Find Potential Purchasers of the Product as Quickly as Possible to Keep Inventory Costs Low4. Sell the Product for as High a Mark-up as Possible, Preferably a Multiple of the Purchase Price
  • 16. In Order to Provide Value Via a Lease…You Must:1. Acquire an Asset People Want to Use2. Lease the Asset to a Paying Customer on Favorable Terms3. Protect Yourself from Unexpected or Adverse Events, Including the Loss or Damage of the Leased Asset
  • 17. To Provide Value Via Agency…You Must:1. Find a Seller Who Has a Valuable Asset2. Establish Contact & Trust w/ Potential Buyers of that Asset3. Negotiate Until an Agreement is Reached on the Terms of Sale4. Collect the Agreed-Upon Fee or Commission from the Seller
  • 18. To Provide Value Via Audience Aggregation…You Must:1. Identify a Group of People w/ Common Characteristics/Interests2. Create and Maintain Some Way of Consistently Attracting that Group’s Attention3. Find Third Parties who are Interested in Buying the Attention of that Audience4. Sell Access to that Audience w/o Alienating the Audience Itself
  • 19. To Provide Value via Loan…You Must:1. Have Some Amount of Money to Lend2. Find People Who Want to Borrow That Money3. Set an Interest Rate that Compensates you Adequately for the Loan4. Estimate and Protect Against the Possibility that the Loan Won’t Be Repaid
  • 20. To Provide Value Via Options…You Must:1. Identify Some Action People Might Want to Take in the Future2. Offer Potential Buyers the Right To Take That Action Before a Specified Deadline3. Convince Potential Buyers that the Option is Worth the Asking Price4. Enforce the Specified Deadline on Taking ActionExamples include Concert Tickets, Coupons, andLicensing Rights.
  • 21. To Provide Value Via Insurance…You Must:1. Create a Binding Legal Agreement That Transfers the Risk of a Specific Bad Thing (a “Loss”) Happening form the Policy Holder to You2. Estimate the Risk of that Bad Thing Actually Happening, Using Available Data3. Collect the Agreed-Upon Series of Payments (Called “Premiums”) Over Time4. Pay Out Legitimate Claims Upon the Policy
  • 22. To Provide Value Via Capital…You Must:1. Have a Pool of Resources Available to Invest2. Find a Promising Business in which You’d Be Willing to Invest3. Estimate How much that Business is Currently Worth, How much it may be worth in the Future, and the Probability that the Business will Go Under , which Would Result in the loss of Your Capital4. Negotiate the Amount of Ownership You’d Receive in Exchange for the Amount of Capital You’re Investing
  • 23. Combinations• Travel Sites like Orbitz – Airline Tickets (Products), Trip Cancellation Insurance, and Display Advertising (Audience Aggregation)• Movie Theaters – Movie Showings (Shared Resource) with Tickets (Option) and Concession Sales (Products)
  • 24. 1st Part of The Personal MBAClick On the Link Below to Get It on AmazonShare This Info w/ Someone Who Needs It Tweet @MainTakeAway Share a Comment Below