Virtual Office

Business Modeling 101

Two basic rules of business:

1) clearly define their clients
2) Go back of these aggressive

I've always been inspired by the small business and now I'm in business to help them.

A bit of me – I've worked for some most recognized organizations in the world. Some of these include Citigroup (AVP), Freddie Mac (Trader), GE Medical Systems (analyst), JPMorgan (analyst), SunTrust Humphrey Robertson (Associate), Harvard University (Visiting Fellow) and Intel Corporation (Mr. Analyst). Most of these organizations have similar practices in concerning financial transactions, the difference is even more evident in the dominant business model.

What exactly is a business model? These are some definitions on the Web:

• The plan of a company uses to generate income.
  www.netc.org / Appendices openoptions / / glossary.html
• The combination of factors that describe the activity, including the company will market, the perceived value delivered to customers, which determines the profitability per unit sales, and maintenance factors of the company to prosper in the long term.
  www.milestonegrowth.com / financing / glossary.html
• A model of an organization or commercial.
  www.bethesda.med.navy.mil / patient / HIPAA / Glossary.asp

In terms of financial and investor model is the model business Financial. You can also define precisely the gross profit (revenue – cost of goods sold). It's how I learned to define it as an investment banking analyst. Comparing the business models are likely to go directly to their bankers and financial model gross margin projection. A society with a high gross margin (gross margin / turnover) a model of "good business" and the company in a sector with the highest gross margin is said to be the best. Large companies are perceived as business models because they are more able to benefit from economies of scale. Is there a way to break this perception with their clients?

It's easy to start thinking that is condemned as a small business, the cards are inherently stacked against you and absolutely no way to compete with their larger competitors and well established. That's what I think, but it is only correct if you use the same business model. Women, Veterans, minorities and disabled organizations property are particularly vulnerable to "the inclination of the small business." The challenge is finding your advantage.

Regardless of size, their business model must be credible and define its advantage. As contract administrator at Harvard, one of the hardest parts of my job was to convince small business partners to try something new. Some of them only had to change some minor areas to win market share in the Community. A small company has taken my advice and got a contract with a national network through our partnership. If you try to compete with large organizations that use their "model business "is not to maximize their options. Listen to what your customers need, can help define your advantage.

There are many types of business models. Some of these include:

i) Production (Direct Model) – a direct model allows the manufacturer to speak directly to the consumer as a license or lease.
ii) Sales Model – Extension of the traditional broadcasting model. Search engines (portals) and ads (like Craigslist) required fees or user registration.

iii) Data Model – data on consumer behavior. Examples include services such as audience measurement Nielsen www.Alexa.com .

iv) Model Merchant – wholesale or retail of goods. Some examples are of brick and mortar stores with a Web interface or an exchange with the catalog Mail

v) The model of intermediation – Trade Market. Investment banks are the best example this.

vi) membership / Commission Blueprint – Similar to an advertising model, but it feeds on purchases and no traffic.

vii) Model Forum – Blog and community forum. The examples are Twitter and blogging sites.

viii) The subscription model – users must pay a regular fee for service. Examples include Netflix and Internet services.

ix) A la carte model – Pay-per-view, a la carte model. based on measurement or subscriptions.

According to a study by Peter Wiele, et al, of the Sloan School of Management at MIT, the law, some business models over others? A study 1000 of the largest U.S. companies, some business models are doing better than others. The study goes on to say that "business models are a better indicator … financial performance and industry classifications some business models, indeed, better than others. More specifically, selling the right to use assets is more cost effective and valued by the market for sale of property assets. http://ccs.mit.edu/papers/pdf/wp226.pdf, [p. 2]

There are four models of adhesive labels basic as defined in the study: creator, distributor, Charter Broker [p.25]. Tags are fairly intuitive. Landlord and Broker both exist because the creator and distributor, are the products of the world of modeling of the company. These models succeed in the proper management of assets. Subsequently, both drivers and owners of income substantially higher operating and market capitalization as a creator or distributor business models [p.22]. The market has been affected more risks for these models, the same way, the reward is proportionately higher. As expected (or not) there were no significant differences between any of the four models ROIC (return on capital investment) [p. 24]. If a certain business model generated higher returns on investment, we'd all be using this model, theory. I recommend reading this document. (I'm trying to get their hands on the latest version)

In reality and at a time that customers prefer increasingly slow cooked dry, smaller companies have an advantage over big business – You have the gift of luxury and agility. Your organization is able to respond to changing demands more quickly. If you have not applied this business model for you, stop here and treat. If you have and we are always looking for ways to improve operations with its business model follow these steps.

1. Check and adjust its business model with its mission. Everyone in the organization must be directly related with increasing profitability. If not transfer them to a project. Everyone in your organization should consider "how to reduce costs and increase revenue while improving the quality (and still legal). "Their mission should include some measure of this principle.

2. Finding the optimum model. There are dozens of ways to increase their income to reduce costs. Finding the optimal model for their customer base is essential.

a. Create a financial model and play with the variables affect the best model. A good financial model will help you focus your attention on success rates. Instead of guessing what the focus areas or accident to the list, you know the three main areas of work to improve its margins.

b. Costs and control functions, simply operating in the virtual world today. In many cases, a site of $ 12 a month you can take the place of brick and mortar offices. What is the lesson here? If you are a small business using the Internet as a means of depriving large companies. If you're a large company, the use of the Internet as a way to create a segment of your organization to respond to changes in market demand more quickly. There is a reason why the recent performance academic competence, strategy and organization are almost completely dominated by research on the Internet that has revolutionized traditional business models.

3. Exercise stress test of your model. Make sure you know what are the implications of a decision are to make any change in policy. This is what the pattern is for. Most people think it's just a tool for investors But investors also want to see if you know how decisions affect cash flow in your organization andwill appreciate your ability to do so using the model Financial. Sensitivity analysis made important changes in the accounts within the model. A scenario analysis shows the effects of different scenarios in your business. I guess that investors really want to see?

4. Treat as a marketing asset. I think the market is so critical to your business should be part of their business model.

a. Most MBAs are taught that marketing is an operating expense, but for start-up marketing is an essential part of the income which could take several years to recover. If advertising costs or expenses to be capitalized? Well, personally I think the market should be capitalized.

b. What exactly does capitalization mean? This means items that big companies can be recorded on the assets resulting from depreciation rather that the total cost of current income cons. This means that the assets are charged (usually long-term or fixed assets) and liabilities are accredited. As expenditures are made for depreciation, liabilities are charged and credited to revenue as expenses. Instead of reducing gross margin calculations, fixed assets, increased costs and liabilities balance.

C. While the capitalized cost a bit more in charge of accounting there are also many advantages, some of these: 1) the least volatile gross profit, 2) increased capital investment, and 3) the potential tax benefits.

5. Do a little dance of Six Sigma – Identifying critical processes most of the 10 of its organization and draw from start to finish. I guarantee that the process is redundant, duplicate services, etc. In the manufacturing sector to pay hundreds of thousands of dollars to do so. It is also a necessary step in most quality initiatives of companies such as Six Sigma or Lean. The first helps reduce errors and costs latterhelpsinreducing redundant or useless (garbage). When you load the map of the supply chain of equipment I found Intel control problems and redundant processes. Intel is one of the largest control-oriented organizations I have worked. You will find areas for improvement in your organization if it does correctly.

. Recognize working capital 6. First, what is working capital?

a. The definition of capital work (current assets) – (current liabilities). A measure of liquid (ready) active in the organization. For this reason, analysts refer to it as "work." Financial theory is full of ideas on this subject. As central bankers can now use the surplus as a cushion "of protection" against a loan, investment banks may view it as an ineffective use of debt in the short term. Some even see a surplus as a sign of financial leadership poor. Ultimately, this will depend on the industry.

b. Implicit in the working capital considerations are the politics of recognition income. If you have pressed all the relations of its sales volume to consider developing easier ways for customers to pay. How can I help facilitate credit in case of need? Can I create a package? payment models are particularly important for serviceorganizations.

7. Closing the funding gap. You have to find ways to raise capital, if it does, and you should be sure to consider all projects with a fine tooth comb if you do. large and small, have difficulty obtaining funds when they really need. What do you say? Well, when it comes to business survival on the ability to "create" value is in the top of the list, no matter who you are. And this is not an easy thing to do, but here are some best practices ….

a. Large companies have been in "structured transactions" over a long period. If we can make loans to microcredit sector why not put investment products to banking start-ups? I return to this in a minute.

b. CPA vs. CFO vs. CEO (Editor Visionary / Chief Specialist Translation vs vs). Investors want you to be able to validate the hypothesis certainty.As with a CEO, you are probably much more to sell your product. Are you passionate about it, but do not worry about all the details. This is not serious. You're supposed to take that approach, but its chief financial officer must be different (and CPA is not their chief financial or administrative assistant). The CFO or a business consultant should be more concerned to provide for sale to investors. They reflect his energy and enthusiasm in a presentation to investors and bankers want to hear. His change of CPA (audit). His ability to literally build value to your product. Iscreated the credibility and value their business model will be based largely on the tool when talking to investors.

C. The details of the opportunity investment and find the best way to sell it. Write investors with a combo meal, make it easy for them to see a change. I have not met anyone with money to invest, Used to fire a reflective outinvestment.

d. Exchange houses to invest facilitated by a warranty. The average investor assumes that the trading on the NASDAQ is safe. In other words, the NASDAQ is a safe house in Paris. If you go to Las Vegas and has $ 50k, wants to know who you're dealing with some bookmakers confidence. The House can only assert their bet, they have nothing to do with his decision to gamble, or what you put your money. Is your insurance? You must create the sanctity scholarship and provide a return that exceeds 12%. This is it! Personally, I prefer to do business with someone I know and can reach more than someone who has a symbol I have known, I mean in private transactions and the opportunity to sell yourself to be more secure than Exchange bet.That is why investors love theprivate "Structured" deals that I mentioned in (a). More information on how these agreements are structured by seeking private equity bids. For example, you can develop 3 different stages of financing. Request for money for Phase 1, define their achievements and pay these people. Do the same for Phase 2 and 3. I'm writing an article on this subject now to check the website for updates!

8. Finally, think about your purchasing power. According to the five forces Porter's profitability is defined as a function of 5 different forces: 1) the threat of new entrants, 2) The bargaining power of suppliers, 3) the threat of substitute products or services, 4) the rivalry among existing competitors and 5) the bargaining power of buyers.http: / / hbr.harvardbusiness.org/2008/01/the-five- forces that shape the competitive strategy /
Call the manager's contract.

a. Ask if you can set up a meeting to talk about your product.

b. Tell them what they offer andshow its cost model. What can be done for them? You need to know what you stand for both the owner and competition.

C. Ask them if they actually make purchases or maintain contracts and whether it is a mandate from the community?

d. Show that you know the nuances difficult for the organization that wants to sell.

e. Also do not forget to mention buying the relevant words of fashion as sustainability, low energy, value added, CRM Analytics, for minorities, electronic shopping, community links, etc. Anything that can make the contract administrator is presented bright for the election of its product.

f. Even if you are a beginner, you will be better for this exchange. The more you do, the easier will become and the better you will.

About the Author

Biba Bryant, MBA
www.bibabryant.com

5411 mcgrath Blvd #leasing office North Bethesda, MD 20852