March 24, 2006

Am I Being too Cynical?

Business Models

0  comments

Old style company New style company
  1. They make something people want to buy.
  2. They can find enough of those people, and sell to them at a cost that allows them to make a profit.
  3. They do it again and again.
  4. As the desire for what they sell changes, the company adapts to those changes and remain profitable. (Some have a problem here.)
  1. They make something that is cool or buzz-worthy – usually web-based.
  2. They convince Venture Capitalists to give them money to ramp it up.
  3. They go public (old bubble) or sell to Google (web 2.0).
  4. Optional: New owners use it to make something people want to buy and find enough of those people to sell to. (Some have a problem here.)

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About the author 

John Seiffer

I've been an entrepreneur since we were called Business Owners. I opened my first company in 1979 - the only one that ever lost money. In 1994 I started coaching other business owners dealing with the struggles of growth. In 1998 I became the third President of the International Coach Federation. (That's a story for another day.) Coaching just the owners wasn't enough for some. So I began to do organizational coaching as well. Now I don't have time to work with as many companies as I'd like, so I've packaged my techniques into this Virtual CEO Boot Camp.

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