- 1) Make Meaning :
- Question 1) Isn’t It Interesting :
- Question 2) There A Better Way :
- Question 3) Therefore What :
- 2) Make Mantra :
- 3) Get Going :
- 4) Make Business Model :
- 1. Individual Solution Model :
- 2. Multi Component Model :
- 3. Market Leader Model :
- 4. Valuable Component :
- 5. Switch Board :
- 6. After Sale Model :
- 7. Freemium Model :
- 5) Weave Mat :
There is a lot of confusion among people out there while starting a business. the various question arises in their mind like what business they should do, how they should do etc.
And because of such confusion and questions max people quit before trying, they don’t do business. So, I am going to share important opinions from Guy Kawasaki book the Art of Start 2.0.
Which will end your confusing questions regarding the business. Questions regarding, thinking business idea of developing a business model.
As silicon valley says Guy has shared his life knowledge a CORE DUMP. That is everything that he learns from his business life experience. he has shared his whole life learning in this book.
He has gained from dealing with thousands of startups and wisdom gained from investing in them. Everything has been shared in this book.
The author says that some of the people who are into business for most of their life think that What if I had known about everything about the business before it would be much easier and better.
So, the author wants through this book that you don’t have to mingle onto this question in the future. The truth is that every business has two phases.
1st is a microscopic phase and 2nd is the telescopic phase. In the Microscopic phase, there is uncertainty on plans regarding business. And when people give focus on fundamentals, do research and analyze their market etc.
This means they focus on detail in this phase. On the other side in the telescopic phase, business is running smoothly. Business persons are dreaming big, dreaming about changing the world with their big visions.
Guy says when this phase comes business persons become an astronomer and think the sky is the limit. But when the microscopic phase begins they started to see problems everywhere.
But the fact is for the successful business these both phases are important. And to handle these both phases an entrepreneur has to focus on 5 things.
Because these 5 things will make them successful. They are make meaning, make Mantra, get going, business model and Weave Mat. So we are going to understand these 5 things.
1) Make Meaning :
When you have to use a computer in the old days. You have to be accessed to university or government departments. Because computers were only available to those places. Computers were not very normal earlier.
So, Steve Jobs and Wozniak thought of making a computer. Which even normal people can use, this way the world’s biggest company APPLE started.
When Dr. Spencer Silver was trying to prepare a Glue, at that time by mistake he made a substance which was weaker compare to glue but was sticky. This incident gave Birth to Post-it Note.
When Ray Kroc noticed that from an unknown place 8 mixers were ordered. He got curious to know about that place, hence he visited that Restaurant.
He loved that place so much that he thought why such a Restaurant is not everywhere. And that was the time Mc Donald started.
Dr. Ferdinand Porsche wasn’t getting his Dream car. So he himself started creating a dream car, this becomes the starting of Porsche company.
Most people think that to start a great business, people should know various complicated things should have a great idea and plans. But the truth is many great companies become great by answering simple questions.
For examples which I have shared above, every example had some simple question in it. And by asking such question even you can create simple business ideas. Like…
Question 1) Isn’t It Interesting :
Order of 8 mixers, Creation of other substance than glue were some interesting things and after finding answers for those questions Mc Donald and Post-it note idea pop up.
Question 2) There A Better Way :
Steve Jobs and Wozniak Created Computers and Porsche got the business idea of Creating Porsche dream cars because of these question, because of answering these questions.
Question 3) Therefore What :
In the future there will be a lot of usage of Computers, So what? Today’s computer is a hell lot of difficult to use, so what? So why don’t we create a software which makes computer usage easy.
And answers to these questions made Bill gates create his Microsoft first Program. Now two more Questions help to create Business ideas. You’ll get it from market leaders and people who are doing business. And the first question among those two is:
Question 1) Where Is The Leader Weak? :
For example, IBM Used to sell its product directly to companies hence Dell saw the opportunity and started selling directly to customers. Therefore created a place in the market.
Question 2) Where Are Customers Dissatisfied :
Earlier people used to go to DVD’S Stores to buy DVD’S. Which wasn’t liked by customers, Hence NETFLIX Started. And do remember the most important thing, you don’t have to do business just for money.
You need to do business also for adding value and meaning to other’s life. Because the fact is the company which only thinks about money never able to become big. Therefore take help of these questions and create an idea which adds value and meaning to others life.
2) Make Mantra :
Along with adding meaning to other’s life, your business should also have a Mantra. Mantra basically is a very powerful line, which reminds your mission of your business.
Like why you started this business? Why do you want to be successful in that business? Now understand and remember that Mantra and Tagline are two different things.
Mantra is for you and for your company employees whereas tagline is for customers. For example, Nike’s Tagline is JUST DO IT, whereas Nike’s Mantra is Authentic Athlete Performance.
Your Mantra will be like your Prayer, it will be like your magic sentence which will give you courage even in your difficult times, hence be serious about your mantras.
Let’s see some other examples:
1. Disney mantra is FUN FAMILY ENTERTAINMENT
2. Starbucks Mantra is Rewarding Everyday Moments
3. IBM Mantra is Think.
3) Get Going :
Most people just spend their time planning about the business they keep on thinking about different things. But the thing which is really very important and must is Action, and they fail to take action.
The author says that the biggest difficulty of starting a business is starting is taking the first step. So you just start taking action as quickly as you can.
If you are thinking of creating a Software product then sit and start coding. If you are thinking about a physical product then start creating a prototype. Now a few important points which help you to start they are :
1. Think Big:
When Jeff Bezos was thinking of starting Amazon. He didn’t start with 30 thousand or 3 lakhs book titles but he started with 30 lakh book titles. Similarly even you start by thinking something big this thing will motivate you.
2. Find Solumates :
Maximum times when any business becomes successful, one name gets more highlighted. Such as Steve Jobs name at the time of Apple, and Edison’s name at the time of light bulb invention. Richard Branson’s name at the Time of Virgin Airlines.
But the truth is all those successes had team efforts or had partners which helped them to face such huge success. Similarly even you should have a business partner or should have a team, which motivates you and you motivate them to achieve goals together.
3. Polarize :
Most people do the same mistake, they try to make everyone their customers. They wanted to target everybody, they wanted to impress everyone. But best is you should target specific groups of people, you should target your niche.
It’s ok if not everyone likes your product, you should focus on particular group who loves your product.
4) Make Business Model :
For a successful business, it is must have a good business model. Because this is the deciding factor of how you will earn from your business. To create a good business model you must ask yourself two important questions:
1) Who has your money? and 2) How will they give it to you?
Here first question clears your target audience and second question will talk about process and mechanism through which money will come to you by adding meaning and value to their lives.
Now I will share some business model examples which you can select on the basis of these questions:
1. Individual Solution Model :
Here you will solve individual’s particular problems by understanding it properly. This model can create a strong bond between you and customers.
Here you have to deal with every customer individually. For example: logo design or animation business.
2. Multi Component Model :
Coca-Cola business model has different price for different places means they will have different price for store, for companies, for multiplexes, Theaters etc. They charge different in different places.
3. Market Leader Model :
This model is good for businesses who bring new things in the market every time. They do innovation, take risks and as they bring new everything hence they charge premium price.
Apple has being the market leader from very long but now other companies too give competition.
4. Valuable Component :
Intel and Dolby business mainly don’t sell products directly to customers. They sell their products to different companies and business who uses their technology.
5. Switch Board :
Use of this model is good when you have lot of supply and demand and if you are market leader then this is best model.
For example, Walmart has a lot of demand therefore product creators directly go to them because of which Walmart easily negotiate from them, buy products cheaply and sell cheaply to customers.
6. After Sale Model :
This type business don’t get profit only by selling products but gets profit on selling ad too.
For example, profit by selling Printer and selling ink along with it also gives profit. Similar thing happens with coffee maker and soda maker.
7. Freemium Model :
This model is in Trend. This usually involves use of software, which company allows you to use for free but later if you want to remove ads or want more features or more software support then you have to pay.
For example, Evernote allow you to use their app for free but if you want more space then you have to pay $75 yearly.
5) Weave Mat :
MAT Stands for Milestone Assumptions and Tasks. The way construction site mat protect worker or people. So they don’t get hurt by stones.
Similarly, This MAT (Milestone Assumptions Tasks) will protect you from business failures.
You will find various things in a startup that you will think is necessary to finish. But you have to find some very important stuff out of those many and has to create some Milestones.
For example, the First milestone to prove your idea, second to complete design specifications, third to create a prototype, fourth to raise funds etc.
In assumptions you will test things on which you are assuming.
For example: What is the performance of product or services, what is the market size, what will be the profit, how much time will it take to do a sale etc.
If your assumptions are proper then good but if not then has to make changes have to think better ways to make your assumptions right.
These tasks will not be as important as milestones, but still, these tasks will be necessary for business.
For example, taking office for rent, doing business legal work, finding key vendors etc.
These are those 5 things that need to be focused by every entrepreneur. This knowledge I have shared from an amazing book The Art of Start 2.0. This is an amazing book for business lovers. If you want full knowledge then you can get it by buying this book from the below link.
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