I recently read an incredible book by Josh Kaufmann called The Personal MBA.
Really solid book – and I do highly recommend reading it. I encourage you to visit Amazon.com and pick it up. After I read it, I pretty much have personally recommended that everyone in our company read it. Here is a pic of my copy of the book, with my brother who is now reading it.
In the book he discusses how business is not really a science… it is about creating a product or service so good that people will pay for it.
I blogged on Friday about how a business is a repeatable process that makes money. Well, there is a little more to it than that.
You see, there are many different ways to create value in your business. I will briefly list them below.
1. Product. Create a single tangible item or entity, then sell and deliver it for more than what it cost to make.
Example: cars, software, donuts…
2. Service. Provide help or assistance, then charge a fee for the benefits rendered.
Example: A Barbershop
3. Shared resource. Create a durable asset that can be used by many people, then charge a fee for access.
Example: A gym.
4. Subscription. Offer a benefit on an ongoing basis, and charge a recurring fee.
Example: Cable television.
5. Resale. Acquire an asset from a wholesaler, then sell that asset to a retail buyer at a higher price.
Example: Walmart
6. Lease. Acquire an asset, then allow another person to use that asset for a predefined amount of time in exchange for a fee.
7. Agency. Market and sell an asset or service you do not own on behalf of a third party, then collect a percentage of the transaction
price as a fee.
Example: Literary agents, music agents…
8. Audience Aggregation. Get the attention of a group of people with certain characteristics, then sell access in the form of advertising to another business looking to reach that audience.
Example: magazine and advertising supported websites…
9. 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 rate.
10. Option. Offer the ability to take a predefined action for a fixed period of time in exchange for a fee.
11. 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
actually happens.
12. Capital. Purchase an ownership stake in a business, then collect a corresponding portion of the profit as a one-time
payout or ongoing dividend.
Those 12 areas pretty much cover the basis of all types of businesses.
What is the common characteristic that each of the above have?
They earn revenue.
This leads me back to the question I posed on Friday…
Who will be paying me?
What will they by paying me for?
How will I accept money?
Registering a business with your state or province and setting up a merchant account is one of the first things you want to do when starting a business.
If you are finally ready to take the next step in your business and partner up with a payment processing company, now is a great time to sign up with PowerPay:
http://hcdesk.com/powerpay.html
And if you already have a merchant account, this is a great time to see if you can save time, hassles, and money by switching payment processors.
PowerPay really understands what you need to be successful.
They serve large and small businesses with specialized VIP service like you have never experienced in this industry.
From day one, you will be assigned a dedicated one-on-one relationship manager.
That means you will not be subjected to sales agents who are not accountable, endless phone queues connecting you to someone who doesn’t understand your business, or worse – trying to get help from someone who is indifferent.
PowerPay understands the industry and we give our full endorsement to them…
http://hcdesk.com/powerpay.html
Time is money and yours as a business owner is priceless.
Trust me when I say this; these guys provide the most powerful, hassle-free merchant account in the industry…
So visit PowerPay today to find out more or call their experts at 888.639.9670.
They will take great care of you, I promise.
Make moves today,
Marc Horne
HC Consulting Group
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