Many readers told me about the failure of their venture capital investment.
Some people learn to do Taobao in their spare time. As a result, they don’t understand the business logic and operating tools.
Some people learn to write new media articles. As a result, they don’t understand the operation method, they don’t have the resources and the advertisers, and they end up being too tired to die. They haven’t made any money yet. They can only comfort themselves in cultivating their sentiments.
Some people learn to trade stocks. As a result, they don’t understand the stock knowledge and core contacts, and they are finally trapped.
There is always a consensus in the process from small white to elite. That is: not all money can be earned, and money that others can earn may not be earned.
The most important thing to make money is the market and model. As long as you identify the individual market and the replicable profit model, you can maximize the exponential growth of income.
How can I identify the market and model in which my individual is located? Today’s article talks about “personal business model.”
1. What is the business model?
The official statement of the business model is a way for an organization to maintain financial self-sufficiency.
There are two important concepts in the business model:
1. Who is the customer who paid for us?
2. What kind of work the customer needs us to do.
Before you want to make money, you must find out what your future service will pay for your own skills and what you need to do.
The failure of many companies and individuals is not a paying customer who has no clear long-term service, and what the customer needs us to do.
For enterprises, for example, many Internet companies in the early days have defined the profit model based on the advertising fees of users.
Many companies, regardless of the directional quality traffic that their future advertisers need, or the commercial channels that are fully realized (what channels provide you with stable advertisers), have begun investing a large number of new users to attract users. The result is that after the money is burned, the user has not increased significantly, and no advertisers have invested money. Eventually, the company’s cash flow broke and closed down.
Before listening to Wanwei Steel’s elite day class, it was said that many economists called the stage of the early barbaric growth of the Internet “enclosure movement”, which means that regardless of disregard, the first circle will be said. But Wan Weigang believes that the British enclosure movement and barbaric growth are two different things. Enclosure movement, all the wire used in the circle, the metal is its own property. After the enclave, the profit is determined by the original land, that is, how much land is circled, how much income is there, and the land itself is valuable. .
The early barbaric growth of the Internet was a circle of users, but the users did not pay for it. They did not have the same essential value as the land. Instead, they needed advertisers such as gold to give it value. So this is the reason for the failure of many Internet companies. The users whose assets are growing are not able to contribute too much value.
It’s not clear who is paying you, and it’s not clear what kind of service it really needs, and the days when it’s getting started.
Now more companies are more rational in their entrepreneurial business. They first find customers who can pay for them, have demand, and then design their own products and improve channels. For example, many beauty and fashion new media accounts are aimed at the needs of some high-end brand advertisers before they develop their own content strategies, and then expand the user base in a targeted manner so that the profit chain is stable and the returns are more controllable.
For the individual, many people want to make money, blindly imitate the way others make money, can speculate to make some small money, but it is not realistic to think so much in the long run.
One of my friends who are engaged in video creation has a deep understanding. He has made video promotional videos for some companies. This money is very hard and insecure. Because he can’t make money stably for a long time.
It is not certain how many people will go to him to make each month, and there are often cases of food breaks for several months.
So for the individual, the most important thing is to know who your paying customer is, what kind of service he needs from you, what kind of channels can be used to find such customers as much as possible, control and control independently, and supply themselves. client.
Therefore, for individuals, if they want to make money, they must not pursue to make quick money, but they must earn long-term stable money. This must be inseparable from the design of the whole process steps of making money, and it is also inseparable from the cooperation between people.
Comprehensive strength is always the most important.
Second, identify common mistakes in the business model process
1. What money you want to earn, both want toC and want toB
For the design of business models, whether for individuals or for businesses, it is best to focus on a customer relationship and profit model in the early stage. The determination of this relationship must be the one that maximizes profits.
Every company and individual has a different foundation, so not all business models on the cusp are suitable for your current stage. Looking for the current stage of operation is relatively light, the profit is more correct.
During the half year of my company’s work, I often saw a lot of people follow the trend. Some people will do book clubs immediately. Some people do micro-business and immediately do micro-business. They want to charge for the enterprise and want to charge the public, which is completely utilitarian. These patterns are all interfering with high-level decisions.
Because from the perspective of public relations, B-side enterprises and C-end enterprises still have very different communication strategies, let alone business practices.
Therefore, for enterprises and individuals, if they want to make money, don’t be too confused at first, don’t blindly imitate, try the lowest manpower and material cost, don’t put a lot of energy into unproven things before paying, pay attention Focus on the line that is best for you, the least, but the most profitable, and try to optimize the business on this line. Because such a business is your advantage.
If you are struggling to get results, it will take a lot of effort to make money, which means that it is not your advantage. It is a waste of time to do things that are not interested and not your own advantage.
2. Process design is complicated
The easiest way to think about a business model is what you are selling, who is buying it, how you can get more customers to buy or let a customer buy it multiple times.
Process design is too complicated and will interfere with your own thinking. So in the business model, the enterprise is good, the individual is good, as long as it can be clear.
3. Paranoid flow, not paying attention to the design of earning links.
I have seen a lot of paranoid people. In the design of the whole money making process, they will say: I will do the content well. Or I will do xx.
Such people do not have global and process thinking, and some are literary thinking, and it is easy to become a product with a very good field, but it cannot be sold. It is easy to be extreme and not to be born.
Whether it’s for business or for individuals, what you need is to determine your money making process.
Where are the customers, what can you provide, and what the channels are.
If you can’t do it in one way, you must find the right person to cooperate. It is very unfavorable to make money by relying on oneself and stubborn professionalism. If you have no money to earn, you will lose the passion to operate one thing. Many links will also rely on money to support costs.
Third, how to correctly determine your own personal business model?
The nine major components of the business model: customer groups, value services, channel access, customer relationships, revenue sources, core resources, key business, and important cooperation.
You can find a piece of paper and a pen and write it down.
Customer group: What kind of people can you help?
Value Service: What is the most valuable service product you can offer?
Channel Access: What channels can allow more target customers to know that you are selling such products?
Customer Relationship: Your relationship with your customers is to provide personalized, automated, single-transaction, subscription-based services? Do you tend to attract new users or dig more revenue from existing users?
Source of income: Why are your customers willing to pay? (one-time sale, rental fee, service fee, subscription fee, registration fee, agency fee)
Core resources: What is your core resource for doing this? (Human resources, physical assets, intellectual assets, financial assets)
Key business: What is the most critical business for you to do this? (product, sales, support)
Important cooperation: Who can work together to bring more profit as much as possible?
Cost structure: What is your cost of expenditure?
When designing a personal business model, we need to be as simple as possible.
The aim is to be able to clarify the services they provide, the key points of the customer’s pay, and how to make money on a large scale and free up their time. The best way to fight for the scalability of the interest model.
For example, after a software development, it can be sold at the lowest cost. For each additional customer, the service cost provided by the company is basically zero. It is an almost once-and-for-all model.
In contrast, consulting industry and personal service companies are basically not scalable. That is, if you only sell your own time, then increase your unit price as much as the customer can accept.
Upgradeable models, such as e-commerce, and knowledge-based payment, are relatively lighter models for personal services, consulting services, and educational services. It’s much better than a non-upgradeable business model.
The above is about the content of the individual business model.
I hope everyone will make more money in 2019.