Page 28 - The Bootstrapper Bible

ChangeThis POSITIONING. How do the ultimate users position the product in their minds? MARKETING. How do consumers find out about it? BARRIER TO ENTRY. How will you survive when competitors arrive? SCALABILITY. How do you make it bigger? GET OFF ON THE RIGHT FOOT BY STARTING THE RIGHT BUSINESS Understanding the mechanics of a business model is essential before you start your business. Business models should have the following five attributes: 1 THEY SHOULD BE PROFITABLE. Youʼd be surprised at how often people start businesses that lose money on every product and then try to make it up in volume! That lemonade stand you ran when you were seven was a great lesson—you need to make money to stay in business. The only thing is that when youʼre seven, your mom gives you the lemons for free. Almost no business is profitable on the very first day. The baker has to buy ovens, pay the rent, and purchase ingredients. The consultant needs business cards and brochures. The question is: How long before profitability? Write down a target date. If you go way past it, figure out how to fix the problem or quit. Staying in a losing business because youʼve already lost a lot of money is a bad business strategy. Learn how to detect the factors that change a business from profitable to unprofitable. If youʼre contracted to deliver goods at a fixed | iss. 6.01 | i | U | X | + | Seth Godin is the author of Unleashing the Ideavirus. BUY it here. h 28/103 f