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CHAPTER 8 MASTERING YOUR MONEY
Table of the Four Business Quadrants
Product Product B to B Product B to C
(+) Examples: Examples:
Highly scalable Office equipment suppliers Restaurants
Low variable cost Professional software vendors Health food products
Consistent quality Office computer suppliers Consumer electronics
Contract manufacturing Retail Boutique
(-)
Higher startup costs
Inventory costs
Service Service B to B Service B to C
(+) Examples: Examples:
Lower startup costs Web Design company Hairstyling
No inventory Recruitment/ HR agency Learning centre
Advertising agency Spa and massage
(-) Public Relations firm
Less scalable Corporate training
Higher variable costs
More difficult to
maintain quality
Business to Business Business to Consumer
(+) (+)
Less advertising & promo costs Payment upfront in cash
Personal selling & networking No bad debts
Instant sales
(-) (-)
Accounts payable 30-60 days Advertising and promo costs
Provision for bad debts Retail or office space is important
There Has Never Been An Easier Time to Start a
Business than Today!
The good news is that it is much cheaper to start a business
today than any other period in history. In the industrial age
of the past, you needed lots of capital to buy raw materials,
SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES 231
