Several millionaire gurus advised that in sales or entrepreneurship, do something for free as knowledge, seek payment for execution

Looking forward to the future of business

Some successful billionaires, sales gurus  like Dan Martell have spoused doing something for free. And worth mentioning are freemium business model as exemplefied by Wiki, Linked in, Google, You Tube and many more.   Ordinary products are free, but premium models are not.

Martell says that knowledge, skills can be shared for free, but execution, like workshop, mentoring, seminars are not.   You attract followers when you give something for free.  

What you sow you reap.   If you have sowed so much prosperity and wealth to other people, to the govt and the community, there is no other consequence except progress in due time.  

And besides that is called for in the scriptures.   

Find your gift and share with others.      

This post has been engaged in many things that are free:

    1.  Teaching at a GSB at a pittance of what I would earn in business

    2.  Mentoring in a group espousing entrepreneurship

    3.  Publishing countelss Entrepreneruship ppt at Linked in

    4.  Advising other business men in their deals

    5.  Sharing nuggeets of wisdom in ordinary business conversation

What hath grab and UBER done to the car sales - why buy a car when you can grab

Looking forward to the future of business

Rizal Philipppines
December 2019

Plenty.  It means lower sales.  Now consumers see less desire to buy  new cars.  They can get their rides,  new cars pa, safe and convenient via apps.  With stringent rules on parking areas, garage before you can buy, strict anti no parking laws, one is less likely to buy a new car.  Compound that with the traffic, and increasing cost of ownership:   service cost at casa, insurance, accidents, road rage abusive jeepney drivers, traffic enforcers,.  Why buy a car when you can Grab?

Toyota has partnered with Grab at least to get a share of the market for initial car sales

This business model is a viable model as:

1.  The buyer earns much, Grab just gets a commission only
2.  The driver behavior is controlled
3.  There is less chance of abusive drivers (the drivers will not earn if they misbehave)
4.   Less expense on the part of the operator since the going around is minimized;  there are always ready users.
5.  The model is self liquidating;  the revenue of owner is enough to pay for monthly amortization of the unit that is under installment (that is why the FX and UV transport became popular)

Catching up with new business models, they will make current ones obsolete

Ateneo Professor on Entrepreneurship

Rizal Philippines
July 12, 2019

Several years ago while teaching entrepreneurship,  I had a topic entitled BMI.  Business model innovation.   Indeed while others work hard on product development or marketing,  but used on an old business model will not work, if competitors are riding a new model...  The business model has to be innovated and even changed....

Some examples of has been trying too hard:

1.  A softdrink company having more adspend although the PTM and needs and wants of customers (and thus the MVP) have changed from need to be refreshed to one of health and nutrition.  Other drinks have come out and have prospered. (Others suggested that the firm market their drink as a household cleaner)

2.   A computer company which has been bought to be private by the founder will not longer be healthy (as was done by a large computer company) which sold its compter company to a Chinese company.   His old business model will not longer win vs the mobile and smart phones.  People hate the heavy lap tops.  People prefer the light mobile device which does everything for them:   time keeping, calendar, alarm, watch, text call, and web access:  email, you tube, etc.    And they are cheaper....  The computer companies:  HP, Dell, will only be fraction of what they used to be.... The world will be populated by smart phones and the computer lap tops will remain with a few hundred million offices and schools...

3.  Gasoline cars will give way to:

     1.  Hybrids
     2. Bicycles
     3. Uber and grab... Why buy a car when you can grab this.?

4.  I was too late to learn the shift in what sells and what does not sell among watches.   I used to be enamored with automatic mechanical watches.  While I invested only in replicas, they cost me a lot of money.  And then I reflected on functionality of watches. 

What is the function of the watch? 1.  To tell accurate time.... and 2.  as jewelry...

     1. To tell accurate time, you need quartz watches which will set you back $20 to $1,000.  which
          accurate between 15 to 20 seconds per month....

     2.  The more accurate ones are so called atomic watches, which are linked to atomic clocks by
          radio control  (to 6 sites around the world) GPS (which drains the battery) and /or blue tooth
          which are connected to cellphones which are linked to atomic watches.  Which makes the
          watches which can cost you up to $2,000 each nothing more than electronic display board of
          the celestial satellites, or your cp.

     3. Which is the better alternative - the smartwatches or wearable which does these things:

          1.  telling time, alarm
          2.  support phone for exercise (up to 21 exercises from cycling, yoga, walking etc)
          3.  pedometer
          4.  gps
          5.  multiple watch faces;
          6.  wifi connectivity for cp calls and texts

         This new product/MVP spells troubles for:

          1. Quartz and mechanical watches (no wonder their prices are dropping and they sell for as low
              as 70% discount)

          2.  Smart phones.  Since some of these watches can be loaded with SIM, have speakers and                       can  access apps, these watches can render the smartphones obsolete.  (since the                                  smartwatches are doing these) cp manufacturers must hedge their bets with the wearables.
              Some predicted that wearables will be nothing in the future.  They are wrong.

   4.  Will brick and mortar malls survive with all the traffic and all the expenses incurred by the
         tenants and the lessor.  With electronics, fast and reliable couriers, you can have goods deliver-
         ed to your homes paid with credit card, fast, can return those you dont need, first hand or  pre
         used.... No traffic, no accidents, no pollution.   Mas mura producto kasi walang mayors permit
         walang rental, (vat?)  Iyan ang huhulihin ng BIR ngayon....

        Mas mura, mas mabilis.... Yong mahirap bilhin na search mo.... From the master producer -
        China
           

New business models being created....by new marketing platforms

Ateneo Professor on Entrepreneurship



July 12, 2019.

I buy from a website peddling all kinds of stuff:  bike jersey, bike parts, and lately to buy today, smartwatch.  But looking at the products they sell, it is a supermarket at the net:  they sell toys, clothing, infant formula, vitamins and even FMCG sells through them... 

They are outselling the old sites like OLX because of gimmicks, events, discounts, games and superior graphics.... And they cater to smart phones.  More and more people are buying and selling through these two popular sites with their deep discounts and promos (although they have chinks in the armor too)

And the malls too.   With their cheap prices and fast delivery, you are not in if you do not buy from them.  Their business have come of age because of internet, because of smartphones, apps, and courier services...

We were contemplating if our products and services can be sold through their platform...

If we will not keep abreast of the latest, then we can be dead...

Was Ray Kroc a real founder, an Entrepreneur?

Ateneo Professor on Entrepreneurship

Ray Kroc biography

Last Saturday, this post had the opportunity to watch the movie The Founder which was about the life story of Ray Kroc, the legendary founder of McDonald's

He was  considered a founder but did not actually start anything. He was a milkshake salesman who saw the speedy and efficient operations of MacDonald operated by the brothers with same surname:  Dick and Mac.   But we attributed him to be a founder because:

1. He got the burger chain across USA by franchising.  But he did not earn money on this idea.  He mortgaged his house and got measly $100 per establishment because the  franchise fee was only 1%

2. Somebody a CPA or finance man Harry Sonneborn, who later became the first President who overheard him at the bank suggested that he was in the wrong business. The real business is in real estate:   ie that he buys the land finance the building where the McDo would rise.  and leases this to the franchisee. On day one even while the business has not started, he  earns

In No. 1, he earns only when the store opens.   In this new business model, his venture becomes bankable because he will have real properties to mortgage to the bank to finance his expansion, which when acquired piles up his landholdings which increases his networth. The business is a real estate play.

3. The McDonald brothers did not progress because:

      1.  They were afraid to take risks.  By force of habit, and complacency, they wanted to conduct business the way it was, until now and in the future.  They did not want to take risk.  While Ray wanted to use the powdered milk to save on costs, the McDo brothers disagreed.

     2.  Ray Kroc took the initiative to change the business model eventually buying out the  brothers

4.  Ray Kroc succeeded and eventually became a billionaire (in $) because:

     1.  He had a vision;  he saw great potential in the McDo burger;  He talked about the Golden Arches -
          the golden opportunity.

     2.  He  took risks and  even mortgaging his house to finance his franchise dream

    3.   He had an eye for great talents:   the bible salesman, the other guys he meet at various meeting

    4.  He  was willing to listen to new ideas and was humble enough to listen to advice

   5. H e understood the value of brand.  "You know the secret of McDonald?"  he asked one of the McDo
       brothers after he  paid them say $3M-  and the latter said no.  "You do not know?  The name.  The first
       time he visited the store, he knew it would be a success because of the name.  It was very American.

       Kroc is not.   It sounds like European or Czech  (He was Czech native)

       He even told them of their backwardness.

  6.  He  took the lead and quarreled with the  McDo brothers even cutting short a telephone conversation.

      He was not afraid to let the other guy know what he wanted.  and say No.  One of the secrets of success

One last thing:  He  believed in the  value persistence and  determination

He maintained close relationship with Walt Disney and Ernest Hemingway.   He died at age of 81 of heart attack.  They had 7,500 stores valued at $8 billion.   and was worth $500 million.

They have 37,000 stores in 100 countries worldwide

Lessons learned:
1.  The quotes we learn, the  self improvement lessons we take are more important than PHP.   Armed with only Calvin Coolidge admonition on determination, Kroc put up  the McDo empire.

2. Practice leadership which should come from #1.

3.  Surround yourself with skilled and professional staff;

4.  Know what you want and have a vision.

5.  Learn salesmanship and be a great one.

6.  Innovate and learn. Continue learning

Special Report_Business Model_Lei Pichay

Hi Prof Jorge,

Please see link for my Special Report: Business Model: http://www.slideshare.net/lrp315/business-model-14752254

Thank you.

Best Regards,

Lei Pichay

Business model from lrp315

Having ideas is not enough, having a business model is

Ateneo Professor on Entrepreneurship

From Inc

Sometimes you think that having an idea, a concept is enough.  It is not.  Having the business model is.

The investor is not interested in your idea; but how to make money from the venture.  You have to convince the investor:

l.  That you can put together the team, the resources and activities, and the links to create the business;

2.  that you can have the manageable executions to serve the customers and deliver the mvp; and that you understand the process and the product (this was the comment/weakness of the past Entrep batch business plan)

3.  the amount of costs and revenues;  thus it has to be clear in the business model including the gross profit or the value added.

Know your business model, not just the idea to get your investor

Did you write a business plan for your business Arch Bong?

Ateneo Professor on Entrepreneurship

Anton Pantoja asked our guest entrepreneur if he wrote a business plan?  Arch Bong curtly answered no.  He said it is common sense:  you know whether you will make money or not.

I hope Anton is not making reference to the course requirement of 30 points why you need to make a business plan.

That is why:

l.  I have been pounding on the business model (and we even had the BMI special report by Bel Tamayo)  It is a thumbnail of the business (that is why the financial:  revenue vs cost side) has to be SMART!.

2.  There is the effectutation entrepreneurship special report by no less than Anton.  These guys, the hundreds of thousands micro entrepreneurs there did not write a business plan.  Look.  They remain micro.

When you borrow money, when you want to expand, when you meet VC, you need a BP.

If you must graduate with an MBA, you must know how to make a business plan.  

New Business Model for a Tourist Guide Company

Our generation needs an ENTREPRENEURIAL REVOLUTION.

As I stated earlier, I went on a tour with the family.  We went to a popular tourist destination.  We did not exactly get a bargain for the tour;  but we were did in by the cheap promo plane fare by Cebu Pacific

Traditionally, the travel guide/agency company make money on the fee they charge for the tour, plus probably commissions on the plane fare etc.  However, this travel guide operator in the destination had new revenue sources:

l.  Foreign exchange.  Their rates were higher by say 0.30 compared to  the airport fx exchange rate;  but slightly lower than the bank rate (which charges a fee for all foreign currency transaction)  Now travel guide operator would  take away business from banks and money changer?

2.  Bottled mineral water sale.  I suppose eventually they would venture into snack sale. Bottled mineral water is a precious commodity here;  the bottled water price could be exorbitant at tourist spots and other destinations.  They charge $2 less than 7ll outlets.

3.  Well this is an extension of their old revenue model.  The city tour took us to factory outlets that are not well known. They are probably getting better commissions from these outlets.

But look at the above example:   a travel guide operator understanding its business model and innovating on it;  adding value to the travelers and to their bottom line.

That is entrepreneurship;  that is innovation.

That is why this island nation is unbeatable and they are tops world wide always.

A Sexy Way of Understanding Business Model from Slideshare

Our generation needs a revolution - an ENTREPRENEURIAL REVOLUTION. Join

Here is a new and sexy way for understanding the business model innovation. This is the new buzzword for business. Business model innovation is gradually replacing strategy as the leading business buzzword in 20l0.

Web business models, Lean Startup and the Missionary Position

View more presentations from Salim Virani

Comments on Business Plan Writng

Please take note that Business Plan writing constitute a large portion of the entrep studes grades.  Much honor is at stake because all BP become entries to the Larry Farrell's Business Plan writing competion.

Some suggestions:
l.  Please read Dr. Ed Morato's book on Trilogy of Entrepreneurship.  Better still, buy the book please.
2.  Please read very well my write up on the syllabus how to write a business plan.
3.  Please view my ppt. on business plan writing at slideshare.  Go to www. slideshare.profjorge-entrep

Other comments:
l.  Complete the business concept/model/offering very well.  We spent a lot of time on business model.  Your BM is your business dashboard. On the offering, it summarizes the financial results like ROI which should convince your financier or investor put money in you business/plan

2.  Complete the VMOKRAPI.  Read my notes on the subject matter, especially the SMART objectives, 4 groups of objectives., the KRA, and the PI

3.  Your business concept and vision should be compelling.

4   Compelling means your business should be tomorrow's headline.  It should be unique and mesmerizing

5.   Complete sales estimate from your opportunity seeking, screening, and micromarket analysis/

6.  Input your knowledge and your experience with group activities on product concept and design re:  nu l2 and creative exercises.

7.  EDS and financial must be well written, complete.