Starting a business is a one-way road, and no matter how long it has been, I still remember it. Long deliberation before starting a business helps to achieve success. Capital also includes industry experience and networking resources, etc. Seven migrant workers lifted a car to save a man trapped under a car. The most important networking resources are partner resources and customer resources.
IV. Income Model
Positioning is basically about trade-offs. Entrepreneurs often have limited resources and need to remind themselves "not to try to do everything" and not be too "greedy." The purpose of designing and optimizing the income model is to obtain as much cash flow as possible while expanding their influence, achieving a virtuous cycle of revenue growth.
Similarly cultivating a piece of land, whether this land is in the desert or on a mine, whether planting ginseng or radishes, the results will naturally differ. Choosing a direction involves looking at whether what you're doing has a future, whether it aligns with societal development trends and national guidance requirements, whether the market is growing rapidly or quietly shrinking... Once the direction and positioning are determined, along with capital matching the goals, you still need a good business model. The key to conceptualizing a business model is, of course, what kind of product or service you provide to solve user problems. The subsequent question is, how do you design the most valuable, simplest, and easiest-to-implement business process to reduce the cost of your services (including R&D costs, production costs, channel costs, service costs), enhancing the effectiveness of these products and services.
Simply put, capital is the core resources required for the survival or development of an enterprise, as well as the ability to continuously maintain these resources. If you always have capital, you can continue playing. When you run out of capital, you face danger.
I. Direction and Positioning
The ultimate purpose of pondering the above four questions is to build a bridge that converts internal resources into external demands, achieving goals with less input, minimal risk, quick results, substantial and lasting income, ensuring the company has a continuous free cash flow, enhancing the investment value and social value of the enterprise.
The same resource can provide different products and services, adopting different business processes. Different choices lead to vastly different results. A good business model can fully utilize existing product resources, channel resources, marketing resources, and service resources, balancing the interests of more people, maximizing the value of resources, and optimizing the business process.
III. Business Model
II. Capital (Funding and Resources)
Capital, of course, is primarily money. When investing capital, don't engage in businesses where you can afford to win but not to lose. Achieving success in one go isn't impossible, but it's often the "exception" in successful cases. Even if things start off well, if there's no follow-up investment capability, it's still possible to regret just before dawn.
You can focus on breaking through from a "point," implementing "micro-innovations." Market opportunities are shared; when you discover an opportunity, others will too, and what you can do, others may also be able to do. Finding a familiar entry point with unique advantages to enter the market and respond to competition gives hope for survival.
Income doesn't necessarily have to come directly from users, nor does it have to come from only one source. For example, providing paper media services can mainly involve charging direct users (such as high-circulation abstract newspapers), offering free services to direct users but charging third-party clients or sponsors who need these direct users (such as direct advertising magazines), or charging both (such as urban newspapers).