The fastest way to grow your careerBuild trust and respect from your bossThe playbook:<ul><li>Identify big pain points for the team</li><li>Permisionlessly learn to solve it</li><li>Take it off their plate</li></ul>This is proof you can take projects end-to-end.<a href="https://elevatedpath.beehiiv.com/subscribe">The Art of Habits</a> (Its Free)

1. Become a Self-Starter

Executives get 1000+messages/day.Learn to communicate your project:<ul><li>Here was the goal</li><li>Here was my approach</li><li>Here is my traction</li><li>Here is my synthesis</li></ul>1-sentence eachMinimize follow-up questions﻿

2. Perfect the 4-Sentence Update

Storytelling is a learned skill.You can train yourself to become better<ul><li>Read great works</li><li>Record your own calls and review the tape</li><li>Work with a coach to improve your confidence</li></ul>Never fear pitching ideas again

3. Become a Great Storyteller

The knock against Generalists: they aren't TRULY great at1 thingCounterpoint: Generalists who stack skills are brutally effective.Stacking 3 related skills accelerates your greatnessIn the right role, "effective" generalists thriveExample:<ul><li>Copywriting </li><li>Offer creation</li><li>Graphic design</li><li>Monetization</li><li>Systems</li><li>Web design</li></ul>

4. Become an "Effective" Generalist

Actively build relationships with your coworkers.Ask them questions about their life.During 1:1'sOver SlackBuild up key points you can check in with:<ul><li>How's their new dog?</li><li>How was their trip?</li></ul>Small things compound

5. Intentional Memorization

Critical feedback is a giftBut it's easy to get emotional, and we're not taught how to deal with our emotionsInstead:<ul><li>Ask for the truth</li><li>Control your reactions</li><li>Listen, process, then respond</li></ul>Target North Star: A productive conversation

6. Learn to Receive Feedback

biggest work unlock:Understanding 3 hours of intense work > 12 hours of shallow work.shiny object syndrome is a constant challengeLearn to define your one big target and deliver daily, and you will outperform your peers.

7. Prioritize Singular Focus

Traditional company onboarding is broken<ul><li>Slow</li><li>Uninformative</li></ul>Instead:<ol><li> Lead your own process (ie. come up with ideas/ research)</li><li>Outreach with intent (ie. connect w/ key figures)</li><li> Assume you'lead meetings (10x your prep)</li></ol>

8. Rapidly Onboard Yourself

career

Career

personaldevelopment

Personal Development

corporateculture

Corporate Culture

business

Business

startup

Startups

8 soft skills to accelerate your career

Guy Raz emphasizes that successful entrepreneurs often start with a unique mindset characterized by curiosity, persistence, and a willingness to take risks. For example, Airbnb’s founders, Brian Chesky and Joe Gebbia, exhibited these traits when they started renting out air mattresses in their apartment to make ends meet, a small idea that eventually grew into a global hospitality giant.

Embrace the entrepreneurial mindset

Passion is a driving force for many entrepreneurs featured in the book. Raz highlights that pursuing something you are passionate about not only fuels your motivation but also helps you persevere through tough times. For instance, Blake Mycoskie’s passion for social entrepreneurship led him to start TOMS Shoes, where each purchase supports a charitable cause, showing how passion can transform a good idea into a great business.

Find your passion

Successful businesses often start by identifying a problem that needs solving. Raz shares stories like that of Sara Blakely, who created Spanx to address the lack of comfortable and effective shapewear for women. Her solution to this common problem revolutionized the industry and turned her into a billionaire.

Identify a problem and solve it

Many entrepreneurs featured in “How I Built This” started with small-scale experiments to validate their ideas. By testing their concepts on a smaller scale, they could refine their products and services before scaling up. This iterative process is exemplified by the founders of Instagram, who initially launched a check-in app called Burbn before pivoting to the photo-sharing platform we know today after observing user behavior.

Start small and validate your idea

Networking plays a vital role in the entrepreneurial journey. Raz explains how building and leveraging a strong network can open doors to opportunities, mentorship, and resources. For example, Howard Schultz’s network helped him secure the funding and advice needed to transform Starbucks from a local coffee bean retailer into a global coffeehouse chain.

Leverage your network

Failure is an inevitable part of entrepreneurship, but it’s also a valuable learning experience. Raz highlights the importance of viewing failures as opportunities to learn and grow. Spanx founder Sara Blakely, for instance, faced numerous rejections before finding success, showing how persistence and learning from setbacks can lead to eventual triumph.

Learn from failure

Flexibility and adaptability are key traits of successful entrepreneurs. Raz shares stories of businesses that had to pivot from their original ideas to find success. For example, Twitter started as a podcasting platform called Odeo before its founders pivoted to microblogging after realizing the potential of short status updates, highlighting the importance of being open to change.

Adapt and pivot

A strong brand identity can set your business apart from competitors. Raz emphasizes the importance of creating a brand that resonates with your target audience. For instance, the founders of Warby Parker created a brand that combined affordable, stylish eyewear with a social mission, building a loyal customer base and a distinctive brand image.

Build a strong brand

Providing an exceptional customer experience is a common theme among successful entrepreneurs. Raz explains that businesses that prioritize customer satisfaction often see higher retention rates and positive word-of-mouth referrals. For example, Zappos built its reputation on outstanding customer service, which became a cornerstone of its success and set it apart in the competitive e-commerce market.

Focus on customer experience

Storytelling is a powerful tool for connecting with customers and investors. Raz highlights how entrepreneurs can use their personal stories and the stories behind their products to create emotional connections. For instance, Burt’s Bees leveraged the story of co-founder Burt Shavitz, a beekeeper, to create a compelling brand narrative that resonated with consumers.

Utilise storytelling

Thorough market research is essential for understanding customer needs and industry trends. Raz emphasizes the importance of gathering insights about your target market to make informed decisions. For example, the founders of Stitch Fix used data and customer feedback to tailor their clothing subscription service, ensuring they met the specific preferences and needs of their clientele.

Understand your market

Innovation is at the heart of many successful businesses. Raz showcases entrepreneurs who constantly seek new ways to improve their products, services, and processes. For instance, Elon Musk’s companies, like Tesla and SpaceX, are built on a foundation of relentless innovation, pushing the boundaries of technology and industry standards.

Innovate continuously

A strong, resilient team is crucial for navigating the ups and downs of entrepreneurship. Raz explains that hiring people who share your vision and values can significantly impact your business’s success. For example, the early team at Google was chosen for their alignment with the company’s mission of organizing the world’s information, which contributed to its rapid growth and innovation.

Build a resilient team

Entrepreneurs often need to take calculated risks to achieve significant rewards. Raz discusses the importance of balancing risk-taking with careful planning. For instance, Richard Branson’s decision to launch Virgin Atlantic involved significant risk, but his thorough market research and bold marketing strategies helped him establish a successful airline.

Balance risk and reward

Funding is a critical aspect of building a business. Raz shares various strategies for securing funding, from bootstrapping to seeking venture capital. For example, Mailchimp started as a bootstrapped company, growing organically without outside investment, which allowed its founders to retain full control over their business and scale sustainably.

Secure funding strategically

Entrepreneurs who stay true to their values and mission often build more sustainable businesses. Raz highlights the importance of maintaining integrity and authenticity in your business practices. For instance, Patagonia’s commitment to environmental sustainability is woven into every aspect of their business, resonating deeply with their customer base and reinforcing their brand identity.

Stay true to your values

Technology can be a game-changer for businesses, providing new opportunities for innovation and growth. Raz discusses how entrepreneurs can leverage technology to streamline operations, enhance customer experiences, and scale their businesses more efficiently. For example, Shopify enabled countless small businesses to build online stores with ease, transforming the e-commerce landscape.

Leverage technology

Strategic planning is essential for managing business growth. Raz emphasizes the importance of setting clear goals, creating a roadmap, and regularly reviewing progress. For example, Airbnb’s strategic planning and expansion into new markets were crucial for its transformation from a niche service to a global hospitality platform.

Plan for growth

Entrepreneurship is a journey filled with highs and lows. Raz encourages entrepreneurs to embrace the entire process, including the challenges and setbacks. Enjoying the journey and learning from every experience can lead to personal and professional fulfillment. For instance, the founders of Instagram cherished their journey from a failed startup to a billion-dollar acquisition by Facebook, valuing the lessons learned along the way.

Embrace the journey

Many successful entrepreneurs give back to their communities and support causes they care about. Raz highlights the importance of social responsibility and the positive impact businesses can have on society. For instance, Ben & Jerry’s integrates social activism into their business model, using their platform to advocate for various social and environmental causes.

Give back to the community

Learn how the best entrepreneurs in the world built their business successfully snd how you can do the same. Explained exclusively here on the learning lab by talha.

WALL STREET JOURNAL #1 Bestselling Business Book Based on the highly acclaimed NPR podcast, How I Built This with Guy Raz, this book offers priceless insights and inspiration from the world’s top entrepreneurs on how to start, launch, and build a successful venture. Great ideas often come from a simple spark: A soccer player on the New Zealand national team notices all the unused wool his country produces and figures out a way to turn them into shoes (Allbirds). A former Buddhist monk decides the very best way to spread his mindfulness teachings is by launching an app (Headspace). A sandwich cart vendor finds a way to reuse leftover pita bread and turns it into a multimillion-dollar business (Stacy’s Pita Chips).   Award-winning interviewer and podcast creator Guy Raz has interviewed more than 350 highly successful entrepreneurs to uncover amazing true stories like these. In How I Built This, he shares tips for every entrepreneur’s journey: from the early days of formulating your idea, to raising money and recruiting employees, to fending off competitors, to finally paying yourself a real salary. This is a must-read for anyone who has ever dreamed of starting their own business or wondered how trailblazing entrepreneurs made their own dreams a reality.

marketingandsales

Marketing & Sales

entrepreneurship

Entrepreneurship

books

Books

Guy Raz

How I Built This

<ol><li class="ql-align-justify">Blind Luck</li><li class="ql-align-justify">Fortune Favors the Bold</li><li class="ql-align-justify">Luck Favors the Prepared Mind</li><li class="ql-align-justify">Luck Finds You Because of Your Reputation</li></ol>

Four Levels of Luck

<ul><li class="ql-align-justify">Luck that occurs without any effort or action on your part.</li><li class="ql-align-justify">This type of luck is unpredictable and not in your control.</li><li class="ql-align-justify">Example: being born healthy or winning a raffle.</li></ul>

Level-1: Blind Luck

<ul><li class="ql-align-justify">Increasing the odds of luck by taking action and being proactive.</li><li class="ql-align-justify">Engaging in various activities such as networking, conferences, etc. to create more opportunities for lucky encounters.</li><li class="ql-align-justify">Example: A person who volunteers at a community event might meet someone who later offers them a job or business opportunity.</li></ul>

Level-2: Fortune Favors the Bold

<ul><li class="ql-align-justify">Recognizing lucky opportunities due to years of preparation and experience.</li><li class="ql-align-justify">Having the ability to notice and seize lucky moments that others might overlook. In fields like investing or science and technology, years of preparation and gained experience that enhances the likelihood of identifying unique and beneficial opportunities.</li><li class="ql-align-justify">Example: Steve Jobs' extensive experience in technology and design allowed him to recognize the potential of integrating a phone, an iPod, and an internet communicator into one device.</li></ul>

Level-3: Luck Favors the Prepared Mind

<ul><li class="ql-align-justify">Your established reputation attracts fortunate circumstances.</li><li class="ql-align-justify">Being well-known in a specific field can lead to opportunities coming to you.</li><li class="ql-align-justify">Example: A lawyer known for her expertise in corporate law and her successful track record, is approached by a major corporation to handle a high-profile merger, without her having to seek out the opportunity.</li></ul>

Level-4: Luck Finds You Because of Your Reputation

<ol><li class="ql-align-justify">Mediocrity Risk</li><li class="ql-align-justify">Safety Risk</li><li class="ql-align-justify">Eyes Wide Shut Risk </li><li class="ql-align-justify">Market and Technical Risks</li></ol>

Four Flavors of Risk

<ul><li class="ql-align-justify">The danger of settling for average performance or outcomes, which can lead to stagnation and missed opportunities.</li><li class="ql-align-justify">Choosing paths that are "just okay" can waste valuable time and deprive individuals of achieving greatness.</li><li class="ql-align-justify">Example: Staying in the same mediocre job, even though you feel uninspired.</li><li class="ql-align-justify">Mitigation: Set goals that drive motivation, embrace challenges, and reevaluate progress periodically.</li></ul>

Flavor-1: Mediocrity Risk

<ul><li class="ql-align-justify">Risk of not taking enough risk - playing it too safe.</li><li class="ql-align-justify">Example: Investing in low-risk, low-return financial products due to fear of market volatility.</li><li class="ql-align-justify">Mitigation: Balance safety (being in your comfort zone) with calculated risks, for long-term personal and professional development.</li></ul>

Flavor-2: Safety Risk

<ul><li class="ql-align-justify">Ignoring or being unaware of significant threats or underlying risks, often due to complacency or lack of awareness.</li><li class="ql-align-justify">Example: Businesses that do not monitor market trends and consumer preferences may miss out on emerging opportunities.</li><li class="ql-align-justify">Mitigation: Periodically reassess your beliefs and assumptions, follow data-driven decision making, and encourage transparency in communication.</li></ul>

Flavor-3: Eyes Wide Shut Risk

<ul><li class="ql-align-justify">Uncertainties in market conditions and technological advancements.</li><li class="ql-align-justify">Example: A luxury car manufacturer faces declining sales during a global economic recession as consumers cut back on high-end purchases.</li><li class="ql-align-justify">Mitigation:  Spread risk through diversification, develop strategies that are flexible to adapt to market changes.</li></ul>

Flavor-4: Market and Technical Risks

Episode #380: Shaan Puri (@shaanvp) talks about the different kinds of luck, how to put yourself in a position to be lucky, and how to mitigate different kinds of risk.To submit your question and hear yourself on My First Million, go to MFMPod.com and click on the circle with the microphone in the lower right hand corner.-----Links:* Do you love MFM and want to see Sam and Shaan's smiling faces? Subscribe to our Youtube channel.* Want more insights like MFM? Check out Shaan's newsletter.-----Past guests on My First Million include Rob Dyrdek, Hasan Minhaj, Balaji Srinivasan, Jake Paul, Dr. Andrew Huberman, Gary Vee, Lance Armstrong, Sophia Amoruso, Ariel Helwani, Ramit Sethi, Stanley Druckenmiller, Peter Diamandis, Dharmesh Shah, Brian Halligan, Marc Lore, Jason Calacanis, Andrew Wilkinson, Julian Shapiro, Kat Cole, Codie Sanchez, Nader Al-Naji, Steph Smith, Trung Phan, Nick Huber, Anthony Pompliano, Ben Askren, Ramon Van Meer, Brianne Kimmel, Andrew Gazdecki, Scott Belsky, Moiz Ali, Dan Held, Elaine Zelby, Michael Saylor, Ryan Begelman, Jack Butcher, Reed Duchscher, Tai Lopez, Harley Finkelstein, Alexa von Tobel, Noah Kagan, Nick Bare, Greg Isenberg, James Altucher, Randy Hetrick and more.-----Additional episodes you might enjoy:• #224 Rob Dyrdek - How Tracking Every Second of His Life Took Rob Drydek from 0 to $405M in Exits• #209 Gary Vaynerchuk - Why NFTS Are the Future• #178 Balaji Srinivasan - Balaji on How to Fix the Media, Cloud Cities & Crypto* #169 - How One Man Started 5, Billion Dollar Companies, Dan Gilbert's Empire, & Talking With Warren Buffett• ​​​​#218 - Why You Should Take a Think Week Like Bill Gates• Dave Portnoy vs The World, Extreme Body Monitoring, The Future of Apparel Retail, "How Much is Anthony Pompliano Worth?", and More• How Mr Beast Got 100M Views in Less Than 4 Days, The $25M Chrome Extension, and More

strategy

Strategy

podcasts

Podcasts

leadershipandmanagement

Leadership & Management

Sam Parr and Shaan Puri brainstorm new business ideas based on trends & opportunities they see in the market. Sometimes they bring on famous guests to brainstorm with them.

My First Million

Framework Friday: The Secret to Being Lucky

Planning is the first step to success.✅️ Create detailed action plans✅️ Set short-term and long term goals.✅️ Review progress regularly"A goal without a plan is just a wish"💭<a href="https://elevatedpath.beehiiv.com/subscribe">The Art of Habits</a> (Its Free)

1: Strategic Planning 💡

Discipline turns goals into accomplishments✅️ Stick to your routines✅️ Avoid distractions and stay focused✅️ Practice consistency in everything you do"Discipline is the bridge between goals and accomplishment" 🏆

2: Self-Discipline 🧘‍♂️

Your network is your net worth.✅️ Build strong, genuine connections✅️ Seek out mentors and advisors✅️ Attend industry events and meet others"The richest. people in the world look to build a network, everyone else looks for work" 🧠

3: Networking 🌐

Master your time to master success.✅️ Prioritize tasks based on importance✅️ Use tools like calendars and 2nd brains✅️ Set deadlines and stick to them"Time management is life management" 📝<a href="https://elevatedpath.beehiiv.com/subscribe">The Art of Habits</a> (Its Free)

4: Time Management ⏰️

A positive mindset is a powerful tool.✅️ Focus on solutions, not problems✅️ Surround yourself with positivity✅️ Stay grateful for your blessings"Your mindset determines your success"🥇

5: Positive Mindset 🔥

motivationandinspiration

Motivation & Inspiration

habits

Habits

5 Secrets Succesful People
use to get ahead

<ul><li class="ql-align-justify">Consider the "opportunity cost" of a decision by evaluating what will be given up by choosing a particular option.</li><li class="ql-align-justify">It is not just about monetary costs but also includes time and other resources.</li></ul>

Consider Opportunity Costs

<ul><li class="ql-align-justify">We tend to oversimplify decisions into binary options.</li><li class="ql-align-justify">Explore multiple options simultaneously, leading to higher-quality work by allowing for a broader exploration of possibilities and reducing attachment to any single option.</li><li class="ql-align-justify ql-indent-1">Enhanced Creativity: Exploring different paths can spark creative solutions.</li><li class="ql-align-justify ql-indent-1">Risk Mitigation: If one track fails, others might still succeed.</li><li class="ql-align-justify">However, be wary of choice overload, as having too many options can paralyze decision-making.</li></ul>

Multi-Track for Better Solutions

<ul><li class="ql-align-justify">Explore solutions others have found for similar problems to gain insights and ideas.</li><li class="ql-align-justify">Look into different disciplines to discover solutions that may not be obvious initially.</li><li class="ql-align-justify">Gain external perspective by asking indicative questions to understand how others in similar situations have navigated challenges.</li></ul>

Leverage Existing Solutions

<ul><li class="ql-align-justify">Consider allowing someone else to play devil's advocate to challenge your choices.</li><li class="ql-align-justify">Encourage disagreement by building a case against your decision to analyze logical constraints.</li><li class="ql-align-justify">Take an observer perspective by stepping outside of your immediate viewpoint to analyze the situation as an impartial outsider. </li></ul>

Look out for Biases in your Decision-Making

<ul><li class="ql-align-justify">Utilize "ooching" by testing ideas on a small scale before committing fully.</li><li class="ql-align-justify">For instance, tech startups release beta versions of their apps to a select group of users to identify bugs and collect feedback.</li></ul>

Conduct Small Experiments

<ul><li class="ql-align-justify">Many of our choices are hijacked by what we believe is important in the moment that we’re faced with them.</li><li class="ql-align-justify">Shift focus to long-term consequences by imagining outcomes from a future perspective.</li></ul>

Consider Future Consequences

Ask yourself how you would feel about your decision 10 minutes, 10 months, and 10 years from now.

<ul><li class="ql-align-justify">Consider a range of possible outcomes each with an associated probability of success.</li><li class="ql-align-justify">Pre-mortems: Imagine that your decision has already failed and work backward to identify what could have caused the failure. Use this information to adjust probabilities and mitigate overconfidence.</li><li class="ql-align-justify">Add margins of safety to timelines to account for uncertainties. Allocate additional resources where uncertainties are high.</li></ul>

Embrace Uncertainty in Decision Outcomes

<ul><li class="ql-align-justify">When we do a certain thing every day we often don’t notice the gradual changes that, over time, can amount to a drastic situation.</li><li class="ql-align-justify">Tripwires are predefined conditions or thresholds that, when met, prompt a specific action or decision - such as setting budget limits or deadlines.</li><li class="ql-align-justify">This approach enables responding proactively rather than reactively - by creating signals to interrupt autopilot behaviour and prompt corrective actions.</li></ul>

Implement Decision-Making Triggers by Establishing Tripwires

<ol><li class="ql-align-justify">Widen Your Options: multi-tracking, learning from others</li><li class="ql-align-justify">Reality-Test Your Assumptions: seek disconfirming evidence, conduct small experiments</li><li class="ql-align-justify">Attain Distance Before Deciding:  10/10/10 rule, seek outsider perspective</li><li class="ql-align-justify">Prepare to Be Wrong: conduct premortems, set tripwires and make contingency plans</li></ol>

Summary: WRAP Process

How to make better choices in life and work.

Chip and Dan Heath, the bestselling authors of Switch and Made to Stick, tackle one of the most critical topics in our work and personal lives: how to make better decisions. 　    Research in psychology has revealed that our decisions are disrupted by an array of biases and irrationalities: We’re overconfident. We seek out information that supports us and downplay information that doesn’t. We get distracted by short-term emotions. When it comes to making choices, it seems, our brains are flawed instruments. Unfortunately, merely being aware of these shortcomings doesn’t fix the problem, any more than knowing that we are nearsighted helps us to see. The real question is: How can we do better?    In Decisive, the Heaths, based on an exhaustive study of the decision-making literature, introduce a four-step process designed to counteract these biases. Written in an engaging and compulsively readable style, Decisive takes readers on an unforgettable journey, from a rock star’s ingenious decision-making trick to a CEO’s disastrous acquisition, to a single question that can often resolve thorny personal decisions.    Along the way, we learn the answers to critical questions like these: How can we stop the cycle of agonizing over our decisions? How can we make group decisions without destructive politics? And how can we ensure that we don’t overlook precious opportunities to change our course?　    Decisive is the Heath brothers’ most powerful—and important—book yet, offering fresh strategies and practical tools enabling us to make better choices. Because the right decision, at the right moment, can make all the difference.

Discover the world of business and economics.

economics

Economics

creativity

Creativity

Chip Heath is the professor of Organizational Behavior in the Graduate School of Business at Stanford University.He received his B.S. degree in Industrial Engineering from Texas A&M University and his Ph.D. in Psychology from Stanford.He co-wrote a book titled Switch How to Change Things When Change Is Hard with his brother Dan Heath.

Chip Heath

Dan Heath is a Senior Fellow at Duke University's CASE center. Dan has an M.B.A. from Harvard Business School, and a B.A. from the Plan II Honors Program from the University of Texas at Austin.He co-wrote a book titled Switch: How to Change Things When Change Is Hard with his brother Chip Heath.

Dan Heath

Decisive

An existing business model is ported to a new industry (such as Razor and Blade to the coffee industry).Major advantages: other companies serve as blueprints and their mistakes can be avoided, enabling you to become an innovation leader in your industry.Major challenge: leaving enough room for experimentation and adaptation. Here, avoid the temptation to copy and paste.

Strategy 1 for new business model ideas. Transfer

Transfer and combine two business models.Especially innovative companies can even use three business models simultaneously (for example, Nestlé uses the Razor and Blade, Lock-In and Direct Selling patterns for Nespresso).Major advantage: synergies decrease the likelihood that competitors will imitate your business model.Major challenge: planning and execution become more complex.

Strategy 2 for new business model ideas. Combine

A company uses a successful business model for another product range (for example, from Nestlé Nespresso to Nestlé Special.T and Nestlé BabyNes).Only the most innovative businesses can pull this off.Major advantages: ability to capitalise on experiences and synergies; manageable risk.Major challenge: balancing change and stability

Strategy 3 for new business model ideas. Leverage

<ul><li class="ql-align-justify">Who is your customer and which customer segments do you mainly serve?</li><li class="ql-align-justify">Who are your most important customers?</li><li class="ql-align-justify">Who are other important stakeholders that need to be considered?</li><li class="ql-align-justify">What kinds of relationships do your customers expect and how do you maintain them?</li><li class="ql-align-justify">Who influences your customers (opinion leaders, stakeholders, users)?</li><li class="ql-align-justify">Do different departments address the same customer segments differently?</li><li class="ql-align-justify">What distribution channels do you use to serve your customers?</li><li class="ql-align-justify">What actors are behind your customers? Will the same people be here for the next ten years?</li></ul>

WHO? (customers)

<ul><li class="ql-align-justify">What do you offer to the customer?</li><li class="ql-align-justify">What customer problems do you solve and what needs do you meet?</li><li class="ql-align-justify">What are the products and services you put in place to accomplish this?</li><li class="ql-align-justify">What is the perceived customer value? (Usually this is not the same thing as a product or service’s technical specifications.)</li><li class="ql-align-justify">What value or benefit do you create for customers? How do you communicate it?</li><li class="ql-align-justify">How do your offerings differ from those of your competitors? What alternatives do customers have?</li><li class="ql-align-justify">Does your current business model meet your customers’ needs fully?</li></ul>

WHAT? (value proposition)

<ul><li class="ql-align-justify">How is the value proposition created?</li><li class="ql-align-justify">What key resources are behind your offerings and value proposition (e.g. physical, labour, financial resources, intellectual property)?</li><li class="ql-align-justify">What competencies and key activities do you need?</li><li class="ql-align-justify">Does your value chain make full use of your core competencies?</li><li class="ql-align-justify">Who are your most important partners? What is their relation to your business and what do they bring you?</li><li class="ql-align-justify">Who are your most important suppliers and what do they contribute?</li></ul>

HOW? (value chain)

<ul><li class="ql-align-justify">Why does the business model generate profits?</li><li class="ql-align-justify">What are your main sources of income?</li><li class="ql-align-justify">How is the income generated? What are customers willing to pay for?</li><li class="ql-align-justify">What are your main costs and the most significant cost drivers?</li><li class="ql-align-justify">What are the main financial risks in your current revenue model?</li></ul>

VALUE? (profit mechanism)

<ol><li class="ql-align-justify">Social media. </li><li class="ql-align-justify">Sharing community. </li><li class="ql-align-justify"> Freemium and add-ons. </li><li class="ql-align-justify">Digitally reloaded products. </li><li class="ql-align-justify">Integrated digital and physical experience.</li><li class="ql-align-justify">Big data.</li><li class="ql-align-justify">Gamification.</li><li class="ql-align-justify"> Digital identification.</li><li class="ql-align-justify"> Digital platforms.</li><li class="ql-align-justify">Peer-to-peer transactions and smart contracting.</li></ol>

Technology trends that have
triggered new business models

<ul><li class="ql-align-justify">Knowledge society : In mature societies, the basic needs are disproportionately highly satisfied. As a result, topics concerning the individual fulfilment of a person are becoming increasingly important.</li><li class="ql-align-justify">Networks and connectedness : The decline in transport and communication costs is bringing the world together as never before. The Internet, in particular, is giving our society an opportunity to discover itself in a new way.</li><li class="ql-align-justify">Centralisation: Urbanisation will continue at a faster pace, not only in the wealthy countries but the poorer ones too.</li></ul>

Business models that deliver the right
answer to social megatrends (1-3)

<ul><li class="ql-align-justify">Cocooning: In a globalised world, people are looking for a respite from hectic environments and closed societies.</li><li class="ql-align-justify">Resource shortages : The supply of resources will reach its limits – the current CO2 and global warming discussions are only the beginning.</li><li class="ql-align-justify">Pursuit for identity : In our pluralistic society, individuals will continue to seek uniqueness.</li></ul>

Business models that deliver the right
answer to social megatrends (4-6)

<ul><li class="ql-align-justify">Security : Natural catastrophes, terrorism and political uncertainties will continue to trigger the need for security.</li><li class="ql-align-justify">Self-administration : As a backlash to globalisation, in some areas decentralisation and local issues are gaining renewed importance and adherence.</li><li class="ql-align-justify">Demographic change: In contrast to the BRIC countries, the wealthy industrial nations are facing higher average ages and declining birth rates.</li></ul>

Business models that deliver the right
answer to social megatrends (7-9)

<ol><li class="ql-align-justify">Who are the relevant actors in your business model?</li><li class="ql-align-justify">What are their needs and what factors influence them?</li><li class="ql-align-justify">How have they changed over time?</li><li class="ql-align-justify">What does this imply for your business model?</li><li class="ql-align-justify">Will changes in the competitive environment create opportunities for a new business model? If so, which one(s)?</li></ol>

Checklist for actor and influencing factor analysis (Part 1)

<ol><li class="ql-align-justify">What, if any, significant business model innovations have occurred in your industry in the past? What were the catalysts of change?</li><li class="ql-align-justify">What technologies currently influence your business model</li><li class="ql-align-justify">How are technologies changing? What will technologies look like in three, five, seven or ten years?</li><li class="ql-align-justify">How are future technologies affecting your business model</li><li class="ql-align-justify">What trends in your ecosystem are relevant to you?</li><li class="ql-align-justify">How do these trends affect the various actors in your business model?</li><li class="ql-align-justify">Do they tend to amplify or minimise the weaknesses and strengths of your business model?</li></ol>

Checklist for actor and influencing factor analysis (Part 2)

Customers may wind up paying a hefty premium for extra features (VALUE), which may cover additional attributes, accompanying services, product extensions, or even individual customization of the product.They are free to choose whether they want to customize their product according to their individual preferences or prefer to disregard superfluous extras (WHAT).Customers may end up paying more for the final product than they would have for similar competing products because they chose additional optional features (WHAT).

Add-On: Additional Charge for Extras

The Add-On business model is especially well suited for hard-to-segment markets, where customer preferences often diverge vastly. Simply dividing products into different levels or versions is insufficient; and no optimal value proposition can be guaranteed for a large number of customers.The Add-On pattern can also work well in the B2B context, when multiple decision makers are involved. The Add-On pattern can be used to help certain technologies and accessories break through to the market. Often this requires add-ons to be cross-subsidised.

When and how to apply Add-On

<ul><li class="ql-align-justify">Can we provide a basic product to which customers can be price sensitive and then add on services?</li><li class="ql-align-justify">Can we lock our customers in so that they will buy the Add-On products from us?</li></ul>

Add-on. Some questions to ask

In the Affiliation business model, the company’s focus lies in supporting other parties to market products in order to benefit from successful transactions. With this, the company gains access to a diversified customer base without additional sales and marketing efforts. Affiliates usually operate on the basis of some form of pay-per-sale or pay-per-display system, and generally online.

Affiliation: Your success is my success

A strong ecosystem and passionate customers are a prerequisite for this pattern. Affiliation with partners enables companies to offer superior joint-value propositions. Affiliation works well because it generally leads to a win–win situation for all the parties involved. Merchants can drive traffic to their business and only incur costs once these efforts translate into actual sales. At the same time, the customers or other merchants who are funnelling the traffic are enticed by financial rewards. Choose Affiliation if you know what kinds of customers you want to attract.

When and how to apply Affiliation

<ul><li class="ql-align-justify">Can we capitalise on new customers and retain them in the long run?</li><li class="ql-align-justify">How do we choose the best possible partners for our affiliate network? </li><li class="ql-align-justify">What competencies can we offer our partners to create a superior joint value proposition?</li><li class="ql-align-justify">How can we create customer loyalty to our ecosystem?</li><li class="ql-align-justify">How do we handle backlash from customers if our partners do not deliver on their service?</li></ul>

Affiliation. Some questions to ask

Aikido refers to products or services that are radically different from the industry standard (WHAT?). In company terms, this means that it seeks to occupy a position that is diametrically opposed to that of its competitors, obviating the need for direct confrontation with them (VALUE?).Aikido principle is a form of differentiation, but a very provocative one. Differentiation factors that have been taken for granted in an industry are eliminated and completely new ones are created.

Aikido. Convert competitors’ strengths to
weaknesses

The Aikido pattern is very seductive, but it requires a lot of courage. If you want to use your competitors’ strengths to turn the business upside down, you really need to think outside the box. This pattern can work in any industry. You must be careful to heed any signs that you’re no longer on the right path. There might be some very good reasons why your competitors’ way of doing things is working so well for them. Market checks are always important, but when applying Aikido, they are crucial.

When and how to apply Aikido

<ul><li class="ql-align-justify">Do we have a lead customer who will follow us into the fray if we adopt the Aikido pattern?</li><li class="ql-align-justify">Is this lead customer representative of the target market, or so visionary that others are unlikely to follow suit?</li><li class="ql-align-justify">Can we overcome all the obstacles we meet in order to change the rules of the game?</li></ul>

Aikido. Some questions to ask

The Auction business model is based on the price of a product is not determined by the vendor alone, but buyers actively influence the final price of the goods. Finding a price starts with a potential buyer bidding a certain amount based on his/her willingness to pay. When the auction is over, the customer who has made the highest bid is committed to purchasing the product. The chief advantage is that they never have to spend more than they can afford or are willing to pay (WHAT?). The advantage for the vendor is that products can be allocated more efficiently across the market (VALUE?).

Auction. Going once, going twice... sold!

The Auction pattern’s allure and potential lie in its flexibility and vast possibilities for implementation. You can either offer your own products, or create a marketplace for sellers and buyers available to all sorts of products (think of eBay) or targeted towards niche products. In general, the Auction business model is highly scalable and can serve millions of users around the clock. These users invariably benefit from the network effect this scenario creates. The pattern works well if an auction creates more transparency for standardised products, such as C-parts or raw material.

When and how to apply Auction

A strong business model is the bedrock to business success. But all too often we fail to adapt, clinging to outdated models that are no longer delivering the results we need. The brains behind The Business Model Navigator have discovered that just 55 business models are responsible for 90% of the world's most successful businesses. These 55 models – from the Add-On model used by Ryanair to the Subscription model used by Spotify – provide the blueprints you need to revolutionise your business and drive powerful change. As well as providing a practical framework for adapting and innovating your business model, this book also includes each of the 55 models in a quick-read format that covers:<ul> <li>What it is </li><li>Who invented it and who uses it now </li><li>When and how to apply it</li></ul> “An excellent toolkit for developing your business model.” Dr Heinz Derenbach, CEO, Bosch Software Innovations

The Business Model Navigator

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