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How to explain "business modeling" to beginners?
I exchanged business modeling with my new colleagues a few days ago, but it is difficult to define "business modeling" or guide them to complete it. I can only use some metaphors to describe it, so I am thinking about how to express this concept systematically and humanely and how to guide it better. Then sum it up and use it as a training program later.

According to the definition, for the purpose of accurate data index growth, the process of causal decomposition of tasks and continuous expansion of data is called business modeling. Personally, the goal is 50% importance, 20% decomposition and 30% amplification.

Business modeling can be large or small, for the industry, for the company, for specific businesses and individuals.

Note: there is another concept in the product called system modeling, which is actually a subset in my opinion, but it pays more attention to process than data, so I won't go into details.

Generally speaking, if you want to live a meaningful life, you must set a goal. If you set a goal, you can't just shout slogans and do your work. If you want to work, you must find some reliable and feasible methods. After you have done it, you must always look back and see what the result is. He who does not advance loses ground. Always make the result better and better.

There is a RARRA mode, which is retained → activated → recommended → realized → updated. In fact, this is also the truth.

Personally, all the underlying indicators of modeling are based on the following three data, in fact, all the indicators established by the Internet business model.

The first is LTV, the life cycle value of a single customer.

The second is CAC, the cost of a single customer.

The third is TAM, the potential market size.

When your LTV>CAC, your previous fixed investment will be gradually diluted under your expected TAM, and your model will be established.

3. 1 Industry case, the respected entrepreneur Zuo Hui died young.

Before the shell, the relationship between intermediaries was a single point of hostility. The intermediary only regards the platform as a tool to defraud traffic for free, and the mode of large amount and extremely low frequency is single. People who pursue profits must look at other intermediaries with hostile eyes. I believe everyone can see 58 cases of being cheated in finding a house in various news. Let's take a look at the defects of the original business model.

Under the ACN mode of shell, all the agents who sign the shell enjoy the real estate. No matter which agency you are, whether you are a property entry person, a property maintenance person or a tour guide, you are all in the same network. As long as you make any contribution around the property and customers, customers will share your share when the final transaction is completed.

For the intermediary, one is "very uncertain and exclusive", the other is "relatively certain and stable, with low profit". In the latter mode, your reputation is gradually accumulated in your career accumulation. What would you choose?

3.2 For the company's case, let's take Amazon as an example.

The underlying logic of the retail industry is one. The larger the quantity, the lower the price. Let's look at Amazon's growth flywheel. Its business model is that I deliver goods to users, and the gross profit is extremely low. The lower the user's purchase price, the greater my purchase volume, and the stronger my bargaining power with suppliers. Users can buy products at lower prices and attract more users.

On the other hand, so did Carrefour and Wal-Mart in the early days. When all new brands enter, they need to charge admission fees and exhibition fees. In the hands of consumers, the price is relatively high, and the company's product selection direction will become whoever pays more, which also blocks a large number of emerging high-quality brands. Moreover, we saw that Wal-Mart adjusted its strategic direction in time, and everyone knew that Carrefour had come to an end in China. Similarly, both Sam member stores and Costco are fighting against the Wal-Mart model, and a single SKU has fewer SKUs and larger shipments, so I won't go into details.

3.3 Specific business cases, sharing how to do the business model of integral mall in a company.

At first, there was only link 1, but with the increasing natural flow in integral mall, integral mall naturally needs to spend more budget on the purchase of goods, otherwise the points distributed will become a cook without rice.

When there is no clear LTV and CAC for the whole product, this part of the data cannot be quantified. The core factor of integral mall's success is that users' recognition of integral mall products can guide users to do what the platform wants to do. So the second link is designed on the basis of the original business model.

If integral mall commercializes its own traffic, it will set two milestones. One is to earn profits beyond the original budget, and the other is to be responsible for its own profits and losses. Then this model can enlarge itself for a long time.

2.4 Is there a personal business model?

Yes, the simplest question is how to make more money. Give an inappropriate example.

Taking moving bricks as an example, moving bricks 1w can get the benefits of 500 yuan, and if you stop moving bricks, the benefits will stop. But what is even more frightening is that as you get older, there will be more and more bricks that you can't move. On the contrary, you will have fewer and fewer bricks, so you can only force yourself to move more bricks, which is a race against time.

For mental work, with the growth of time, you will have more and more experience, and your labor value will be higher in unit time, which is indeed a better path than manual labor.

But the pursuit of labor value per unit time is endless ~ and if it is only mental work in the office, it is higher than the upper limit of manual labor, but it is also endless. So if you continue to pursue it, you need to learn investment and risk management.