Author: John Mullins and Randy Komisar
I had the pleasure of meeting Professor John Mullins during one of his India visits. Even greater was my joy to have spent time as his student in a three day executive program called “Tools for growth”
I learnt a lot from him on the subject of entrepreneurship and business growth. Beyond the subject I picked skills around teaching, conducting cases, holding a class of 50, to grab attention etc. As a teacher, trainer and coach to entrepreneurs and CEOs, those interactions have enabled me deliver more and better.
Building a business model is one of the essential challenges of every entrepreneur. Anyone who has had even a whiff of exposure to starting a business will know that it is an iterative process. While many resists to use the power of iteration due to the lack of self-discipline, it is also fueled by the absence of tools and techniques. John along with Randy Komisar, provide a very interesting and robust framework and an approach to solving this problem.
The business model framework described in the book is very helpful for early stage enterprises because of the importance it lays to the aspect of cash. The five models namely revenue, gross-margin, operating, working capital and investment together provide a comprehensive view to looking at and designing a good business model.
Some of the questions raised by the authors are penetrating and will get the entrepreneur thinking about the economics of the enterprise. The other interesting aspect is the examples of analogs, antilogs and leaps of faith. These have brought a kind of scientific rigor to the widely acknowledged thought “Don’t reinvent the wheel”
Every business will benefit immensely bu using these 4 simple yet easy tools. The authors provide very interesting case of companies that have put to use these concepts from across the world. The reader from the Indian subcontinent will find some familiar names.
Getting to plan B if read and implemented will help you and your company find the right model be it B, C,D… and at the end of the iteration you will find an economically sound highly probable business model!