REVIEW: "Finding a business model" - a book for those who are looking for their place under the sun

Those whose childhood had 90 years of the twentieth century took place in the provincial towns, have been exposed for at least 1 time a the concept of "choice of business model": remember, at one time a very popular type of summer earnings for teenagers was washing machines? We had to choose where to deploy a makeshift "car wash", how to wash more cars in less time in which to get water, how to attract accidentally parked drivers not only the "guise", but also a combination of "price + some no purity" and in this case even earn something.

It took some 15 years, amatorov- "Car" even in the most distant provinces drove the professional car wash, no one would give his car in the hands of teenagers, all niche seems to be busy - but that does not mean that in the minds of young (and not so) enterprising people lost the desire to find a way to earn money, do your own business.

The boys from my yard early 90s met (without knowing it) with business planning and implementation of the operating model of 15-20 years ago. And for the rest of our readers it is useful to take and read a book, which will be discussed today. In particular - if you want to leave the cozy corporate "nest" (where someone decides everything for you) and let an independent flight over the vast expanses, whose name - "Entrepreneurship".

On my desk all week "lived" a book written by John Mullins and Randy Komisar - "Search for the business model: How to save a startup, changing the plan in time". Its authors - not some "armchair scientists" who are building their books exclusively on theories and research paper. John Mullins many traveled to Africa, Europe, and spent much time in India; I wrote a monograph on business planning and regularly writes and speaks on the topic of business planning and venture investment in developing countries. His colleague Randy Komisar is not far behind: he not only engaged in private law practice, but also founded several large companies, has worked in many areas - from the janitor to the musician and the financial and executive director. And together they have written a book in 2009 in which the clear language with examples of famous and lesser-known (but because - not less profitable) companies told what is in the business model as it properly "cook" and as a time to change priorities, if you suddenly realized that your business has come into dead end.

What I have learned by reading this book?

Startup - contrary to popular definition today - it's not just some website that offers money for some goods or services. Startup is essentially any new enterprise, and in the book just more examples of the material sphere and the sphere of off-line services (although the canonical examples of eBay, Google, Amazon did not disappear). In my opinion, today's IT entrepreneur experience and lessons from the clothing brand Zara, Warehouse club Costco and supermarkets Pantaloon will be no less useful and interesting than examples of Internet companies and IT vendors, which we all read dozens (if not hundreds) times. The most important lesson, which then extracts: "Develop and improve your idea and his work, constantly watching others'.

The authors make it clear that universal "recipe" for effective business model does not exist. I know the tutorials in liberal arts colleges to the contrary, finance and management theorists have constantly talk about some kind of Holy Grail business planning, which should ideally be a business model and a business plan... but in real life, in 90 cases out of 100 is simply not it happens. Traditional business plan in most cases - is a set of assumptions that lead to impotence and offers only one optimistic scenario. In life, most often you need a backup plan (which in the end will be the core, most likely). You can copy and repeat: sometimes it helps, sometimes - not. This book shows in which cases up works, and in what - no.

An important lesson for me as a manager: always build a list of assumptions and dashboards. Analysis of observations and assumptions made will fill the gaps that inevitably arise when analyzing the market and trying to build their own business model.

Planning requires great attention to detail and may seem boring and tedious, but effectively creates a plan - not the number of scribbled sheets. Highlight important.

Another lesson from the authors of the "Search" for all (not just for those who are engaged in business): it is impossible to prepare a backup plan in advance. He emerges only in the course of any activity, and business - is no exception. And the process of analysis, comparison, selection analogs and the antipodes never ends; so deciding to open his own business, be prepared not to sprint, but a marathon.

It does not affect the efficiency of the business model and the size of the company: Book gives examples of how small and no one has an unknown Skype for the year collected 7 million people are without a single dollar on marketing costs; and large VoIP-company threw on advertising and other "marketing wind" several hundred million dollars - and for 4 years I could hardly scrape together a couple of million subscribers. What matters is the right choice of business model and its adjustment over time.

The main feature of the book: An abundance of affordable and interesting examples, as well as many readers familiar brands from offline and online world. Frankly, if in the 4th year of university on my desk was a book, many questions about operational management, gross margin, operational planning and working capital would have been much clearer and easier.

To recommend reading

students - as the humanities (as an alternative to complicated and boring textbooks on business planning and financial management), and "techies" (if you do not want to just "write steep each and all were stunned, and then we will be like Facebook, "and want to really get down to business, which is profitable and can pay back the financial and develop over the long term).

Teachers on business planning and management - to "tighten" the ability to bring alive and understandable for the youth of today examples and reference stop at Ford, British Petroleum and other "giants", which is infinitely distant and unfamiliar to most people aged 17 to 27.

entrepreneurs - that from a business planning theory finally go to practice and learn how to record, compare, draw conclusions, correct development own business and to operate not only the figures in the balance sheet, but also qualitative indicators of the company, attached to this faceless figures.

Three quotations from "the search business model" for each day

"Unfortunately, a beginner usually employed mistaken. But unlike the boy from her husband is in his actions after his first plan failed. "

"When a company has barely begun to work, dies, the cause of her death is often explained as" We have run out cash. " But the depletion of cash reserves is not the cause! This is a symptom. A symptom of the fact that business model does not work. "

"Mixing and matching nuggets of information from one analogue here, one there antipode creates a creative melting cauldron in which boiled new strategies and business models, through which your company can stand out in their industry. "

Finally I will say that the "Search for the business model" - it is a culinary book with examples, but without a detailed recipe: you can read examples various delicious dishes, but to do them or even invent their new you can, just by going to the kitchen and the dishes by themselves, machinery and products for work. Until you try "cook" their own business - no one "cook" it for you. Read on and try it!

"Search for the business model," John Mullins and Randy Komisar

Buy at amazon