Three Important Business Model Lessons- Mistakes Millionaires Make
Post on 13-Apr-2017
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3 IMPORTANT
TRANSFORM
business model
Photo via kcustomables.com
to
YOUR
BUSINESS
changes
Excerpts from Mistakes Millionaires Make, by Harry Clark
Take the Entrepreneurial Risk Assessment at: www.pathwaypartnersllc.com
My name is Harry Clark and I thought I had it made.
By 2004, I had:
founded two INC. 500 companies
450 employees
a $100 million net worth
BUT I LOST
EVERYTHING
NO
RESOURCES
I realized that there are
to help entrepreneurs avoid
common mistakes
ENTREPENEURS
That lead me to interview
30
CRASHED
that
spectacularly
CLIMBED
and
back up
SHARE
I want to
what I discovered
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3 IMPORTANT
TRANSFORM
business model
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to
YOUR
BUSINESS
changes
Change #1
RECURRING
One time project revenue vs. REVENUES
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BOB VERDUN
One of the entrepreneurs
Computer Facility Integrators
In 1999, his company had
90% project based revenue
$15 million in sales
150 employees
He is the founder of
I interviewed is Bob Verdun
But then, in 2000
DOT
COM
BUBBLE
THE
BURST
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In just one month
his revenue
dropped by 60%
He almost
LOST EVERYTHING
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He started to slowly rebuild his business
on a solid foundation of
RECURRING REVENUE
BOB VERDUN
Within ten years
It now has
75% recurring revenue
$26 million in sales
130 employees
his company.
he transformed
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MOVE
Develop a strategy to
into a recurring revenue model
Lesson learned
YOUR
BUSINESS
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DIVERSIFICATION
Change #2
REVENUE
The other strategic move
industry
geography
client
made by Bob was an
INTENTIONAL
MIX OF
REVENUE
DIVERSITY
He diversified by
This has helped
create stability and predictability
necessary to plan and manage
his business carefully.
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Lesson learned
Develop a
of diversifying
your revenue
sources
DISCIPLINE
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RISK
Change #3
GOVERNMENT
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Working with the government is a
DOUBLE
EDGED SWORD
It can provide
STABILITY
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RESPECTABLE PROFITABILITY
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And a sense of
HELPING
SOCIETY
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However, based on
INNOVATE
the interviews made,
the more you
the more you are
EXPOSED
TO RISK
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Governments generally don’t
INNOVATE
and don’t do well with
PEOPLE THAT DO
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They can attack
VICIOUSLY and in an
arbitrary
manner
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Lesson learned
If the business is heavily regulated or
has a lot of governmental revenue,
the more innovative it is,
RISK OF BEING ATTACKED the higher is the
Innovation is
DIRECTLY PROPORTIONAL
to risk
when government is concerned
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Learn more by reading my up-coming book
Or by taking the
Entrepreneurial Risk Assessment Survey at
http://pathwaypartnersllc.com/
Or by subscribing
And remember: to my blog
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