The BEST Business Model Ever!

Never before in the history of humanity have there been a time as this when the whole world seems to be realizing finally, the very intent and purpose for creation – collaboration. The stiff competition that often characterized the industrial age is gradually giving way to this new age where passion thrives and information rules. Businesses are beginning to awaken to the fact that unless there’s something SIGNIFICANTLY unusual about their business, there’s no way they are going to remain relevant. It is increasingly becoming obvious, that the businesses that will thrive in this new age are those who are consistently willing to touch a heart before asking for a hand – being helpful.

No longer will the market tolerate businesses that are out to get before giving, no longer will the market tolerate businesses that are not different and making a difference , no longer will the market tolerate businesses that are not unique and being useful, no longer will the market tolerate businesses that don’t stand for something, no longer will the market tolerate businesses that are not contributing to the success of their customers.

In this new age, the law of exchange which states that; ‘to get, you must first give’ is the standard on which every business that aspires to grow must be built. Every site I visit is now giving away something, mostly an eBook in exchange for my email. Everyone is sharing something, whether it’s a link on Twitter, a video on YouTube or a picture on FaceBook. The whole world seems to be in the business of helping someone. To thrive in this new age, being Helpful must become your new business model. Woven under the very fabric of your business must be a strong desire to help. Your business must be built on the principle of helping someone accomplish a particular goal or objective as a result of coming in contact with the product or service your business offers.

To me, valuation is a very cool thing. We talk about dashboards. We talk about getting the pulse on our business, and I think one of the most important things we can do is really understand how our business is sitting. And since valuation really is the ultimate business dashboard – and it incorporates every facet of the business – it really makes sense that business owners understand that.

There are a lot of different values; Rob Slee and his book Private Capital Markets talks about 20 different levels of value. So, when you talk about value, you need to get really specific about what you are talking about.

There are three levels of value I want to talk about, and the first is fair market value. Fair market value is the value an appraiser would put on your business for legal reasons or IRS reasons.

The value that most of us think about as business owners is investment or strategic value. That’s the value a buyer would write a check for or structure a deal for your company on.

And there’s really a third value called dynamic transaction value, when you have a business that’s very desired and you have multiple companies bidding for your business.

But in terms of how businesses think about it, one of the things to remember is value is analyzed. Price is negotiated.

To me, that’s a critical distinction. In other words, business owners need to understand you can do all the analysis in the world and come up with something that seems to make sense, but the real acid test is what the business is going to sell for in the market, and those are two very different things.

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