How to discover successful business models?Business success stories resulting from serendipity

In the business world, success stories are always fascinating.Looking back at the rise of Starbucks and McDonald's, we find that the success of these companies was no accident.

This article will take an in-depth look at these two compelling business cases and summarize the key points of a successful business model.

Business success stories resulting from serendipity

This is a fascinating story. Howard, the owner of Starbucks, became associated with Starbucks because Starbucks purchased large quantities of his company's coffee machine equipment.

So he decided to dig into which company was doing such a booming business, and eventually discovered Starbucks.

As a result, Howard acquired Starbucks, but still retained the Starbucks brand name.

It's a similar story at McDonald's, with Kroc selling ice cream mixers and a burger restaurant buying a lot of equipment.

He went to investigate in person and was surprised to find how popular McDonald's business was.

Eventually, he succeeded in acquiring McDonald's.

How to discover successful business models?

A successful business model may not be designed by oneself, but is more likely to be discovered.

When it comes to investing, never put resources into a startup that hasn’t been fully proven yet.

When we invested in a company in the past, we only focused on the future development potential of the entrepreneurial project and the ability of the founder.

However, this line of thinking is completely wrong.

Nowadays, no matter how excellent the project is and how outstanding the founder is, as long as it is at the 0-1 stage and has not yet been stabilized, we will never invest.

Profits in the 0-1 stage are accidental. Even the most outstanding entrepreneurs will not succeed in the early stages of a new project (within 3 years）It is still possible to fail or take detours.

However, stages 1-10 are more certain, and actual profits are also made at this stage.

• Judgment criteria:After stage 0-1, at least 3 consecutive years are requiredprofit, and profit margins continue to rise,Only ability can be consideredEntered stages 1-10stable period.
• Note that you must look at profit margins, not performance and GMV (gross merchandise volume).
• Because if performance and GMV are through advertising and offlinedrainageWhat is produced is likely to be false performance and GMV with low profits.

We are more willing to invest in companies that are already stable from 0 to 1 and are expected to grow tenfold or even a hundredfold in the future.

Helping them achieve scale is easier, and the rewards are higher and more certain.

Key points of a successful business model

include:

1. Satisfaction of customer needs: The business model should be able to effectively meet customer needs and provide valuable products or services.

2. marketPositioningand differentiation: A clear positioning and differentiation from competitors allows the company to stand out in the market.

3. Sustainable competitive advantage: The business model should create and maintain a company's competitive advantage in the market and ensure long-term success.

4. Innovation and flexibility: Continuous innovation and flexibility are keys to a successful business model, allowing companies to adapt to changing market conditions.

5. Cost-effectiveness: The business model should be cost-effective and ensure profitability while delivering the product or service.

6. Customer relationship management: Build and maintain positive customer relationships, promoting loyalty and word-of-mouth.

7. Suitable income stream: Design sustainable revenue streams to ensure the business can continue to be profitable and support business expansion.

8. Resource optimization: Effectively utilize resources, including human, material and financial resources, to achieve optimal operational results.

9. Adaptability and change management: The business model should have the ability to adapt to changing market and industry environments and adopt effective change management strategies.

10. Regulatory Compliance: Follow regulations and compliance requirements to ensure that the company operates within the legal framework and avoid potential legal risks.

Together, these key points form a powerful business model that lays the foundation for companies to create lasting competitive advantages and sustainable business growth.

Conclusion

• By analyzing the success stories of Starbucks and McDonald's, we deeply understand the importance of business model discovery and design.
• In investment decisions, avoiding the traps in stages 0-1 and looking for opportunities with certainty and profit in stages 1-10 is the key to successful investment.
• In the balance of risk and return, choosing already stable companies and helping them achieve scale will become a reliable way for investors to obtain returns.

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