Business models define how a company creates, delivers, and captures value. There are numerous business models, each tailored to specific industries, customer segments, and value propositions. Today, most businesses are forced to operate within multiple models to build a repeating customer base. Here’s an overview of the top business models.

1. Brick and Mortar: Traditional physical business model where customers visit a store or office. Examples include retail stores, restaurants, and clinics.
2. E-commerce: Selling products or services online. This can be through a company’s own website or through platforms like Amazon or eBay.
3. Subscription: Customers pay a recurring fee to access a product or service. Examples include Netflix, Spotify, and many software-as-a-service (SaaS) companies.
4. Freemium: A combination of “free” and “premium”. Basic services are provided for free, but advanced features or services come at a cost. Examples include Dropbox and many mobile apps.
5. Affiliate Marketing: Companies earn commissions by promoting other company’s products or services. Bloggers and influencers often use this model.
6. Franchise: A franchisee pays an initial fee and ongoing royalties to a franchisor. In return, the franchisee gains the use of a trademark, ongoing support, and the right to use the franchisor’s system of doing business. Examples include McDonald’s and Subway.
7. Advertising: Revenue is generated by providing advertising space. Many online platforms, like Google and Facebook, and traditional media outlets, like TV and radio, use this model.
8. Brokerage: Acts as an intermediary between buyers and sellers. The broker earns a fee upon the successful sale or other transaction. Real estate agents and stock brokers operate on this model.
9. Razor and Blades: Companies sell one item at a low price (or give it away for free) and then make profits on the sale of refills or associated products. The classic example is razors (cheap) and blades (expensive).
10. Crowdsourcing: Outsourcing tasks to a large group of people or community (the “crowd”) through an open call. Wikipedia and Kickstarter are examples.
11. Peer-to-Peer (P2P): Enables individuals to lend or borrow from each other, bypassing traditional institutions like banks. Examples include Airbnb and Uber.
12. Direct Sales: Products are sold directly to the consumer without a fixed retail location. Examples include Tupperware and Avon.
13. Licensing: Allows others to use intellectual property like patents, trademarks, copyrights, or brands for a fee.
14. Agency Model: Acts on behalf of the supplier and sells to customers. The agent earns a commission on each sale.
15. Bait and Hook: Similar to the razor-blades model. The basic product is sold cheaply or given away for free, while the consumables are sold at a high margin.
16. Data Selling: Companies collect data and then sell it to other companies who can use it for various purposes, including advertising and market research.
17. Reverse Auction: Customers state what they’re willing to pay for a service, and providers bid to offer their services. Priceline is an example.
18. Low Touch vs. High Touch: In a low-touch model, customers can use the product or service without much interaction with the company. In a high-touch model, there’s significant interaction and support.
19. Marketplace: Platforms that connect buyers and sellers, taking a fee from each transaction. Examples include Etsy and eBay.
20. Wholesale: Selling products in bulk at a discount to retailers who then sell them to end customers.
21. Dropshipping: Retailers don’t keep products in stock. Instead, they buy the product from a third party and have it shipped directly to the customer.

This is by no means an exhaustive list, and many businesses operate using a combination of these models. Additionally, as industries evolve and technology advances, new business models continue to emerge.

Trademarks are used to identify and distinguish goods and services from those of others in the marketplace. Here’s what can typically be trademarked:

1. Words: This includes brand names, slogans, and any other word that identifies the source of goods or services. For example, “Nike” and “Just Do It” are both trademarked by Nike, Inc.
2. Symbols and Logos: These are graphical representations that identify a brand. The Nike “swoosh” is a well-known example.
3. Colors: In some cases, a specific color associated with a product or service can be trademarked if it has acquired a secondary meaning and is non-functional. For instance, the particular shade of purple used for Cadbury chocolate wrappers is trademarked in some jurisdictions.
4. Sounds: Sounds that distinguish a brand can be trademarked. The MGM lion’s roar and the NBC chimes are examples of trademarked sounds.
5. Shapes: The shape of a product or its packaging can be trademarked if it’s distinctive. For example, the shape of the Coca-Cola bottle is trademarked.
6. Scents: While rare, some scents have been trademarked when they are non-functional and serve to identify the source of a product.
7. Trade Dress: This refers to the overall look and feel of a product or its packaging. It can include features such as size, shape, color, texture, and graphics. For it to be trademarked, it must be non-functional and distinctive.
8. Phrases and Slogans: Short phrases or slogans that promote or identify a brand can be trademarked. For example, “Have it your way” by Burger King.
9. Combinations: Any combination of the above elements can also be trademarked. For instance, a logo that includes both words and symbols.

It’s important to note that for something to be trademarked, it typically needs to be distinctive and not merely descriptive or generic for the goods/services it represents. Additionally, the trademark must be used in commerce, meaning it’s used in the sale of goods or services. Lastly, trademark laws and what can be trademarked might vary from one jurisdiction to another. It’s always a good idea to consult with a trademark attorney or expert in the specific jurisdiction where you intend to register a trademark.

Why Trademark?

Obtaining a trademark can be a crucial step for businesses and individuals who want to protect their brand identity. Here are some scenarios when it makes sense to get a trademark:

1. Brand Protection: If you’ve developed a unique brand name, logo, slogan, or any other identifier for your business, product, or service, trademarking helps protect it from unauthorized use by competitors.
2. Market Presence: If you’re planning to expand your business or have a significant market presence, a trademark can prevent others from capitalizing on your brand’s reputation.
3. Franchising or Licensing: If you’re considering franchising your business or licensing your brand to third parties, having a registered trademark can be essential for legal clarity and protection.
4. E-commerce and Online Presence: With the rise of online marketplaces and e-commerce platforms, having a trademark can help you take action against counterfeit products or unauthorized sellers.
5. Prevent Confusion: A trademark ensures that consumers can distinguish your products or services from those of competitors, preventing confusion in the marketplace.
6. Asset Building: Trademarks can become valuable assets. Over time, as your brand gains recognition and trust, the value of your trademark can increase, potentially making your business more attractive to investors or buyers.
7. Legal Advantage: Owning a registered trademark can provide significant legal advantages in disputes. It can serve as prima facie evidence of ownership and validity, making it easier to enforce your rights.
8. Geographical Expansion: If you’re planning to expand your business to other regions or countries, having a trademark in your home country can sometimes make it easier to register your trademark in other jurisdictions.
9. Deterrence: A registered trademark can act as a deterrent, discouraging others from using a similar name or logo, as they’ll be aware of potential legal consequences.
10. Monetization: Trademarks can be monetized through licensing agreements, allowing others to use your brand in exchange for licensing fees.

However, before pursuing a trademark, consider the following:

• Cost: Trademark registration involves fees, and defending a trademark can be costly.
• Research: Ensure that your desired trademark isn’t already in use or too similar to existing trademarks to avoid potential legal disputes.
• Maintenance: Trademarks require periodic renewals and, in some jurisdictions, proof of continued use.

Given these considerations, if you believe that the benefits of having a trademark outweigh the costs and potential challenges, and it aligns with your business strategy, it might be the right time to pursue trademark registration. While you can obtain a trademark without a lawyer, consulting with a trademark attorney can provide clarity tailored to your specific situation.

How It Works

Registering a trademark with the United States Patent and Trademark Office (USPTO) involves several steps. Here’s a general overview of the process:

1. Preliminary Search: Before filing, it’s advisable to conduct a search on the USPTO’s Trademark Electronic Search System (TESS) to see if a similar trademark is already registered or pending. This can help avoid potential conflicts and refusals.
2. Determine Filing Basis: Decide on your filing basis. The most common are:
   • Use in Commerce: You’re already using the trademark in commerce.
   • Intent to Use: You haven’t used the trademark yet but intend to in the near future.
3. Application Submission: File your application online using the Trademark Electronic Application System (TEAS). There are different forms available (e.g., TEAS Plus, TEAS Standard), each with its own requirements and fees.
4. USPTO Review: After submission, a USPTO examining attorney will review your application. This can take several months. The attorney will check for compliance with legal requirements and potential conflicts with existing trademarks.
5. Office Actions: If there are issues with your application, the examining attorney will issue an “Office Action” detailing the problems. You’ll have six months to respond to this action. If you don’t respond in time, your application will be abandoned.
6. Publication: If the examining attorney approves your application, it will be published in the “Official Gazette,” a weekly USPTO publication. This gives third parties a chance to oppose the registration if they believe it would infringe on their rights.
7. Opposition Period: After publication, there’s a 30-day window during which third parties can file an opposition to your trademark. If opposed, proceedings will take place before the Trademark Trial and Appeal Board (TTAB).
8. Registration: If there’s no opposition, or if you successfully overcome an opposition, the USPTO will register the trademark (for an “Intent to Use” application, you’ll first need to show proof of use).
9. Maintenance: Once registered, you must maintain the trademark. This includes filing specific documents:
   • Declaration of Use between the 5th and 6th year after registration.
   • Renewal every 10 years after registration.
10. Use the ® Symbol: Once registered, you can use the ® symbol with your trademark. Before registration, you can use “TM” for goods or “SM” for services to indicate that you’re claiming trademark rights.

How long it lasts

The duration of a trademark varies by jurisdiction, but in many countries, a trademark can last indefinitely as long as certain conditions are met. Here’s a general overview:

1. Initial Duration: In many jurisdictions, including the United States, a registered trademark initially lasts for 10 years.
2. Renewal: After the initial period, a trademark can typically be renewed indefinitely in successive periods (often every 10 years). However, the trademark owner must continue to use the mark in commerce and meet other renewal requirements.
3. Proof of Use: To maintain the trademark, the owner may need to show proof of continued use at certain intervals. For instance, in the U.S., between the 5th and 6th year after the initial registration, the owner must file a “Declaration of Use” to confirm the mark is still in use. If not filed, the trademark registration will be canceled.
4. Non-use: If a trademark isn’t used for a certain period (commonly 3-5 years) without a valid reason, it may become vulnerable to cancellation for non-use. This means other parties can challenge the trademark’s validity based on the owner’s lack of use.
5. Renewal Fees: Each renewal typically requires a fee. Failure to pay the renewal fee can result in the expiration of the trademark registration.
6. Other Maintenance Documents: Depending on the jurisdiction, there might be other documents or affidavits that the trademark owner needs to file periodically to maintain the trademark.

Notable Examples

Here are 50 well-known trademarked slogans/phrases and the companies they’re associated with:

1. “Just Do It” – Nike
2. “I’m Lovin’ It” – McDonald’s
3. “Think Different” – Apple
4. “Have It Your Way” – Burger King
5. “Open Happiness” – Coca-Cola
6. “Taste the Rainbow” – Skittles
7. “Red Bull Gives You Wings” – Red Bull
8. “The Happiest Place On Earth” – Disneyland/Disney World
9. “Can You Hear Me Now? Good.” – Verizon
10. “Because You’re Worth It” – L’Oréal
11. “Finger Lickin’ Good” – KFC
12. “Every Little Helps” – Tesco
13. “Impossible Is Nothing” – Adidas
14. “Eat Fresh” – Subway
15. “Save Money. Live Better.” – Walmart
16. “The Best a Man Can Get” – Gillette
17. “Snap, Crackle, Pop” – Rice Krispies
18. “Mmm Mmm Good!” – Campbell’s Soup
19. “It Gives You Wings” – Red Bull
20. “There’s No Place Like Home” – Zillow
21. “Share Moments. Share Life.” – Kodak
22. “The Quicker Picker Upper” – Bounty
23. “Like a Good Neighbor, State Farm is There” – State Farm
24. “The Breakfast of Champions” – Wheaties
25. “Have a Break, Have a Kit Kat” – Kit Kat
26. “Melts in Your Mouth, Not in Your Hands” – M&M’s
27. “What’s in Your Wallet?” – Capital One
28. “You’re in Good Hands” – Allstate
29. “America Runs on Dunkin’” – Dunkin’ Donuts
30. “We Bring Good Things to Life” – General Electric
31. “When It Absolutely, Positively Has to Be There Overnight” – FedEx
32. “Connecting People” – Nokia
33. “Let’s Go Places” – Toyota
34. “Zoom Zoom” – Mazda
35. “The Ultimate Driving Machine” – BMW
36. “Drivers Wanted” – Volkswagen
37. “Fly the Friendly Skies” – United Airlines
38. “Don’t Leave Home Without It” – American Express
39. “Tastes So Good, Cats Ask for It by Name” – Meow Mix
40. “The King of Beers” – Budweiser
41. “Where’s the Beef?” – Wendy’s
42. “Good to the Last Drop” – Maxwell House
43. “It’s Everywhere You Want to Be” – Visa
44. “The Few, The Proud, The Marines” – U.S. Marine Corps
45. “The World’s Online Marketplace” – eBay
46. “The Snack That Smiles Back” – Goldfish Crackers
47. “Betcha Can’t Eat Just One” – Lay’s
48. “Keeps Going and Going and Going” – Energizer
49. “A Diamond Is Forever” – De Beers
50. “When You Care Enough to Send the Very Best” – Hallmark

These slogans are designed to be memorable and to convey a particular message or feeling associated with the brand. They play a significant role in advertising and brand recognition.

Pricing refers to the process of determining the value that a business will receive in exchange for its products or services. It’s the amount of money that customers have to pay to acquire a product or service. Pricing is a critical aspect of business strategy and can significantly impact a company’s profitability, market share, and overall brand perception. Here’s an overview of pricing in terms of business:

Objectives of Pricing

• Profit Maximization: Setting prices to achieve the highest possible profit.
• Sales Maximization: Setting prices to achieve the highest sales volume, even if it means lower profits.
• Market Penetration: Setting lower prices to attract a large number of customers and gain a significant market share.
• Market Skimming: Setting higher prices for new and innovative products to “skim” maximum revenue layer by layer from segments willing to pay more.
• Competitive Matching: Setting prices based on what competitors are charging.
• Survival: Setting prices low to cover costs and stay in the market.

Factors Influencing Pricing

• Costs: The fundamental factor is the cost of producing the product or service. This includes both variable and fixed costs.
• Demand: The willingness and ability of consumers to purchase a product at different prices.
• Competition: Prices might be influenced by what competitors are charging for similar products or services.
• Economic Conditions: Inflation, deflation, and other economic factors can influence pricing.
• Government Regulations: In some industries, the government might regulate how much can be charged for products or services.
• Brand Image and Value Proposition: Premium brands might charge higher prices due to the perceived value they offer.

Pricing Strategies

• Cost-Plus Pricing: Adding a markup percentage to the cost of the product.
• Value-Based Pricing: Setting prices based on the perceived value to the customer rather than the cost of the product.
• Dynamic Pricing: Adjusting prices based on current market demands.
• Freemium: Offering basic services for free while charging for advanced features.
• Bundle Pricing: Selling multiple products together at a reduced price.
• Psychological Pricing: Setting prices that have a psychological impact, e.g., $9.99 instead of $10.

Challenges in Pricing

• Finding the Right Balance: Pricing too high might alienate potential customers, while pricing too low might hurt profitability.
• Dealing with Competitive Price Wars: Competitors might lower their prices, forcing a business to adjust its pricing strategy.
• Evolving Consumer Perceptions: As brands evolve and markets change, the perceived value of products can shift, affecting pricing.
• Global Pricing: For businesses operating internationally, they must consider currency fluctuations, local market conditions, and varying costs.

Monitoring and Adjusting Prices

It’s essential for businesses to regularly review and adjust their prices based on market conditions, costs, and other relevant factors. Monitoring and adjusting prices is a dynamic process that allows businesses to remain competitive, maximize profits, and ensure they are delivering value to their customers. Like most business activities this is not a one-time activity but an ongoing process. It requires a combination of data analysis, market understanding, and strategic foresight to ensure that a business remains profitable while meeting the needs and expectations of its customers. Here’s a deeper dive into the importance and methods of monitoring and adjusting prices:

Why Monitor and Adjust Prices?

• Changing Market Conditions: Economic fluctuations, seasonal demand variations, and other external factors can influence the optimal price point.
• Competitive Landscape: New entrants, changes in competitor pricing, or shifts in market share can necessitate price adjustments.
• Cost Variations: Changes in production, labor, or material costs can impact the profitability of current price points.
• Customer Feedback and Sales Data: If products are not selling as expected or if there’s a surge in demand, it might indicate a need for price adjustment.
• Product Lifecycle: As products move through their lifecycle—from introduction to growth, maturity, and decline—the optimal pricing strategy may change.

Methods for Monitoring Prices:

• Price Tracking Software: Tools that automatically monitor competitor prices and market trends.
• Regular Financial Analysis: Periodic reviews of profit margins, sales volumes, and other financial metrics.
• Market Research: Surveys, focus groups, and other methods to gauge customer perceptions and willingness to pay.
• Sales Feedback: Direct feedback from the sales team about customer reactions and competitor pricing strategies.
• Strategies for Adjusting Prices:

Discounting: Temporary price reductions to boost sales, clear out inventory, or attract new customers.

• Surge Pricing: Increasing prices when demand is high, commonly seen in industries like ride-sharing or hotel bookings.
• Versioning: Offering different versions of a product at different price points to cater to various customer segments.
• Loyalty Pricing: Offering special prices or discounts to loyal or long-term customers.
• Geographic Pricing: Adjusting prices based on the location, taking into account factors like purchasing power, local competition, and logistical costs.

Challenges in Adjusting Prices:

• Customer Perception: Frequent price changes can confuse or alienate customers. It’s crucial to communicate the reasons for price adjustments transparently.
• Operational Challenges: Especially in brick-and-mortar settings, changing prices can require updates to systems, labels, and promotional materials.
• Contractual Obligations: Some businesses may have contracts with clients that specify prices for a set period, limiting flexibility.

Best Practices:

• Test Before Implementing: Before rolling out a new pricing strategy, test it in a specific region or segment to gauge its impact.
• Stay Informed: Continuously monitor industry news, competitor actions, and market trends.
• Engage with Customers: Understand their price sensitivity and how they perceive value.
• Review Regularly: Set periodic reviews, whether monthly, quarterly, or annually, to assess and adjust pricing strategies.

Pricing Examples

Each of these pricing strategies can be effective depending on the industry, target audience, and specific goals of the business.

• Cost-Plus Pricing: A bakery determines the cost of producing a loaf of bread and adds a fixed percentage as markup to determine its selling price.
• Dynamic Pricing: Airlines adjust ticket prices in real-time based on factors like demand, time to departure, and seat availability.
• Penetration Pricing: A new streaming service offers a significantly discounted subscription rate to quickly attract users and gain market share.
• Skimming Pricing: A tech company releases a cutting-edge smartphone and sets a high initial price, targeting early adopters willing to pay a premium.
• Value-Based Pricing: A luxury watch brand prices its products based on the perceived prestige and status they offer, rather than just production costs.
• Freemium: A software company offers a basic version of its app for free but charges for advanced features or functionalities.
• Bundle Pricing: A cable company offers a package deal for TV, internet, and phone services at a reduced rate compared to purchasing each separately.
• Psychological Pricing: Retail stores price products at $9.99 instead of $10, making them appear more affordable.
• Geographic Pricing: An e-commerce platform varies its product prices based on the customer’s location, considering factors like shipping costs and local purchasing power.
• Tiered Pricing: A cloud storage provider offers different pricing levels based on the amount of storage space a customer needs.
• Loss Leader Pricing: A supermarket sells certain popular items at a loss to attract customers, hoping they’ll make additional purchases.
• Anchor Pricing: An online retailer displays the original price next to the discounted price to highlight the savings and make the deal more attractive.
• Pay What You Want: A musician allows fans to pay any amount they wish for a digital album, even if it’s zero.
• Subscription Pricing: A gym charges members a monthly fee for unlimited access rather than a per-visit charge.
• Decoy Pricing: A magazine offers three subscription options, with the middle option strategically priced to make the most expensive option seem more attractive.
• High-Low Pricing: A fashion retailer regularly prices items high but frequently offers sales, creating a sense of urgency among shoppers.
• Hourly Pricing: A consultancy charges clients based on the number of hours worked on a project.
• Performance-Based Pricing: An advertising agency charges clients based on the results achieved, such as the number of leads generated.
• Competitive Pricing: An online bookstore sets its prices based on what major competitors are charging for the same books.
• Economy Pricing: A no-frills airline offers basic services at a low price, charging extra for amenities like checked baggage or in-flight meals.

Overview

Time to Value (TTV) is a business concept that refers to the period it takes for a customer to realize the value or benefit from a product, service, or solution after its acquisition. In other words, it’s the time between when a customer makes an investment (in terms of money, time, or resources) and when they start seeing returns or benefits from that investment.

Here’s why Time to Value is important in a business context:

1. Customer Satisfaction: A shorter TTV can lead to increased customer satisfaction. When customers quickly see the benefits of their investment, they are more likely to be satisfied with their purchase and have a positive perception of the product or service.
2. Competitive Advantage: In industries where products or services are similar, a shorter TTV can be a differentiator. Companies that can deliver value faster than their competitors may have an edge in the market.
3. Customer Retention: Customers who realize value quickly are less likely to churn or switch to a competitor. They are more likely to stick with a product or service that provides rapid benefits.
4. Referrals and Word of Mouth: Satisfied customers who see quick returns on their investments are more likely to recommend the product or service to others, leading to organic growth for the business.
5. Financial Health: For businesses, especially those with a subscription model, a shorter TTV means that customers start seeing benefits before their next payment cycle. This can lead to improved cash flow and reduced churn.
6. Resource Optimization: Understanding and optimizing TTV can help businesses allocate resources more efficiently. For instance, if a particular feature is slowing down TTV, resources can be redirected to improve or replace that feature.
7. Feedback Loop: A shorter TTV allows for quicker feedback from customers. This can help businesses iterate on their offerings and make improvements based on real-world usage.
8. Trust Building: Delivering value promptly can help in building trust with the customers. When customers see that a business delivers on its promises quickly, they are more likely to trust that business in future interactions.

Time to Value is a critical metric for businesses as it directly impacts customer satisfaction, retention, and the overall success of a product or service in the market. By focusing on reducing TTV, businesses can enhance their customer experience and drive growth.

Marketing with TTV

Formulating a marketing campaign around Time to Value (TtV) involves highlighting the speed and efficiency with which customers can derive value from a product or service. The campaign would emphasize the immediate benefits and quick results that customers can expect. Here’s a step-by-step approach to creating such a campaign:

1. Identify the TTV: Before you can market it, you need to understand and quantify the TTV for your product or service. How quickly do customers typically see results? Gather data and testimonials if possible.
2. Target Audience Segmentation: Identify the segment of your audience that values quick results. This could be businesses in fast-paced industries, consumers looking for immediate solutions, or any other group that prioritizes speed and efficiency.
3. Craft a Compelling Message: Your core message should revolve around the quick benefits your product or service offers. Phrases like “instant results,” “see benefits in just days,” or “immediate value” can be effective.
4. Use Real-world Examples and Testimonials: Showcase real customers who have experienced rapid value from your offering. Their stories can make your claims more credible.
5. Visual Representation: Use graphics, charts, or animations to visually represent how quickly customers can achieve value compared to competitors or traditional methods.
6. Offer Guarantees: If you’re confident in your TTV, consider offering guarantees or trials. For instance, “Experience the benefits in 7 days or your money back.”
7. Educational Content: Create blog posts, videos, or infographics that educate your audience about the importance of TtV and how your solution delivers it.
8. Leverage Social Proof: Use reviews, ratings, and testimonials on social media and your website to showcase the quick value customers have derived.
9. Engage Influencers: Partner with industry influencers who can vouch for the rapid value of your product or service.
10. Retargeting Campaigns: For potential customers who’ve shown interest but haven’t converted, use retargeting ads emphasizing TTV to bring them back.
11. Monitor and Optimize: As with any marketing campaign, monitor your results. Use analytics to see which messages and channels are most effective in promoting TTV and adjust accordingly.
12. Internal Training: Ensure that your sales and customer service teams understand the TTV concept and can communicate it effectively to potential customers.
13. Promotions and Offers: Consider offering limited-time promotions that further emphasize the quick value, such as “Sign up today and see results by the end of the week!”

By focusing on TTV in your marketing campaign, you’re addressing a primary concern for many customers: how quickly they can see a return on their investment. This approach can be especially effective in competitive markets where products or services are similar, and TTV can be a key differentiator.

Real World Example

These examples demonstrate that TTV can vary widely based on the industry and the specific product or service, but the underlying principle remains the same: it’s about how quickly customers or users can derive value from their investment. Here are a dozen real-world examples of Time to Value (TTV) across various industries:

1. Software as a Service (SaaS): A company offers a cloud-based project management tool. The TTV is the time it takes for a new user to set up their first project and start seeing the benefits of organized task management.
2. E-commerce: A customer orders a DIY furniture piece online. The TTV is the time from placing the order to assembling and using the furniture.
3. Banking: A customer opens a new bank account with online banking features. The TTV is the time it takes for the customer to set up their online account, make their first transaction, and experience the convenience of online banking.
4. Subscription Boxes: A user subscribes to a monthly gourmet food box. The TTV is the time from subscription to receiving and enjoying the first box of curated foods.
5. Fitness: A person joins a gym to lose weight. The TTV is the time from joining the gym to noticing the first signs of weight loss or improved fitness.
6. Education: A student enrolls in an online course to learn digital marketing. The TTV is the time from enrollment to applying the first learned concept in a real-world scenario.
7. Automotive: A customer buys a new car with advanced safety features. The TTV is the time from purchase to the first instance where the safety features actively assist or protect the driver.
8. Telecommunications: A user switches to a new mobile carrier for better network coverage. The TTV is the time from switching to experiencing the first clear call or faster data speeds in previously problematic areas.
9. Healthcare: A patient starts using a new health monitoring app. The TTV is the time from downloading the app to receiving the first set of insights or recommendations about their health.
10. Real Estate: A business rents a co-working space. The TTV is the time from signing the lease to the business operating smoothly in the new environment and experiencing the benefits of the shared amenities.
11. Agriculture: A farmer starts using a new type of organic fertilizer. The TTV is the time from the first application to observing healthier crops or increased yield.
12. Entertainment: A user subscribes to a streaming service. The TTV is the time from subscription to discovering and enjoying their first show or movie on the platform.

Business development is a multifaceted discipline that involves identifying and pursuing opportunities to grow a business. It’s a combination of strategic analysis, marketing, and sales, and its primary goal is to grow a business and increase its profitability.

Why is Business Development Important?

1. Growth and Expansion: Business development helps companies identify new market opportunities and expand their reach. This could be in the form of entering new geographical markets, targeting new customer segments, or launching new products or services.
2. Building Valuable Relationships: Business development professionals often engage in partnership negotiations, joint ventures, and alliance building. These relationships can provide a company with new sales channels, increased market presence, or access to essential resources.
3. Competitive Advantage: By staying ahead of industry trends and continuously innovating, businesses can maintain or even establish a competitive edge. Business development plays a crucial role in this by identifying and acting on these trends and opportunities.
4. Risk Management: Diversifying products, services, or markets can help a company mitigate risks. If one product or market faces challenges, the company can rely on others to maintain stability.
5. Long-term Value Creation: Business development isn’t just about quick wins. It’s about creating sustainable growth. By focusing on long-term strategies and building strong relationships, companies can ensure they remain profitable and relevant in the long run.

Critical Parts of the Business Development Process:

1. Research and Analysis: Before pursuing any opportunity, it’s essential to understand the market, competitors, and customer needs. This phase involves gathering and analyzing data to make informed decisions.
2. Strategy Development: Based on the research, companies formulate a strategy. This could involve deciding which markets to enter, which products to launch, or which partnerships to pursue.
3. Sales and Marketing Alignment: Business development often requires the collaboration of both the sales and marketing teams. They need to work together to identify potential leads, nurture them, and convert them into paying customers.
4. Networking: Building and maintaining relationships is at the heart of business development. This could involve attending industry events, joining professional organizations, or simply reaching out to potential partners or clients.
5. Negotiation: Once an opportunity is identified, business development professionals often need to negotiate terms, prices, or partnerships. This requires a deep understanding of both the company’s needs and the needs of the other party.
6. Implementation: After the negotiations, the next step is to implement the strategy. This could involve launching a new product, entering a new market, or starting a partnership.
7. Review and Refinement: The business development process doesn’t end once a strategy is implemented. It’s essential to continuously monitor results, gather feedback, and refine the approach as necessary.

In summary, business development is crucial for any company looking to grow, innovate, and stay competitive. It involves a combination of research, strategy, relationship-building, and execution, all aimed at increasing profitability and long-term value.

Improving Business Development

At its essence, business is an endless cycle of investments and deliverables, risk and renewal, profit and loss, where success is created by mastering the fundamentals, re-allocating capital at scale, and adjusting to market changes. The following areas of analysis and set of questions provide a blueprint for better business development. It’s not a one time event, it’s a commitment.

FUNDAMENTALS
What do you sell?
What are your revenues? ($)
What does it cost to make? ($)
What are the overhead costs? ($)
What does an average employee earn? ($)
What is the total marketing budget? ($)
How often is equipment needed/bought?
How much debt does the business have? ($)
What is your total annual profit? ($)
What is the business’s gross margins? (%)
What is the business’s return on capital? (%)
What is the business’s 5 year growth rate (%)

OPERATIONS
What is the mission of the business?
How much time is spent daily on that goal?
How many hours a week do you work?
If you don’t show up on day, what happens?
Will the business help you achieve your goals?
What is your long-term plan for the business?
What are the high impact areas you focus on?
What are 5 questions you ask every client?
What are policies and procedures for operations?
How quickly can the business actually grow?
What are the requirements for each business area?
Do your employees perform their jobs consistently?
Would you say you’re proactive or reactive?
What does a typical meeting look like for you?
When you delegate tasks, how are they handled?

SALES
How many active clients do you have?
How many “dream” clients do you have?
What is the average profit from a new client?
What is the lifetime value of an average client?
What is your best source of new business?
What is the average transaction size?
How would you describe the sales cycle?
How would you describe your sales force?
How do you compensate your sales team?
What does a “top producer” earn monthly?
What is the hiring process for sales employees?
What is your sales pitch/presentation?
How many up sell items are available?
Percentage of buyers that cancel orders?
How does your customer service support sales?

MARKETING
What is your target market?
What is your niche your industry?
Who are your best buyers?
What is your competitive advantage?
What is the core story delivered to prospects?
Where do you advertise product/services?
Do you have a mobile responsive website?
What is your social engagement strategy?
What is your marketing process?
What is the conversion rate on ads?
How loyal are your customers?
Why do customers buy from you?
How do you use PR/media?