Tag Archives: value creation

Building a company to make money

March 14th, 2010

There are three main models (when looking at the founders point of view):

  1. Build it as big as possible, expand the infrastructure/distribution/value factory, aim to make a little bit on each part in the factory.  Whole aim is around making it bigger than the founders.
  2. Keep it as lean as possible, focus on the small, deliver maximum value.  Aim here deliver tremendous value to make excessive profits.
  3. Build it fast to exit.  Little worries on profitability, reinvest to make profit (for founders) via exit.

Bonus Option
You are so remarkable you create a monopoly.  This adds extra profit in any option (probably mostly in the first option).

Just a few different thoughts/models on how to frame it in your mind.

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