three important business model lessons- mistakes millionaires make
TRANSCRIPT
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3 IMPORTANT
TRANSFORM
business model
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to
YOUR
BUSINESS
changes
Excerpts from Mistakes Millionaires Make, by Harry Clark
Take the Entrepreneurial Risk Assessment at: www.pathwaypartnersllc.com
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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
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BUT I LOST
EVERYTHING
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NO
RESOURCES
I realized that there are
to help entrepreneurs avoid
common mistakes
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ENTREPENEURS
That lead me to interview
30
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CRASHED
that
spectacularly
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CLIMBED
and
back up
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SHARE
I want to
what I discovered
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3 IMPORTANT
TRANSFORM
business model
Photo via kcustomables.com
to
YOUR
BUSINESS
changes
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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
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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
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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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Photo via Deposit Photos
DIVERSIFICATION
Change #2
REVENUE
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The other strategic move
industry
geography
client
made by Bob was an
INTENTIONAL
MIX OF
REVENUE
DIVERSITY
He diversified by
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This has helped
create stability and predictability
necessary to plan and manage
his business carefully.
Photo via Shutterstock
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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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Photo via Flickr
Working with the government is a
DOUBLE
EDGED SWORD
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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
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Innovation is
DIRECTLY PROPORTIONAL
to risk
when government is concerned
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Learn more by reading my up-coming book
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Or by taking the
Entrepreneurial Risk Assessment Survey at
http://pathwaypartnersllc.com/
Or by subscribing
And remember: to my blog
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