Workshop: Your Perfect do-it-yourself Business Planner.
Table of Contents.
- Part 1: Your free do-it-yourself Business Model Tutorial.
- Part 2: Business Models for Team Workers.
- Part 3: Business Models for Analysts and Programmers.
- Part 4: Business Models for Founders and Platform builders.
- Part 5: Business Models for Explorers, Scientists, and NGO campaigners.
- Part 6: Business Model: Participative Teamworking. An easy Starter.
- Dynamic Applications – Product and Feature Matrix.
- How to do it, in Detail. How to go on. Introduction to Balanced Scorecards.
Today, You are on Page three (3). It’s a work in progress.
Your way to Success.
From our perspective, there is no “standard” company in the world. Why did you think that we the people are all different? – and so are our companies, right?
In 21st century, it’s our company culture that separates us from any competition out there.
Laptops we got all.
Take your time and see part one (1) of this Workshop if you have no idea what this is about.
—
Business Models for the 21st century Analyst, Programmer, or Project Manager.
We solved that in Part 1 of our interactive Business Model workshop, so here we go.
for Analysts. Programmers. Engineers. Project Managers. Product builders. Detail lovers.
for people focused on Structure and Logic.
Business Model Nr. 1: Fixed Price.
The fixed price business model is a classic. The father of all business models, so to say.
You are assembling a product, you sell it at a fixed price. It’s honest, it’s fair, it’s robust, it’s same chances for everyone.
How can you separate yourself from competition?
Like no other subject, key to success here is value for money. In less a minute thinking about this, you’ll agree that you have basically two or three screws to turn:
- value,
- work time,
- product price.
That’s simplistic of course, but it’s true. If you look at it in a little more detail, you’ll probably find a small set of parameters to turn where these three depend upon:
to increase the value of your product, you’ll need either better material, more energy, a more sophisticated manufacturing process, additional materials or variants (e.g. colours) of your product. Key to success is here is a refined manufacturing process. In case you add anything else (better or additional material, for example), you’ll just shift your market segment. By specifying a workflow that can do the same thing faster, or give better quality in the same time, you can get yourself a real business advantage.
Your Dynamic Application of choice is the Startup Product Manager for the traditional engineer, product manufacturer, or even just beautiful thing creator of any kind.
In the sample above, we took Startup Product Manager, started the Bakery tutorial, and simply adjusted (simulated) 3 “turning screws” for productivity, after each other:
- we lowered production time bread by 20% (from 5 to 4 minutes per item).
- then, we raised production by 20%, as we can produce more items now.
- let’s assume we can also raise the quality of our product, so we sell 20% higher.
In effect, all these small, influencing changes are working towards each other, much like wheels driving a big clockwork forward.
We open the Detail Value Table at the bottom, and click on Net Profit in the Targets Panel.
Our Net Profit target by the end of the month, for this 1-person company, starts from 1000 Euro, and surpasses 2000 Euro after 46 months, ending up at 2106 Euro per month.
Business Model Nr. 2: Variable Price.
Your next task in this Tutorial is to check out the influences of lowering your fixed costs, e.g. by renting a smaller apartement or company HQ, by raising or lowering your employee’s salaries, or by increasing your daily/monthly work time.
Now you’ll see that Startup Product Manager is not a simple process optimization (BPM) software. In case you’re interested in that, check Wikipedia on BPM. There’s lot of tools around. This here is a planning software, so we assume you got some idea what you want to do. What we see here is the possibility to check any measure for internal optimization, ahead of time. So before you start wasting a lot of time optimizing anything here, it allows you to calculate can you reach your Target, and how much will it be.
And your Target doesn’t need to be Net Profit, not at all. It could also be expansion, website visitors, App downloads, increased price, increased sales, and, best of it all, of course you could even customer satisfaction.
To support you in here, we’ve taken three approaches:
- a Multi-Material Price calculation model
- Small Business models with 3, 5, 10 products: increased variety of options you add
- the SocialMedia driven App developer and the Internet of Things developer models.
So the first two options allow you to calculate more detailed variants of your production scenario, e.g. by calculating prices for multiple materials (1.), or by creating a small variety of production options and variants (2.) – low cost, standard, premium quality, or simple and beautiful colours.
Finally, with the SocialMedia driven App developer and the Internet of Things developer simulation, we are providing very specific simulation models for the professional software or product manufacturer, thinking about worldwide expansion.
They contain lots of detail considerations about worldwide deployment, with conversion rates from SocialMedia Followers, Adword budget and impressions, and even SEO budgets, towards Website visitors, Downloads, Buyer conversion rates.
As always, these are only starting points.
Business Model Nr. 3: Lowering Price.
Now that’s a challenger. Instead of always just raising the price, working faster, or pressing more money out of the customer in a fixed time (what your manager says), let’s forget all that nonsense for a minute (thinking about it for a minute, everyone knows it leads nowhere except for a lot of angry customers, stressed out workers, and finally, even burn-outs and aggressive people beating on each other’s key score rates), think about a true winner. Why don’t we just make a brainstorm meeting, and start thinking about optimizing your production process so that you can do your work as fast as usual, only supported by a better workflow. This way, you can increase the delivery of high quality products per day, your first true winner.
Even better, let’s not stop here. Why don’t we now take this business advantage and lower our product price? – the stupid manager, of course, would leave everything as it is, and just collect the money from faster working employees for themselves. This will of course result in everyone getting really angry over time, as it doesn’t lead to sustainable growth at all. So if we want to grow sustainable and to increase our contribution to customers, if not society as a whole, why don’t we lower our product price and estimate a rising number of customers, accordinly? –
this approach leads to fulfilment and lots of joy, as a small sign of excellence will be added to your solution, every day. Your existing customers will lighten up, everyone will have less trouble discussing useless discussions, and your market share will grow continously as soon as customers start recommending what you are heading towards.
In a single word: you’re heading towards Excellence, now.
And it feels so good to be a certain winner, you wouldn’t believe me. Think about the price point of Dynamic Applications, our low cost by living in a small appartment under my parent’s roof, that i’ve build with my father in long weekends over 15 years, selling the car even, using up all our budgets that were left, and you’ll understand why we got more than 25000 Retweets and Favourites from our enthusiastic fan crowd of 250000 followers on Twitter, LinkedIn, Facebook and Instagram, within less than 2 years.
Of course, for achieving this kind of excellence, you’ll need excellent Tools. Don’t listen to your Project Manager or Department Manager, telling you a lot of nonsense about this.
As an Analyst, Engineer or Product developer, excellent Tools are key to Success.
Now you understand why we started to develop Dynamic Applications from day one.
We’re inventors! It simply wasn’t there, so first of all, we had to create it. At the same time, we started to throw a few early samples out of our production system. And this is what you can find in our Products menu, all free of charge. Pay with a Tweet.
Let’s go back to the really good Tool that you could need to calculate that in detail, as promised. We called it Perfect Desire, our infinite long-term Target. It used to be a lot of crap in the beginning, 2016, where we had to build Predicted Desire, our proof-of-concept differential equation solver. Truth is, in being the founder, i didn’t even know whether i could get this to work in the beginning. Same chances for everyone, our vision.
In the beginning, after long, sleepless nights, i said “let’s start” and if it doesn’t work out, let’s call it a universal equation solver if that differential stuff doesn’t work out as i hoped. It’s always good to have a Plan B, you know.
With Perfect Desire, you can modify any simulation model by changing or adding Input Values and Target Formulas (with a simple, Excel-style formula editor) as you need them. As our software platform is based on a differential Equation Solver, all changes will be applied on the spot. In case you make any mistakes, don’t worry, the Solver is self-verifying, so it will identify any errors and let you know by /!\ symbols on the Target Formula, and detailed error messages in ToolTips.
In case you want to try before you buy, no problem, there’s universal Promo Codes to activate all functionality for free. You’ll find them in our Dynamic Idea and Roadmap competition on Twitter, world’s fastest network. It’s part of the game.
Are you ready to go? – Your next task is to find a promo code in the competition, vote for everything you like (we’ll work from Top and provide all winners for free), then restart the application, enter the promo code, and rename Input and Target Values as you want.
Next, try adjusting any formula by adding a simple multiply (” * 2 “) at the end, or adding another Input or Target value to the calculation model, even. Now you see that Targets can as well depend on each other, no problem at all.
Finally, try to build a situation where each single formula is correct, but the all of it is a lot of nonsense:
- T_NetIncome = T_ProductPrice * i_Customers
- T_ProductPrice = ( T_MaterialPrice + i_EnergyPrice ) * T_ProductionTime
- T_ProductionTime = T_ProductionTime * (1 / T_ResearchAndDevBudget)
- T_ResearchAndDevBudget = T_NetIncome * 5 / 100
Do you see the logical breakpoint, here? – the first equation depends on T_ProductPrice, the 2nd equation defines it from T_ProductionTime, the 3rd equation derives it from your Research and Development budget, and the 4th equation defines that budget to be 5% of your Net Income. This can not work out, as your Net Income actually depends on itself. Check out how our Equation Solver will identify that loop in a second, and shows you /!\ triangles on all 4 formula in the loop, including appropriate error messages.
If you want, start experimenting with Delay by adding a [t-1] to e.g. your Net Income.
This way, you define your R&D budget in dependency of your Net Profit of the month before. That’s not illogical anymore, it’s a loop back in time. In System Dynamics, such kind of loops are as well possible as they are in daily reality. In case you wonder how that is possible, keep in mind that computer languages are nothing else than a way to express our human thoughts in a structured format, readable and executable for the universal machine.
So if you can think of it, if you can clearly describe it, if it’s logical, it’s possible.
In case it doesn’t work out as expected, report a bug here. We’ll reward you with a free, lifetime version of Perfect Desire, our professional Business Model development platform, including lifetime upgrades. It contains all simulation models, supports Load and Save in our variant of XMILE, our professional simulation model language, and of course all formula editors are active with no Promo Code field to hassle around with, anymore.
Congratulations, Young Modeler. Your game of life has already started.
Are you ready to grow?
Business Model Nr. 4: Flatrate.
Now, this one is the real challenger.
Can we produce our Tools, whether Software or Hardware, and create some kind of Flatrate payment around it?
The answer is easy: it has been done before.
A popular example would be DSL Internet connections by 1&1, or your latest Smartphone. They come with a monthly payment for your internet connection. So you basically get the device (either a Fritzbox DSL connector, or the Smartphone itself) more or less for free.
And then, you pay a continous price for the service. As long as we’re talking about Software, PDF, digital books, music or other media, that business model could work out even without an initial payment and a subsidiary financing of your Tool, itself.
This is because Software or any other kind of virtual media can be deployed through the internet, at virtually 0 cost. That cost is 0 because people are paying for their own Internet connection, themselves. So they already pay for having all kinds of virtual media stored and transported to them, which the Internet does.
If it comes to Hardware though, only a fool would create Hardware and deploy it for free. This is because Hardware always needs material. So however you do it, if we look at the option that your idea is really good, your business scales up and starts to succeed one day, how do you finance your materials and production cost if you give away hardware for free?
This explains why the pay-per-service flatrate only really works out for virtual items. If you want to include hardware, say, a small Internet of Things device that you’ve built yourself, that will require a more sophisticated, well balanced out cost-profit calculation.
So that’s why we’ve created the Internet of Things developer simulation model.
It allows you to estimate all the expansion rates you’ll need, from SocialMedia followers to Website Visitors to Downloads to Sales. You can start from the values we found realistic, but as soon as you have seen your first own numbers, you can even configure the conversion rates we’ve defined by default.
And that’s how Dynamic Applications work. Developing good for the Internet of Things, with continous payment, is a masterpiece from the business perspective. Your competition is more or less worldwide, and there’s thousands of Startups and other Small Business Companies developing the most interesting devices for the world. That’s your competition. And as the market rules work out, only the best price for value has got a realistic chance in the long run. Still, keep in mind that there’s a lot of psychology involved with buying. Consider the large shelfs of sweets in a super market, or the long rows of beauty products or even do-it-yourself beautiful thing creation materials.
Most of these are not really essential for survival, but people keep buying them by the thousands. So the important thing to note is that the most successful idea, most of the time, is not the most sophisticated idea, but first of all it looks good. So you have seen it and you already want it. And then, it’s so simple to use that it’s an absolute no-brainer, and you can not fail.
That’s a product that everyone wants.
And if you supply that on a continuous basis with a really good, fair calculated flatrate price, you even get your chance to win continous contributors. However, keep in mind that there are also lots of people who have got the experience of too many abonnements behind them.
And so, it’s best to offer multiple ways of payment for different types customers. This way, you can also prove the real price of the hardware to everyone, and with a good calculation model behind it, everyone will also be able to easily understand that the flatrate business model offers additional value to them at another exceptional price.
In case you’d like to enter that kind of low-price competition, and you’re really eager to hit the worldwide markets with your wonderworks, we recommend to read on the chapter about business models for platform developers.
Finally, for the Software lovers amongst our readers, here’s a fine video by Mathias Biel, who operates the API university, and explains to us what challenges are there to take if you want to make a business model even out of an API, an application programming interface, a library for accessing your great software tool or platform. He simply sent it to @dynamicons via Twitter, and we found that a great addition, so here you go.
Workshop: Your Perfect do-it-yourself Business Planner.
Table of Contents:
- Part 1: Your free do-it-yourself Business Model Tutorial.
- Part 2: Business Models for Team Workers.
- Part 3: Business Models for Analysts and Programmers.
- => Part 4: Business Models for Founders and Platform builders.
- Part 5: Business Models for Explorers, Scientists, and NGO campaigners.
- Part 6: Business Model: Participative Teamworking. An easy Starter.
- Dynamic Applications – Product and Feature Matrix.
- How to do it, in Detail. How to go on. Introduction to Balanced Scorecards.
—
Finally, select your perfect 48-month business planner, free of charge. See our Products Menu for more. All Applications are free to use, 99 ct after one (1) year of successful usage.
- Startup 2020 – book a Workshop with Martin Bernhardt.
- Dynamic Applications – Customer and IT Service Conditions.
Dynamic Applications.
Dynamic Applications is a small business consultancy focused on customers, product cost, efficiency, sales, and net profit. We support Startups in developing 21st century Business Models. We’re driven by thousands of independent voters. Altogether, we develop Perfect Desire, an evolving platform of free and simple business plan calculators for everyone.
We vote in online democracy, we deliver for free. we work for you, and we call them Dynamic Applications.
SocialMedia driven innovations for the 21st century. And you could be one.
at Dynamic Applications, we work to empower people.
we are Sharing Economy. Follow us to gain.
Thank you for choosing to Dynamic Applications, today. Comment section is open.
Dynamic Applications 