8. Key Resources (Efficiency)

[Paul Terlemezian]

The most important assets required to make a business model work:

1. Physical
2. Intellectual
3. Human
4. Financial

These are needed to help our business:

• Create and offer a value proposition
• Reach markets
• Maintain customer segments
• Earn revenue

...and can vary depending upon the type of business model.

[Paul Terlemezian]

What do you need first - the revenue or the resources?

• This question gave birth (pun intended) to the "Chicken or Egg" debate.
• It is realized in sports when we realize that I have to take my foot off of first base in order to get to second base - and somehow I had to get to first base to start with!
• And at some point we knew we needed a car to get a job - but we needed the job to pay for the car

We need both - simultaneously - so we must:

• Commit to a goal (i.e. the amount of revenue attainable)
• Validate the goal by engaging with clients who benefit from our value proposition
• Achieve success (for the client) with our resources
• Generate sustainable cash flow
• Hedge the above with contingency plans and by-products that guarantee a worthwhile form of value creation

Unwillingness to commit to a goal will lead to failure.

What alternatives to committing to a goal have worked for you?