Tag Archives: companies

Business Models

On the other hand, the model of software products also has its disadvantages: * significant investment to carry out the initial development, because until there is no product, there is nothing to sell and start having revenues, this investment is given not only time but also in silver * much risk because until you actually do not start to be successful, which could carry no less than a year, there is no certainty that it can recover investment and start being profitable, and when I certainly think I’m wrong, what happens is that there is less uncertainty, less risk, is clear that it would be silly to think that there are so many companies dedicated to custom development, has not an important advantage for these, the big advantage is that in the short term are profitable, say they are profitable almost from day zero, do not require a large investment with long-term risk, but the growth starts to get complicated by the structure is formed, which must be maintained at the same time remain competitive, then the day to day business starts to distance himself more and more the ideal that one had when he started, getting to the point where it is not entirely pleasant. In the product development model that is sold to customers are not man-hours to develop their ideas, which is sold to the customer is the idea embodied in a product, it has a high added value is just to have a high return and not depend on the value of man-hour to compete or be profitable, that we also leads to a business model where you can look a lot more people who participate in it and form a working group very interesting, highly capable and high-quality, I would say that is a circle “happy” to start clear that this circle have to work hard. A reflection on changes in the pattern: * an established business model was only his development as is a company that when you want to change that model will find that you can not, by the structure formed and the need to keep , a change of model is very complicated, * a company based on a model of product development, which eventually after a while investment needs of self-financing, and development performed by some scheme to measure, is a company can come and go quickly from this model temporary, if you have clear objectives, a temporary change of model is simple; conclude by an analogy that was very important in this decision: * custom development is well under the hand with the idea of an exporter of raw materials, in our case very good raw material, * the development of products, as a model country where raw materials are used to export products with high added value, it is clear that these countries buy raw materials to the former, these in turn would buy the finished products, and is more than clear who ends up losing with this. . . 1 +1 = 10. And I say: “the truth that if a company I do, I think of a model country instead of exporting wool sweaters do.” This is just a brief summary of what today is my vision of why we decided to carry forward this business model, I hope they have been interesting and I can contribute their comments to evolve these ideas.