Avoid business models based upon doing one simple thing a million times.
ADAGE
Better a Job Shop
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RESPONSE
Avoid business models based upon doing one simple thing a million times. Seek complex negotiated transactions rather than simple commodity pricing. Barriers to entry based upon complexity, knowledge, and experience are better than barriers based upon capital investment or manufacturing infrastructure— just ask the steel industry. Solve large-scale difficult problems several at a time rather than small-scale simple problems a million at a time. Business models based upon scale, volume, efficiency, and consolidation only work as long as the product or service moving through the model is in demand. Too often, financial engineers underestimate the importance of quality and innovation in keeping the model provisioned.
SCRIPTURE
Ecclesiastes 11:2 Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.
Proverbs 22:29 Do you see someone skilled in their work? They will serve before kings; they will not serve before officials of low rank.
QUESTIONS
How do the Scripture(s) apply to the business adage?
How does running a Christian enterprise introduce complexity?
This adage suggests complexity is a barrier to competition. How is it possible that running a Christian enterprise can be an example of complexity that acts as a barrier to competition?
Are there certain complex business models that may be more effectively managed by individuals who follow the Christian faith? Explain.
What are five examples of complex business models?
Jesus ran a very simple business model. What can we learn from that?
DOWNLOAD
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