A closer look at the dynamics of value creation
The fundamental question every entrepreneur needs to answer is: how will I make money in this business? This blog post first takes a closer look at the fundamental ingredients every company needs in order to create value, and how these ingredients combine to create a sustainable business. It then examines how you can track the financial success of your business.
This is the ninth post in a series of posts in which I discuss how to use prototype business models using system dynamics. To illustrate the process, we are building a simple, but complete model of a generic business – the generic business model prototype – as we go along. The objective of the generic business model prototype is twofold: to help you learn more about business AND to help you learn more about how to prototype a business using system dynamics. A list of all posts in the series can be accessed here, you can find an introduction to the business model prototype itself here.