📚 WEEK 2: BUSINESS MODELS — UNDERSTAND HOW MONEY MOVES
It was 6:20 a.m. in Lagos.
Emeka sat in front of his notebook, looking at everything he had learnt so far.
PROBLEM → CUSTOMER → VALUE → BUSINESS MODEL → LEVERAGE
Then he asked himself a new question:
“What exactly am I selling?”
The answer looked simple.
“Product, na.”
But Emeka wasn't satisfied.
He had started noticing that businesses don't all make money in the same way.
Some sell products.
Some sell services.
Some build platforms that connect people.
And some businesses combine all three.
📦 PRODUCT
A product is something you create, source or package and offer to customers in exchange for money.
Think about:
• Clothes
• Food
• Phones
• Shoes
• Furniture
• Digital products
• Beauty products
For example, Emeka could buy phone accessories from a supplier and sell them to customers.
But simply having the product does not automatically make it a good business.
He still needs to understand:
WHO WILL BUY IT?
WHY WILL THEY BUY IT?
HOW MUCH WILL THEY PAY?
WHAT DOES IT COST TO DELIVER?
WHAT WILL REMAIN AFTER ALL COSTS?
🛠️ SERVICE
A service is value you provide through an activity, skill, expertise or experience.
Think about:
• Hairdressing
• Tailoring
• Catering
• Photography
• Consulting
• Repairs
• Cleaning
• Graphic design
A barber, for example, may not be selling a physical product.
The customer is paying for the service and value provided.
And just like a product business, the owner needs to understand the customer, pricing, costs, quality and delivery.
🌐 PLATFORM
Then Emeka discovers something even more interesting.
A platform can create value by connecting different groups of people.
Think about a platform that connects:
BUYERS ↔ SELLERS
or
CUSTOMERS ↔ SERVICE PROVIDERS
The platform may not personally produce everything being exchanged.
Instead, it creates the environment, tools or infrastructure that helps the transaction happen.
That can be a very different business model.
🧠 SAME CUSTOMER NEED — DIFFERENT BUSINESS MODEL
Emeka considers food.
One person may cook food and sell directly to customers.
Another may provide catering services for events.
Another may build a platform that connects customers with different food vendors.
Same broad industry.
Different:
VALUE → DELIVERY → REVENUE → COST STRUCTURE → BUSINESS MODEL
That's why simply saying:
“I want to sell food.”
is not enough.
You need to understand HOW THE BUSINESS WILL WORK.
🔍 ASK THESE QUESTIONS BEFORE YOU START
Before launching a business, ask:
1️⃣ WHAT AM I OFFERING?
Product, service, platform—or a combination?
2️⃣ WHO IS THE CUSTOMER?
Who exactly has the need?
3️⃣ WHAT VALUE AM I PROVIDING?
What problem am I helping them solve?
4️⃣ HOW WILL I DELIVER THE VALUE?
Physical location? Online? Delivery? Team? Platform?
5️⃣ HOW WILL MONEY COME IN?
One-time payment? Repeat purchases? Subscription? Commission? Service fees?
6️⃣ WHAT WILL IT COST ME?
Don't forget the costs involved in producing and delivering the value.
7️⃣ CAN THIS MODEL GROW?
Can you serve more customers without costs and complexity increasing uncontrollably?
💡 EMeka'S NEW UNDERSTANDING
Emeka writes three words in his notebook:
PRODUCT
SERVICE
PLATFORM
Then underneath:
“DON'T JUST ASK WHAT I AM SELLING. ASK HOW THE VALUE MOVES.”
Now he understands why two businesses can operate in the same industry and still have completely different results.
The difference may not be the product.
It may be the business model behind the product.
🎯 DAY 11 BUSINESS CHALLENGE
Think about one business you would like to start.
Write down:
WHAT AM I SELLING?
Then choose:
📦 PRODUCT
🛠️ SERVICE
🌐 PLATFORM
🔄 OR A COMBINATION
Now answer:
WHO PAYS ME?
WHAT ARE THEY PAYING FOR?
HOW DO I DELIVER THE VALUE?
HOW OFTEN CAN THEY BUY?
WHAT DOES IT COST ME TO SERVE THEM?
HOW CAN THE BUSINESS GROW?
If you cannot clearly answer these questions, you may need to understand the business model better before spending your capital.
🔥 REMEMBER THIS:
PRODUCT ≠ BUSINESS MODEL
What you sell is important.
But how you create value, deliver value, collect revenue, control costs and make the model repeatable is what makes the business model work.
KNOW WHAT YOU SELL.
KNOW WHO PAYS.
KNOW HOW THE MONEY MOVES.
📌 30-DAY JOURNEY
DAY 1: Learn Before You Spend
DAY 2: Business No Be Just Buy & Sell
DAY 3: Your Problem Fit Become Your Business
DAY 4: Start With the Customer
DAY 5: Sales No Be Profit
DAY 6: Know Your Numbers
DAY 7: Don't Just Work Hard — Work Smart
DAY 8: Understand Your Business Model
DAY 9: Time for Money — The Trap Many People Don't See
DAY 10: Leverage — Do More Without Doing Everything Yourself
DAY 11: Product, Service or Platform — What Are You Really Selling?
🔜 TOMORROW — DAY 12
SCALABILITY — CAN YOUR BUSINESS SERVE MORE PEOPLE WITHOUT BREAKING DOWN?
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