π WEEK 2: BUSINESS MODELS β UNDERSTAND HOW MONEY MOVES
Yesterday, we learnt about SCALABILITY.
Today, we are taking another important step:
CAN YOUR PRODUCT REACH ENOUGH CUSTOMERS?
Many people focus heavily on producing a good product.
They think:
> βIf my product is good, customers will come.β
But business no always work like that.
You can have a very good product sitting in your shop, warehouse, kitchen or phone.
If customers don't know about it, can't find it, or can't easily buy it, the product may still struggle to generate enough revenue.
That brings us to DISTRIBUTION.
π PRODUCTION
Production is about creating the product or service.
For example:
β’ A food seller prepares meals.
β’ A tailor makes clothes.
β’ A baker produces cakes.
β’ A manufacturer produces goods.
β’ A digital creator produces digital products.
Production creates the value.
But something else must happen.
The value must reach the customer.
π’ DISTRIBUTION
Distribution is about how your product or service gets to the customer.
It answers questions like:
Where will customers find you?
How will they place orders?
How will they receive the product?
How can you reach more customers?
Distribution can happen through:
β’ Physical shops
β’ Sales representatives
β’ Social media
β’ Websites
β’ Online marketplaces
β’ Delivery networks
β’ Retailers
β’ Wholesalers
β’ Agents
β’ Partnerships
So think about it this way:
PRODUCTION = MAKE THE VALUE
DISTRIBUTION = MOVE THE VALUE TO THE CUSTOMER
π§ LET'S USE A SIMPLE EXAMPLE
Imagine two people bake cakes.
π BAKER A
Makes excellent cakes.
But only sells to people who walk into her shop.
She doesn't advertise much.
She has no delivery arrangement.
She doesn't take online orders.
Her cakes are good, but her reach is limited.
π BAKER B
Also makes excellent cakes.
But she has:
π± Social media presence
π² Online ordering
π Delivery partners
π€ Corporate relationships
π Event partnerships
π₯ Referral customers
Her production may be similar to Baker A.
But her distribution is wider.
She has created more ways for customers to discover, order and receive her products.
This is why:
GOOD PRODUCT β AUTOMATICALLY GOOD SALES
You need both VALUE and REACH.
π PRODUCTION + DISTRIBUTION
Think about the journey:
IDEA β PRODUCTION β DISTRIBUTION β CUSTOMER β PAYMENT
If production is strong but distribution is weak, the product may struggle to reach customers.
If distribution is strong but the product has little value, customers may not return.
A strong business needs to think about both sides.
π¦ WHY DISTRIBUTION MATTERS
Imagine producing:
10 PRODUCTS
and finding only 5 customers.
Now imagine your production can increase to:
100 PRODUCTS
but your distribution system can only reach 20 customers.
You have increased production.
But your customer reach has not increased enough.
That is why simply producing more is not always the answer.
Sometimes the real problem is:
βHOW DO I REACH MORE CUSTOMERS?β
π ASK YOURSELF
Before increasing production, ask:
1οΈβ£ WHO ARE MY CUSTOMERS?
Do I clearly know who I want to reach?
2οΈβ£ WHERE DO THEY FIND PRODUCTS LIKE MINE?
Physical location? Social media? Online? Through referrals?
3οΈβ£ HOW WILL THEY DISCOVER ME?
How will they know my business exists?
4οΈβ£ HOW WILL THEY ORDER?
Can customers easily place an order?
5οΈβ£ HOW WILL THEY RECEIVE THE VALUE?
Pickup? Delivery? Digital access? Through a service?
6οΈβ£ CAN I REACH MORE CUSTOMERS?
What distribution channels can I add?
7οΈβ£ CAN MY DISTRIBUTION GROW WITH MY PRODUCTION?
If I produce more, can I actually sell and deliver more?
π― DAY 13 BUSINESS CHALLENGE
Think about one product or service you want to offer.
Complete this:
MY PRODUCT/SERVICE: __________
MY TARGET CUSTOMER: __________
WHERE THEY ARE: __________
HOW THEY WILL DISCOVER ME: __________
HOW THEY WILL ORDER: __________
HOW I WILL DELIVER: __________
MY CURRENT DISTRIBUTION CHANNELS: __________
ONE NEW CHANNEL I CAN TEST: __________
Then ask yourself:
> βAm I spending all my energy making the product while ignoring how the product will reach the customer?β
That's an important business question.
π₯ REMEMBER
PRODUCTION CREATES VALUE.
DISTRIBUTION MOVES VALUE.
A great product that cannot reach customers may struggle.
Don't only ask:
βCAN I MAKE IT?β
Also ask:
βCAN I REACH THE PEOPLE WHO NEED IT?β
Because business is not only about what you produce.
It is also about how effectively you connect that value to the customer.
π 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 β Work Smart
DAY 8: Understand Your Business Model
DAY 9: Time for Money β The Trap Many People Don't See
DAY 10: Leverage β Do More Without Doing Everything Yourself
DAY 11: Product, Service or Platform β What Are You Really Selling?
DAY 12: Scalability β Can Your Business Serve More People Without Breaking Down?
DAY 13: Distribution vs Production β Why Reaching Customers Can Matter As Much As Making the Product!
π TOMORROW β DAY 14
BUSINESS MODEL β HOW DO ALL THESE PARTS WORK TOGETHER?
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