'Profit model' is the king of lighting industry development

Judging from the current development trend, the profit model is a hot term in the whole financial and economic circles. Not only the financial and economic circles, but also the bosses who do business and the wage earners who want to do business are all talking about the profit model. Especially in the past two years, the popularity of Weibo and WeChat and the popularity of two-dimensional codes mean the rise of new profit models and the decline of old profit models. What is the profit model? The profit model is so hot, as a fan of the consulting industry, I am naturally concerned, so I used Baidu to search, and a lot of definitions about profit model came out, but I thought, many explanations have problems, either irrelevant, or looking around to talk about him, or too detailed to refine the key points, or highly summarized. All in all. The recommendations of these experts and scholars are summed up in the following seven aspects. It's my first creation (If there is any similarity, it is purely coincidental). First of all, the core products of your profit model should have broad market capacity and sustainable development prospects. The market capacity is too small, and the development space of the project is naturally small. Market development prospects are small (Such as sunset industry, such as traditional lighting), The growth space of the project must be small. Second, the product (Or service)The core of the competition is very strong. Your core products or services, core competitiveness is the first, or traditional products (Or service) The upgraded version of, in theory, has an unparalleled competitive advantage. Thirdly, the profitability of the project is very strong (At least theoretical calculations). The profitability is too weak to keep the project alive and provide fresh blood and cash flow for the team, so it is naturally impossible to expand production or scale. Fourth, there must be a scientific mechanism for the distribution of benefits. Many profit models that are well calculated theoretically, because of the unreasonable benefit distribution mechanism, lead to the loss and infighting of the core backbone, and because of the lack of effective incentive mechanism, the cohesion of the team decreases, the project is also in a half-dead state. At the same time, the loss of core members has virtually created many competitors for themselves. Fifth, it must be able to copy quickly. If the operating mechanism of the project cannot be quickly replicated, it will not be able to grow rapidly, and naturally it will not be able to become bigger and stronger. For example, if a lighting store can only become bigger and stronger in the form of a single store, or even become a regional brand, it is not a profit model, because he cannot copy multiple identical stores in other regions. Whether it can be copied depends to a large extent on whether there is a standard process and operation method. And core human resources to promote the implementation of these standards. Sixth, we must be able to create barriers to competition. In this way, we can not be afraid of the imitation and transcendence of competitors. However, the source of competitiveness is not limited to products. In addition to products, there are soft things such as financing platforms, incentive mechanisms, and service standards. Seventh, in theory, it can attract venture capital or other financing platforms. Because the profit model has the above six competitive advantages, it is a matter of course to attract all kinds of venture capital or listing. Using the seven criteria of the profit model (Mainly the first six) Measurement, we will easily find out which are profit models and which are not. Such as home appliance chain channels, such as Ma Yun's Ali department, such as KFC, McDonald's and so on. These are mature and successful profit models, which fully conform to the seven definitions of profit models. However, some of them are theoretical profit models, such as the hot O2O model now, and it is inevitable that some large enterprises will be born in the future. There are also some profit models that are theoretically successful, but in practice, they are not ideal. For example, Wu Dalang sesame cake, which has been popular for a while, sheng binzi does not conform to the definition of profit model in terms of manufacturing competition barriers, profit distribution issues and core competitiveness. Some large enterprises in the lighting industry, such as NVC and op, naturally calculate the profit model, but the markets faced by these two enterprises are rapidly changing. For them, whether we can seize the broad market capacity and development prospects of LED is an opportunity and a challenge. What is the use of the profit model? Jiuzheng building materials network Xiaobian can only say that he provides us with an effective thinking framework. When we start our own business or are about to start a business, we think more about our own projects. Or, as a bystander, judging other people's projects is more scientific.