While the mainstream media glories the startup world and all the companies that are playing the valuation game, they neglect the actual impact and value delivered by entrepreneurs that are playing the value-add game. In this episode, I cover the core difference between the two worlds.
If this inspired you, please drop a 5-star review on Apple or Spotify.
What you will learn in this podcast?
What are the 6 types of business models?
What are the pros and cons of playing the valuation game?
What makes the value-add game long term and sustainable?
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109 replies to "Valuation Game vs Value-Add Game"
Valuation game vs Value add game
6 different types of business models
1. Manufacturing
2. Distribution
3. Services oriented
4. Franchise based
5. Aggregator based
6. Freedom business model ( knowledge and expertise and no employees)
Comparison
Roots will determine the fruits
Valuation games – scalable, platform based. User based.
Value add game – value is based on results of the customer.
Valuation game – scaling the business
Value add – based on long term relationship with the community
Valuation game – more pressure for payback, borrowing from others. And profitable
Value add – your profit investing back in business … And right mentors.
Valuation game – more glorified
Value add – not glorifying. This needs to be more glorified as they build the country for a better good
Valuation game – no freedom. Golden cage
Value add – freedom and niche fame no main streem game
Valuation game – sustaining might be difficult for a long time.
Value add – community feedback and vision from them and modify to make it better.. Higher change to sustain.
6 Types of Business Models are :-
1. Manufacturing Companies
2. Distribution
3. Services Oriented Business
4. Franchise Business
5. Agegrator based Business
6. Freedom Based Business
The valuation game is comprised of Angel Investors and Value added Business Models like Freedom Based Business Model.
#ILHfamily #ILHDeepLearner
Thanks, Sumesh, great points.
# ILH Deep Learner
Valuation Game VS Value – Add Game
There are 6 Bussiness Models
01 : Manufacturing
02 : Distribution
03 : Service based business
04 : Franchise based business
05 : Aggregator bussiness model
06 : Freedom bussiness model
On point, Firdous!
Thank you Siddharth really important
topic-
Biggest Takeaways-
Valuation Game but provide Value provided Products-
6 different types of business models
1. Manufacturing based Business
2. Distribution based Business
3. Services oriented- MSME, Traditional Business
4. Franchise based- Health Food- Reinvent any thing
5. Aggregator based- Technology based Company like Uber , Ola
6. Freedom business model ( knowledge and expertise and no employees)- Remote Based Business
Comparison between Valuation Game v/s Value added game-.
Roots will determine the fruits
Valuation games –For Startup Business scalable, platform based. User based.
Value add game – value is based on results of the customer.
Valuation game – scaling the business
Value add game –Value of results based on long term relationship with the community
Valuation game – more pressure for payback, borrowing from others. And profitable
Value add – your profit investing back in business … And right mentors.
Valuation game – Innovation more glorified
Value add – not glorifying. This needs to be more glorified as they build the country for a better good
Valuation game – no freedom. Golden cage
Value add – freedom and niche fame no main streem game
Valuation game – sustaining might be difficult for a long time.
Value add – community feedback and vision from them and modify to make it better.. Higher change to sustain.
Valuation game – maintaining is probably tough for a long term.
Value add – community remarks and vision from them and modify to make it better.. Higher change to preserve.
#ilhdeeplearner
#ilhfamily
Keep it up Debasmita
Thanks a ton, Debasmitha! More power to you! I’m glad you found this learning journey valuable! More to unfold 🙂
Thank you Siddharth and Parmvir , Siddharth for the appreciation I will definitely learn and explore more to deliver more value to the World .
More power to you, Debasmita!
Very valuable
Thank you.
Key takeaways:
6 types of business models are there:
1. Manufacturing Based Companies
2. Distribution Based Companies
3. Service Oriented Companies
4. Franchise Based Business (business in box – you don’t have to reinvent anything in it)
5. Aggregator Based Business (building technology and tools – business Based on what is the hottest thing right now)
6. Freedom Business Model
Valuation Game :-
1. Startup to build a product/ service which is platform-based, scalable, goes to mass market.
2. It tries to get number of users.
3. Comprised of angel-investor and capitalists. Capital used in marketing, technology, team and space.
4. Capitalists always think about exit strategy.
5. There is a pressure to make numbers work as capital comes from borrowing from capitalists.
6. These have no Freedom but achieve mainstream fame. Mainstream media doesn’t focus on value of tax paying etc.
7. Hetoromous to make sustainable and set on fame for long time.
Value Add Game :-
1. Platform-Based and scalable but based on digital product.
2. Value is based on the results of the customers.
3. Invest on marketing, technology, team, but no space required.
4. Built based on constant feedback from the community. There is no exit strategy here.
5. There is a pressure to make numbers work, but it is more a personal game. Here, reinvestment of profit is done in business.
6. Niche fame can be received. Adding value by paying tax can be done.
7. Aspiration is to build community, build community and get visions from community so that you can make product much better. Higher chance of success for organic growth based on feedback of community and building community on loyal customers.
#ILH Deep Learner
Awesome takeaways, Ananya. More power to you!
#ILH Deeplearner
# ILH Family
Thank you Sid for beautifully explaining 6 business models & clear distinction between valuation & value add game. Liked this million dollar statement ” Roots will determine the fruits”
6 types of business models
1. Manufacturing ( Need more manpower & infrastructure)
2. Distribution ( Need more manpower & infrastructure)
3. Services oriented ( provide services)
4. Franchise-based ( many factors involved like right location, space, etc)
5. Aggregator based
6. Freedom business model ( Freedom to do business, no office & employees)
Valuation games – platform-based. User-based game.
Value add game – Results based game.
Valuation game – Exit game
Value add – Long term community-based game.
Valuation game –Pressure game ( payback, borrowing etc)
Value add – More freedom,no pressure as no borrowing
Valuation game – Glorified by media
Value add – Required to be glorified because making a difference in the society.
Valuation game – Its like Golden cage
Value add – freedom gave with niche freedom.
Valuation game – Not sustainable
Value add – Changing people’s life
#ILH deep learner
# ILH Family
More power to you, Ganesh.
Valuation Game Vs Value Added game
Why do most people get allured start-up phase without understanding what goes in that space?
What are the 6 types of business models?
What are the pros and cons of playing the valuation game?
What makes the value-add game long-term and sustainable?
6 types of business models
• Manufacturing company
• Distribution Company
• Service oriented
• Franchise-based business
• Aggregator Business (Connect service provider and customer)
• Freedom Business Model (Provide Knowledge in the form of digital products)
The intent of the entrepreneur the root will determine the fruits. Is
Value add game the value that a particular business is based on the result of the customer.
Valuation Game is based on the user base.
Value add game is a long-term community strategy there is no exit strategy.
You are reinvesting profits into scaling up the business.
Niche fame micro community less paparazzi
Get vision from the community so that you can improve the product
There is a higher chance of success based the feedback from the customer
There is a higher chance to sustain through building a community of loyal customers.
The valuation game is glorified.
#ilhfamily #ilhdeeplearner
Keep it up Vijay
Thanks a ton, Vijay.
This Podcast from Sidz – talks about business game changer model by adopting Value Added Game and moving away from the highly glorified ( in Main stream Media ) – start Ups / Unicorns which are Valuation Game Models .
Different types of business models in the market are :
1. Manufacturing models- which require huge manpower, place and Ample Time to succeed , break-even
2. Distribution models – which again require huge manpower , space and ample Time to become profitable
3. Services Model- MSME model -which requires more people and place and Time to become profitable
4. Franchisee Model- Where there already Business in the Box and you need to get trained by investing with the Main player . This requires infrastructure, shop space , investment , employees . Success depends on the acumen of the Franchisee in learning the nuances of Business through the Main Franchiser / Player
5. Aggregator Base Model – Where the business man meets the customer through a Facilitating platform- like Uber, Ola, Swiggy
6. Freedom Business Model – Which is about selling your knowledge, Expertise to a dedicated community through Digital Platform
The highlights of the Podcast is the comparison between Valuation Game( VG) and Value Added Game ( VAG), with the journey , intention and the destination: The root determines the fruits of the game
Attributes of Business ( Mainly Services Business )
1. Exit Strategy VG-1 : Yes is the primary intention
VAG1: NO
2. Business Investment VG-2 : Angel Investor Funding/ Venture Capital
VAG2- Equity is closely held – is primarily based
on Community Strategy
3. Value of Business VG-3 : Based on User Base and potential growth
VAG3: Based on Results of Customers and The
Value of Eco system
4. Requirements of Business VG-4 : Marketing , Tech Expertise ( Inhouse)and
Space
VAG4: Marketing, Tech Expertise ( Freelancers)
and NO SPACE
5. MONEY MANAGEMENT VG5: Requires robust money management
strategy including cash Flow
VAG5: Not Required as it is purely self generated
business through Long Term Community
Strategy
6. NUMBER RACE VG6: There is pressure to make the
Numbers work out
VAG6: No pressure as different model
streams can be modelled for short
term and long term growth
7. SALARY VG7: Very High as it is borrowed money due
External funding
VAG7: No Employee or minimal Employee
Model , So that Owner has freedom to
tap from the Business generated
funds- which is all cash/ liquid
8. EQUITY PLACEMENT / SELLING VG8: YES – VC/ Angel Investors quote for
equity stake , be invested and book
profits and Exit
VAG8: NO- closely held equity , no
necessity to dilute equity for
funds
9. LONG TERM VISION VG9 : NO, As the intention is to grow
and Exit , normally Long Term
strategy from Angel Funds/
Venture Capital Investors is
absent
VAG9: as the business growth is based
on constant Feedback and
Organic Growth and Long
term community Strategy –
there are higher chances of
Long Term growth due to
Valued Customers
10. FREEDOM VG10: Golden cage Feeling with no
freedom
VAG10: Huge FREEDOM by using
Technology and Upgrade
Strategies
11. FAME VG11 : Highly Glorified in Main
Stream Media but forgotten
VAG11 : Fame in Micro Community –
or NICHE FAME
12. HIT OR MISS chances VG12 : YES
VAG12 : It is based on what market
is waiting For , likely it will work well
13. Market scalability VG13: Product/ Service is scalable
with dependency on
Platform efficiency and
Infrastructure to match
VAG13 : Scalable through add on
Value propositions
14. THREAT VG14: HIGH – if research and
Development is not ascertained
VAG14: LOW – Because it is
knowledge centric and has
already been tested prior to
launch
15. ETHICS AND NATIONAL INTEREST VG15 : In fact Start Ups have Tax
Holidays for handholding them
and may not assure Value and
ethical system , as the market
is chasing the Marketing
numbers . There is no
opposition to start Ups or
valuation Games But the
gestation period for tax
generation is very High – with
attrition rate being high of
employees too
VAG15 : Pay tax and Flourish is
the model
Hybrid mixture of Valuation game and Value Added game is recommended from capitalistic Point of View
#ILH DEEP
LEARNER
#ILF FAMILY
#KINHAL KONNECT
Thank you, Sridhar. These are some great insights.
#ilhdeeplearner #ilhfamily
Valuation Game vs Value-Add Game”
6 types of different business models(most of them requires human component and huge investment )
1)Manufacturing
2)Distribution
3)Services
4)franchise
5)Aggregate based model(ola,uber)
6)Freedom business model(requires brain-our kind of model)
Comparison b/w valuation and value add
🙆Root will determine the fruit.
Valuation who build product or service which is platform based which is scalable whereas value add is digital products.
🙃Valuation based on user base (not as glamourous as it looks on surface) on the other hand value add based on results of costumers.
🤐Valuation is comprised of an angel invester and venture capitalist on marketing, tech, team and space for scaling, however in value add it goes into marketing, tech, team.
😇Valuation is about multiplying money,exit value strategy and liquidation and value add is based on long term community strategy and more invested in company.
Valuation pressure to make numbers work (NO FREEDOM), on value add pressure is there but personal but no borrowing here investing profit into business.
🙂Moving money in right direction is pivotal for any business.
😊Need of the hour :Glorification of Value add.
🤓Aspiration:get visions from the community .Higher chance of loyal costumers. More sustainable and predictable. (Value add)
My take 👼:FREEDOM is my birth right. Certainly, that is what draws me towards this community. Be your own boss. I am not looking for fame but do want to play this game to make a space not to earn name but have a life with an aim.
Valuation game vs Value add game
” Roots will determine the fruits ”
6 Types of Business Models:-
1. Manufacturing business
2. Distribution business
3. Services Oriented Business
4. Franchise Business
5. Agegrator-based Business
6. Freedom-Based Business
The valuation game is comprised of Angel Investors and
Value-added Business Models like Freedom Based Business Model.
#ILHDeepLearner
#ILHDEEPLEARNER
– Value add game involves getting results
– Valuation is about adding spend to increase valuation to get a profitable exit
– Value add means your skin is in the game
– If you have investors, the pressure is on you to give the returns
– in valuation you are managing money more than providing value to the business
– You need good mentors either way. When you get funded, when not mentored, you might splurge in the wrong areas
– News headlines are more focused on Funded companies but more limelight should be given to the companies who pay taxes, create jobs, create opportunities for others.
–
– Mainstream game gets you attention but a lot of it is unwanted and may not come from those who use any of your services or products
– In the Niche game, you are an unknown to the general world but in your community you are a star
– Value add business can help you take the profit back into the business.
– In the Value add business you don’t look over your shoulder because you are in control and the vibe of the business
– You have a higher value system in Value add business
#ilhdeeplearner #ilhfamily
Really appreciate the way the difference between the 2 models has been articulated. Super value stuff.
I personally resonate with the Freedom Business Model because as you say, “There is no Exit Strategy”.For me, business is a long-term game about creating a legacy.
Coming from the finance side of the business, I can understand the negative stress of borrowing money from investors in a start-up.
The freedom Business Model is more of a Boot Strapping model and works well in long term.
Thanks for sharing..
#ILHDEEPLEARNER
Thank you siddarth for valuable Podcast
Biggest takeaways are
Valuation game Vs. value add game
6 Different types of business models
1)Manufacturing based companies, more infra,more people
2)Distribution companies – More space more human components
3)Services based companies – MSME, Traditional business .
4)Franchise business –health or food business ,human component, good location ..
5)Aggregator based business ,-connecting service provider and consumers, resourses ,prime ads,
6)Freedom business model ,No office no staff ,knowledge in the form of digital, No need of manufacturing, shipping
Compare valuation and vale add game
Root determines the fruit, Valuation game is build a product or service it’s a platform based which is scalable ,Value add game is Knowledge based on digital products platform and scalable Valuation based on value is based on users ,initial stage investment is on acquisition and value long term and create value to company,
Value add game is Value of that business is based on the results of the customers ,More and more build the community and results of the customers that will increase the ecosystem which has created
Valuation Game is like angel investors and venture capitalist, investment is goes into the Marketing, tech,team ,space scale it to next level
Value add – Marketing ,tech ,and teams space is not required…
Value add game –freedom business model is all about the Constant feedback from the community based on long term Community strategy…Value the equity ,Root determines the fruit .
Valuation game there is pressure to increase the sales numbers, lot of pressure in it
Pressure to make more sales but more on personal side .freedom it will be there its not borrowed money from any angel investors .
Valuation game is like a hit or miss the strategy its very rare to see the unicorn go and sustain,
Freedom business model ,Build the community, get feedback from the community, higher chance of success and sustain through building the loyal customers ,more sustainable and predictable .
Thank you sidz…
#ILHDEEPLEARNER
#ILHFamily
Valuation game versus Value-add game:
>>Valuation game –
Money goes into Tech
There is a lot of pressure.
Glorified on media. Have fame.
Do not have freedom
>>Value add game –
No exit strategy,
value is based on the results
Long-term community strategy
Getting results for every new member.
More Freedom
Root determines fruits
Not glorified by media, but have niche fame.
Getting feedback from the community to build products.
Value add game….
Types
-Manufacturing
-Distribution
-Msme – need people, place infra
-Franchise based business – business in a box
-aggregator based
– Freedom – need knowledge in form of digital products
Easy to scale
Go global
But it takes time
Valuation v/s value add
The root will determine it’s fruits
Both are platform based but value based is digital product based
The value is based on result for customers
Valuation game based on user base
Venture cap.- always based on some exit strategy
Value add- long term community strategy, not based on exit strategy and cashing out
That’s why more investment into getting results, long term results
Valuation Game- pressure to make the numbers work
Borrowed money brings pressure to make the numbers
Value add- pressure is there but investment is going to be from self to business
Valuation Game- no Freedom
Value add- freedom and niche fame
Higher chance of success and sustainability by delivering world class value to customers in FBM
Very clear, I never knew difference between valuation and value add game so clearly. I am always with value add game.
Thankyou Siddharth for helping me understand my positioning
1. Aggregator based business model – Connect service provider and consumers
2. Freedom Business Model – You don’t need office or employees.
3. The path to becoming a unicorn is not as simple
4. Valuation Game: There is an exit strategy attached to it
5. Value add Game: Based on digital products
6. Need to glorify the value add game more
7. There is no freedom in valuation game
8. Valuation is a game of hyper pressure
9. Play the value add game long-term and then think about playing valuation game (if you truly believe in that)
Six type of business models :
1. Manufacturing
2.Distribution
3.Services
4.Franchises
5.Aggregator
6.Freedom business model
Valuation game (All) vs value adding game (Freedom Business Model) :
1. Value is user based value based on users result
2.Exit strategy community based strategy
3.Pressure Pressure to gain the Freedom
4.Golden cage Real Freedom
5.Glorified with Freedom Growth with Freedom.
Thanks.
Six different types of business models:
a) Manufacturing
b) Distribution
c) Services
d) Franchise
e) Aggregator
f) Freedom Business Model
valuation – user based, angel investors,
value add – value of business is based on results of customers
Long term community strategy, no exit strategy, more involved in getting results
Valuation – pressure to meet the numbers
Value add – reinvest your money to scale up business.
main stream media does not glorify freedom business model.
#ILHDEEPLEARNER
Valuation Game vs Value-Add Game
Six types of business
1. Manufacturing – More Manpower, Infrastructure
2. Distribution
3. Services Orientation
4. Franchise Model
5. Aggregator Model
6. Freedom Business Model – Advantages – No office, No More manpower, no infrastructure
Comparison
Valuation game – Platform based and
Value added – Digital Platform and Scalable
Valuation game – Comprised and Investor.
Value added – Money goes into marketing, Sales, and Teams
Valuation Game- Pressure to increase the number and sales
Value added – Pressure to increase personal sales. More Freedom.
Valuation game – Urge to save the taxes
Value added – free to pay the taxes 🙂
Valuation game – depends on ads and needs more funds not more sustainable
Value added – Sustainable and with more Freedom
Take aways
1) Manufacturing- infra structure
2) distribution –
3) service’s- people, place
4) franchise- with system, proper training
5) agrrigater based model
6) freedom business model – no office , no infra
– Aggregator burn lots of money at first.
– The root determines the fruit.
– valuation game is user based.
– value add game – value based on results of customers .
– valuation games angel investors money goes to marketing ,tech,ad. ,Space but with mindset of exit strategy.
– in value based on long term community strategy. So more invested in to company.
– valuation game has pressure to make the number but pressure is from angel investors.
– value based business..it’s your personal pressure but no one on your head to show number game .
– Starter founder is much glorified by media but value based business are not glorified .
– value based business is really making an impact in society and paying taxes on time.
– freedom business model- we have freedom and famous in their niche.
– valuation game – hit or miss strategy. But value based is like unicorn…the long term one
– value based business has higher chance of success bcoz of community feed back and organic reach . It’s more sustainable and predictable.
The main message I got from this podcast is that the start-ups require a lot of capital upfront and consequently become a source of stress to the borrower as this money needs to be returned to the investors, most probalbly with higher interest.
The digital knowledge businesses on the other hand can be started without any investor funding and can be scaled up as the value is added to the products/services over time.
Very Very Valuable insight to the whole concept of Valuation. An excellent analysis on a more deeper concept – VALUE ADD GAME.
Common concepts:
1. Sales
2. Customers
3. Services
4. Technology.
What is different in Value Add Game:
1. Tribe/Community long term
2. Concept of After Sales (completely different – 180degrees difference)
3. Total involvement by the Founders on a daily regular basis.
4. Entrepreneur in true sense. Dilution can never happen, if a FULL STACK BRAIN
5. Life Long Customers – with great scope to scale up and provide better experience to the loyal cusotmers.
Valuation game vs Value add game
6 different types of business models
1. Manufacturing
2. Distribution
3. Services oriented
4. Franchise based
5. Aggregator based
6. Freedom business model ( knowledge and expertise and no employees)
Roots >> fruits
Valuation – make it big / cash out
start ups >> products >> scalable >> based on no of users >> based on the results of custoemrs >> money put into mktg / tech / teams / space
all based on EXIT strategy
no real freedom but get fame
Hit or miss – hard to be / retain sustain Unicorn fame
Value add – money put into mktg / tech / teams / innovation
be more frugal — have the right mentors
msm hasnt glorified VAL add businesses – yet
108 rev Crores amongst 50 members – paying taxes on time
Niche Fame
uation Game vs Value Add Game
Mainstream media glorify
Few millions
Franchise
Focus on value add
Empowering people
Education helps more people
Build communities
It is better to have freedom than borrowing others money
Focus on NICHE Fame
Make sustainable
Stay for long period of time
#ILHDeepLearner #ILH #ILHFamily
#ilhdeeplearning
Valuation Game versus Value Add game
I love this topic – having been in this space, helping companies raise cash am eager to check this out!
Let’s dive in
Valuation Game versus Value-Add game
How main stream media goes overboard on the valuation game played by start-ups? This is the topic of discussion in this podcast.
Basically 6 types of companies
– manufacturing – need infrastructure, capital
-education – need
-services – need people and space
-franchise – need a master brand to lead – a chain of distributors – human component are required – good thing here is you don’t need to reinvent anything – just sell and distribute
-aggregator model k- connect the service provider to the user and benefit from the arbitrage – trying to play the valuation game and scale
-freedom business model – is the one that ILH is using
– where you are creating a digital model – with bare requirements – just be a knowledge giver – work with time and brains – just one person with a laptop or phone and internet connection is all that is needed
Becoming a unicorn is never easy – not at all as easy as what the media claims 🙂
Valuation Game
– based on an exit strategy –
remember the Root determines the Fruit
-pressure from governments, investors, consumers, markets, and Wall Street – and Marc has to continue to deliver
Value-Based – or Value Add
-in this model as in ILH – As more and more people gain results in the Value-Based game – over time actual wealth creation happens daily for all the downstream students and communities in all
In the case of Valuation based model- all capital goes into space, tech, marketing, and branding – the problem is because of the fact the investor is typically doing this to plan an exit – this is the fundamental thought process.
in the Value-Based model, there is NO exit strategy – and has been planned to create value and based on creating long term strategy, and not protect any one party – or based on an exit plan.
There is real pressure that comes from investor money – this is very insidious and has a way to give you sleepless nights. It feels good for the press to talk about how you raised money but the freedom that comes from your own value add model – is not trivial.
One should be fortunate to have good mentors who can advise you on how this should be done. There are real good ground-up entrepreneurs who are creating real communities and spreading knowledge and wealth. The mainstream media is not either understanding or willing to glorify or even talk about these real entrepreneurs.
It is rare to see unicorns will go on and stay in the leadership position for long – because from day 1 it is designed to exit those that are invested.
ILH has, for example, a collective 50+ people that have combinedly generated over Rs 120 cr in the last 4 years with at least 20 cr or so having been given back to the community. This is not being covered well in the media and is not given the scope and attention it deserves. But this is not about that – this podcast is about how the value-add model differs from the valuation game and how in many ways it is actually superior.
It is even possible that a Value Add model can switch to a Valuation model after playing it long enough – say 10 years or so, if required. But clearly the Value Add model has some significant strengths that need to be understood.
–
Very Very Valuable insight to the whole concept of Valuation. An excellent analysis on a more deeper concept – VALUE ADD GAME.
Common concepts between Valuation and VALUE ADD GAME
1. Sales
2. Customers
3. Services
4. Technology.
What is different in Value Add Game:
1. Tribe/Community long term
2. Concept of After Sales (completely different – 180degrees difference)
3. Total involvement by the Founders on a daily regular basis.
4. Entrepreneur in true sense. Dilution can never happen, if a FULL STACK BRAIN
5. Life Long Customers – with great scope to scale up and provide better experience to the loyal cusotmers.
Valuation Game vs Value-Add Game
This podcast will open eyes to build business.
Mainstream: Start up guys are highlighted.
6 different types of business.
Manufacturing: Need infra and logistic
Distribution companies: More space and human components
Services oriented business: multiple factors required.
Franchisee system: Right location, human component (Business in box)
Aggregator based business: connecting service provides and users. Uber, Ola
Freedom business model: Knowledge in form of products.
It takes time to build in this business.
The social network series.
Valuation Vs Value add game:
There is an exit strategy in valuation game.
Root determine the fruits.
Example of apple and Facebook.
Valuation:
Based on user based.
Is not as glamorous as it looks.
Money goes in: Marketing, tech, space, team
Exit game is there
Value add game:
Based on results
Money goes in: Marketing, tech, team
Constant feedback from community. No exit game.
Based on long term strategy. More invested in company, people and results.
There is pressure to get money and return it to the invested in valuation game.
Less pressure in Value add game.
Main stream media is not glorifying this value add game.
Tax paying by value add game is lot.
Niche stream fame for value add game.
Hit or Miss
To make companies sustainable its really a big challenge.
Chances of success are more.
Valuation Game vs Value-Add Game”
6 types of different business models
1)Manufacturing
2)Distribution
3)Services
4)franchise
5)Aggregate based model(ola,uber)
6)Freedom business model(requires brain-our kind of model)
Comparison b/w valuation and value add
1. Root will determine the fruit.
Valuation builds a product or service which is a platform based which is scalable whereas value added is digital products.
2. Valuation based on user base (not as glamourous as it looks on the surface) on the other hand value add based on results of customers.
3. Valuation is comprised of an angel investor and venture capitalist on marketing, tech, team and space for scaling, however in value add it goes into marketing, tech, and team.
4. Valuation is about multiplying money, exit value strategy and liquidation and value add are based on long-term community strategy and more invested in the company.
5. Valuation pressure to make numbers work (NO FREEDOM), on value, add pressure is there but personal but no borrowing here investing profit into the business.
6. Moving money in the right direction is pivotal for any business.
7. Need of the hour: Glorification of Value add.
8. Aspiration: get visions from the community. Higher chance of loyal customers. More sustainable and predictable. (Value add)
The real guys build solid products, solid income, and pay taxes.
Play the value-add game.
Bingo!
Right mentors do matter!
A longer approach should be kept in mind.
The freedom Business Model is what we all follow here.
No people, no logistics, no huge investment…
Takes time, however…
To become a unicorn takes time and effort
There’s pressure even here but here it’s self-put.
Nuances of money management.
Be frugal and move it in the right direction.
There’s pressure even here but here it’s self-put.
Nuances of money management.
Be frugal and move it in the right direction.
The root will determine the fruits- Mark Z, Steve… external pressure to fulfill their vision
Value add Game- Based on the results of the customers.
No exit strategy. 100% equity. No cashing out strategy. Long-term commitment.
Valuation game: Need to make the numbers work. Funded but a lot of pressure there.
Apple, Amazon, few Indian businesses Vs Freedom Business Model: Get a vision
Organic growth, recurring high-end value, put back in the front end again.
Making a difference in people’s lives and therefore should be more glorified by the media.
Charity and Taxes contribute to the country’s economy!
For the VALUE-ADD game.
Valuation Vs Value add game
6 types of businesses
1.MANUFACTURING
2.Services
3.Startups
4.Franchisee biz
5.AGGREGATOR BIZ
6.FREEDOM BUSINESS MODEL
Comparison between the both
1. Based on the LTV of cutomer base while the other one is based on cutomer results..
2. There is exit startegy vs no exit strategy in FBM.
3. Funding by VC and no external funding in FBM.
4.Media glorifies startups and not the FBM..
5.Lot of publicity and coverage and no publicity/media coverage in FBM.
6. Hit/Miss chance is there in startups and no Hit/Miss chance is there in FBM.
7.Startups are not sustainable whereas FBM is sustainable and no overheads.
As a country and media they have to glorify FBM for adding value to customers and paying taxes on time to government..also doing charity to society..
#ilhfamily, #ilhdeeplearner
This podcast has added massive value to me. #ilh #deeplearners …. Startup and Aggregator Business model are sprouting up but they need big investments, space and manual labor. Freedom Business Model is not in the form of space and time, it is about adding value of knowledge to catch fish themselves. It does not need to look glamorous and attractive. Value-add game is based on results while valuation game is just consuming. Freedom Business model (FBM) is a long term community strategy which does not have any exit point unlike startup, unicorn and aggregator business models. There is freedom in FBM while other business doesn’t have freedom but only mainstream fame. FBM gives life values, learnings, results, transformation and making difference in others life. So, it needs to be in spotlight and mainstream lifestyle, fame is not the focus of this strategy.
6 Types of business models :
1. Manufacturing: More manpower, space
2. Distribution: more manpower,
3. Services: Manpower, location,
4. Franchise: Launch with a proven system
5. Aggregator: Tech platform and connect the service providers and the users , high investment , burna lot o money in the 1st phase
6. Freedom Business Model: No office, no employees, you need brains, knowledge and to create digital products
Comparision between Valuation Game and Value Add Game :
♦️Startegy
1. Valuation : Exit Strategy exists in the mind
Value Add: Long term..stay and build a community . No exit strategy.
♦️Products
2.. Valuation : Startups create products /service that could be scaled through platforms
Value Add: Digital Products that is scalable.
♦️Rule of the Game
3. Valuation : Game based on Userbase
Value Add: Games based on Results
♦️ Investement
4. Valuation : Investment goes into: Marketing, Team, team and Space
ValueAdd : Investment goes into Marketing, Team, team but Space not required.
♦️Pressure
5. Valuation: Pressure on Owner to give it back
ValueAdd: Personal Sales with Freedom and no liability to pay back.
♦️Glorification :
6. Valuation : More glorifiedby media . Business owner gets Mainstream Fame
Value Add : Should be more glorified by mainstream media . Owners are famous in the Niche Stream Fame
♦️Aspiration :
Valuation: get funded
Value Add: Get community and drive the vision of success.
♦️Sutainability :
Valuation: Difficult to sustain
ValueAdd : More sustainable
ValueAdd can move to Valuation post 5 – 10 years of real value add, developing the value system , getting results for your community members …. Byt the focus is never an exit strategy but always building tribe and how to get results n success inside the Tribe .
The day will come when the mainstream media will start focusing on the Niche experts and the Freedom business entrepreneurs and then this business will also get the hype like the startups today.
without any further expectation , it is important to keep on building the community , adding value to the community and helping people get faster results and impact more people in a chain process.
#ILHDeepLerner
Valuation Game Vs Value addition game .
6 types of business models:
# Manufacturing company’s
# Distribution Company’s
# Service oriented Company’s
# Franchise based business_ Health & Food .
# Aggregator Business Model Connect service provider and customer like Uber ,Ola
# Freedom Business Model _Provide Knowledge in the form of digital products become much more scalable globally.
The intent of the entrepreneur the root will determine the fruits.
Is Value add game the value that a particular business is based on the result of the customer.
Valuation Game is based on the user base.
Value add game is a long-term community is based on result. there is no exit strategy. My value is 100% and reinvesting profits into scaling up the business.
There are many members are there in community scaling the business with the model followed by ILH. It is niche based fame .
Get vision from the community so that you can improve the product.
There is a higher chance of success based the feedback from the customer is community based.
There is a higher chance to sustain through building a community of loyal customers and its become more sustainable.
The valuation game is glorified, but there is no freedom.
Yes we are in value add game here in ILH under the supervision of our magical mentor Sidz.
The Freedom Business Model is a value add game that takes time to crack & feel it’s craziness.
The root determines the fruit.
We have to attract the mainstream medias as we add value to the society.
We build the community by our continuous effort to be sustainable in the market.
We pay taxes to build the nation & charity to help the less privileged.
So we have to create more & more entrepreneurs through value add game.
#ilhdeeplearner #ilhfamily
# ILHDeepLearner
Valuation Game Vs Value add Game
Roots determine the fruits
There are 6 Business Models to compare the valuation game and value add game
1-Manufacturing
2- Distribution
3 -Service based business
4- Franchise based business
5- Aggregator business model
6- Freedom business model
Comparison between Valuation Game v/s Value added game-.
Valuation –For Start-up Business scalable, platform based. User based.
Value add – Personal brand or value is based on results and digital products.
Valuation – scaling the business
Value add –Value of results based on long term relationship with the community
Valuation – more pressure for payback, borrowing from others. And profitable
Value add – your profit investing back in business … And right mentors.
Valuation – Innovation more glorified
Value add – not glorifying. This needs to be more glorified as they build the country for a better good
Valuation – no freedom. Golden cage, Glorified
Value add – freedom and niche fame no main stream game
Valuation – sustaining might be difficult for a long time.
Value add – community feedback and vision from them and modify to make it better.. Higher change to sustain.
Valuation – maintaining is probably tough for a long term.
Value add – community remarks and vision from them and modify to make it better.
Thanks.
Glad that you shared this. It gives us direction to think for our future in business. Grateful to you.
“Valuation Game vs Value-Add Game”
6 different types of Business Models :
1. Manufacturing
2. Distribution
3. Services
4. Franchise based
5. Aggregator Based (Uber, Swiggy, Ola)
6. Freedom Business Model (No office, No Employees, Digital Products)
*****The root will determine the Fruits*****
Valuation Game –
1. Platform based services which is scalable.
2. Value is based on User Based.
3. Mostly comprised with Capitalist or Investors, money moving into Marketing, Tech, Team & Space.
4. Based on Exit Strategy.
5. Pressure to make the number work (Because of borrowed money).
6. Start Ups are glorified on Media Platforms.
7. Mainstream Fame Focused.
8. Not focused on building Communities.
9. Non Sustainable.
10. No Freedom.
Value-Add Game –
1. Platform based, scalable, based on Digital Products.
2. Value is based on the results of the customers.
3. Money goes into Marketing, Tech & Team (Not on Space).
4. No Exit Strategy. Long term Community Strategy, based on Community Feedback.
5. Pressure to make the number but on personal note (Independent).
6. Not Glorifying on Media Platforms. People pay taxes on time. Making a difference.
7. Non Mainstream Fame Focused.
8. Higher chance to build communities on Loyal Customers with the Feedback.
9. Sustainable.
10. Freedom Focused.
#ilhdeeplearner
#ilhfamily
It makes it more clear that Freedom Business Model is Best suited for Me.
Superb knowledge
really crisp and clear
MPTY SIDZ
#LIHDeepLearner
5 Business Models
1. Manufacturing Based : More Infra, Resource, Land,Too Many Human Components
2. Distribution :
3. Service Based MSMEs :
4. Franchised: Re-invent the wheel is not required. Business in Box
5. Aggregation: Bridges the gap between providers to consumers (OLA,Zomoto,OYO)
Freedom Business Model :
Knowledge Giving as Digital Products
Less Human Component
Root Will determine the Fruit
Valuation Game:
• There is an exit strategy
• Pressure from Various sources
• Build Platform/Products
• Burn so much money to build user base
• It might be white elephant
• Not User’s Results Centric
• It is burrowed money
• Pressure to make numbers.
• Glorification in mainstream media
• Hit or Miss Game
• Less chance to win this kind of game
• Unpredictable and less chance of sustainability
• Too many variables and too much uncertainty
Value Add Game
• Community Result – Oriented
• Money should be in
• Market, Tech, Teams
• Space is not required
• Based on constant Feedback from community
• No Exit Strategy – Value to Equity 100%
Less Overheads
• Invest money
• No Borrowing from others (Big Freedom)
• Make Profits -> Invest Back to Business Wisely
• No Glorification for this segment in main stream media.
• These segment pay taxes in time, creating and providing opportunities
• Fame in their tribe or community
• Hit and Miss purely based in our hands
• More chances of Hit because of long term sustainability
• Our efforts directly proportional to our growth 100%
• Real Nationality Builders
Valuation Vs Value Addition Game
There are 6 types of Business.
1. Manufacturing
2. Retail
3. Distribution
4. Franchise
5. Aggregators
6. Freedom Business Model
When you are running a digital Freedom Business Model, you are impacting lives directly, and the product is courses and delivered in the form of video and audio. So you don’t need shipping and logistics.
The best part is that you are the face of the business and you are creating an impact.
| Valuation | Value Addition |
| — | — |
| Exit Strategy | No Exit Strategy |
| Equity is diluted because venture capital is sought for doing the business. | 100% Equity owned by the Entrepreneur |
| Pressure to keep the bottom line healthy | Pressure to create Value Addition & Engagement |
| Freedom is lost | Freedom is the experience of the process |
| Great Product | Great Value |
| Transformation is the Product | Transformation is the Customer Life |
| There is a huge glorification of the Company to win the valuation | Glorification is based on transformation |
| Works on Borrowed Money | Works on Created Value and Profits |
| Probably has a Community | Community-based Business |
| Ad Costs are very high | Ad Costs are sustainable |
| Threat of borrowers withdrawing | The threat is only if the entrepreneur has a health issue. But once the value is created it reigns |
| Status Elevation | Fulfilling Experience |
| If the Startup dies, it may be difficult to start again | If the entrepreneur goes back to zero, he can quickly grow again based on his skill. |
| Needs more money to scale | Need more community members to scale |
#ilhdeeplearner #ilhfamily
Understanding of why you are doing, whatever you do is the primary element. No matter what’s in Trend or what others are doing can not be a deciding factor for what and how you should branch out or look for expansion. It’s important to connect with your value system and follow your own guidelines. Your community driven mindset keeps you on track to keep adding value. Root determines the fruit.
The real guys build solid products, solid income and pay taxes.
Play the value-add game.
Bingo!
Right mentors do matter!
Longer approach should be kept in mind.
Freedom Business Model is what we all follow here.
No people, no logistics, no huge investment…
Takes time however…
To become unicorn takes time and effort
There’s pressure even here but here it’s self-put.
Nuances of money management.
Be frugal and move it in the right direction.
There’s pressure even here but here it’s self-put.
Nuances of money management.
Be frugal and move it in the right direction.
Root will determine the fruits- Mark Z, Steve… external pressure to fulfill their vision
Value add Game- Based on the results of the customers.
No exit strategy. 100% equity. No cashing out strategy. Long term commitment.
Valuation game: Need to make the numbers work. Funded but a lot of pressure there.
Apple, Amazon, few Indian business Vs Freedom Business Model: Get vision
Organic growth, recurring high end value, put back in front end again.
Making a difference in people’s live and therefore should be more glorified by the media.
Charity and Taxes contribute to country’s economy!
For the VALUE-ADD game.
startup guy
to understand new enterprise
6 BUSINESS MODELS
right approaches
long type approaches
1. manufacturing
2. Distributors
3.service
4. franchises
5.agrigators
6. Freedom- more scalable, it takes up time- no space required.
root determines the fruits
nitch fame
more sustainable game
aspiration- building community
big difference in economy.
comparison- Value Game and value adding game.
value add game – based on digital product.
mindset
value on base on results
Open your eyes towards building a new business!
Valuation is being glorified in todays FOMO world.
6 types of business models:
1. Manufacturing
2. distribution
3. MSME
4. Franchise based
5. Aggregate based model
6. Freedom business model
We are a FREEDOM BASED MODEL
It takes investment of money, time, and efforts just like any other model.
Valuation game is not as easy as its show out there. It does add value but there is some exit strategy and an intention to make a lot of money at the end of it.
Valuation vs value-addition game: Glorified life inside a golden cave vs dream freedom lifestyle wherever you wanna go!
Major Highlights:
*Root will determine the fruit.
*Borrowed money will add pressure and give you sleepless nights coz of less freedom in Valuation game.
*Money management skills and expertise are needed with right mentor guidance
*Startups are glorified in all social media platforms. But they are not highlighting real transformation happening around.
*Decide what you want to be- a hit or miss model, very low chance of success VS high sustainability and predictability with great value addition and recurring growing residual income.
*20-30% net profit achievable in Value based
*Charity mindset achievable in Value based
* Paying taxes on time achievable in Value based
*Value based Business is a game changer in economy if played long enough n then people can broaden their horizon to create awareness of their business through entering the Valuation Game!
Having a value system around your business can create waves in the business industry and Indian economy as a whole!
Thanks Sidz- got a lot more clear on my purpose n vision!
It’s a lifetime purposeful game on for me! 🙂
Peace,
Pankhii
Top 3 takeaways:
I was confused about it. What a perfect time to hear this. We have a chance to raise funds, and I was a little tempted by everything, but it looks like everything is clear after listening to this podcast.
1. Focus on community building
2. No successful business (or rarely) can be made with an exit strategy in mind.
3. Valuation game is not as glamorous as it appears. It comes with its pressures and liabilities that are often not discussed.
4. Value-add game is all about results. Great businesses are made on value-add systems.
Six Types of Business
1. Manufacturing
2. Distribution
3. Services (MSMEs)
4. Franchise Based Business
5. Aggregator Based Platform
6. Freedom Business Model
Valuation Game
Funded by X Company.
Startups build a platform
No. of Users LTV of the Customers
Valuation Game is user based.
Angel Investors and Venture Capitalist. Marketing, Tech, Teams and Space.
They have a Exit Strategy.
They have pressure to make the numbers work.
Forbes, Your Story, The Mainstream Media.
Living Inside a Golden Cage.
Value-Add Game
The Real Guys, the Entrepreneurs.
Brains in the Form of Digital Products
Lesser Overheads in the system
The Value of the business is based on the Results of the Customers.
There is higher chance of Success.
More Sustainable. More Predictable.
NOT AGAINST THE VALUATION GAME.
BUT FOR THE VALUE ADD GAME.
Valuation Game and Value-add game:
There are 6 types of starts up, having the main aim to attract investments and serve the world with purpose.
5 Out of 6: Focused on valuation game
-These are Manufacturing, Distribution, Services, Franchise, Platform Based Model
-Need to burn a lot of money in initial cases. It’s rare and consists of many uncontrollable factors.
-Pressure from the government, and many external factors
-Scalable, platform-based, used-based value
-Comprise of investors, goes in markets for scale
-Based on the exit strategy-Ulitmate goal
-Glorified on all social platforms
-No Freedom, but got a fame
-Though Unicorn, need consistent efforts for sustenance
6th: Focused on value-add game
-This is Freedom Business Model
-Also Platform based, scalable, based on digital products
-Value is based on experiences and results
-The money goes into marketing, techs, and people
-long-term community strategy and no exit strategy
-Also has pressure based on personal performance
-Making a difference in people’s life- is not glorified on social media platforms and pays taxes
-Business owner has the freedom and niche fame (community fame)
-More sustainable and predictable
#ilhfamily #ilhdeeplearner
Valuation Game Vs Value Add Game.
> What is your purpose will decide which game you want to play.
> It is clearly more fulfilling to play value add the game to create the impact
> If you are creating results in your life, it is worth sharing with others to play value add a game.
Valuation Games can also be impactful if the purpose is to add tremendous value to the user.
Aad Valuation game will sustain over a more extended period only when it is backed by a value add game.
Thank you Sidz for comparing these two concepts in such details.
Value Added Game
1. Value Added game is a freedom business model.
2. It does not require capital investment or huge opex or capex.
3. It requires no office space or employees
4. No pressures from angel investors or venture capitalists
5. Community experience is the biggest endorsement
The benefits and risks of a vlaue add vs a valuation model are nicely brought out.
Thank you Sidz. Its a really important
topic-
Even I was sometimes lured by it.
Biggest Takeaways-
Valuation Game but provide Value provided Products-
6 different types of business models
1. Manufacturing based Business
2. Distribution based Business
3. Services oriented- MSME, Traditional Business
4. Franchise based- Health Food- Reinvent any thing
5. Aggregator based- Technology based Company like Uber , Ola
6. Freedom business model ( knowledge and expertise and no employees)- Remote Based Business
Valuation Game Vs Value Add Game.
> What is your purpose will decide which game you want to play.
> It is clearly more fulfilling to play value add the game to create the impact
> If you are creating results in your life, it is worth sharing with others to play value add a game.
Valuation Games can also be impactful if the purpose is to add tremendous value to the user.
Aad Valuation game will sustain over a more extended period only when it is backed by a value add game.
Thank you Sid for comparing these two concepts in such detail.
Valuation or Value Add?
My learnings.
The most important question to ask is what is it that I am looking for. Is it freedom and being your own boss or playing big and getting fame for it and finally exiting?
If it is the first, then a Value ad is the way to go about or else go for Valuation.
Play the game which is more full filling and satisfactory.
valuation may give you more money along with more pressure for numbers, glorified but you are confined to golden cage as there is not freedom., it has its own charm.
On the other hand in Value added game, we feel fulfilled by paying tax on time. Be aspired to nuture community. See organic growth as it works on results.
What a Podcast !! It forces you to think and think again about the real purpose for you to be a creator. Do you want to be in a valuation game ( creating value for your shareholders ) or do you want to be in a game of creating value for your stakeholders and building communities of value, that can keep the value flowing through generations and keep impacting the current and the future generations to come.. Absolutely brilliant differentiation between the two models and the story on each side.. Don’t go by what is shown by the Media, think and think hard and create a difference !!!
Interesting take Sidz! You nicely differentiated between the Valuation Game and Value Adding Game. Learned the nuances of different biz models. It confirms my conviction that I am playing a Value Adding Game and want to continue that enabling my clients to achieve great results.
Rajiv Talreja in his yt video and Warikoo in his start up course have stripped the fake glamour of valuation. Investors’ money comes with many fair expectations and that creates pressure and puts the promoter in a Golden cage. His focus of growing community dilutes and he has to focus on growing the investors money. Many Unicorns are under pressure to keep the investor’s game going.
Investors invest in the life time value of a client, but most client may or may not remain for a lifetime, especially when the focus of the core gets diluted.
Valuation game is about multiply and exit and this is against the ethics of a community builder who is working like a farmer.
The ILH does not need that many resources. So there is no point in taking that pressure, which even Warikoo who had raised 40 million dislikes it.
#ilhdeeplearn
Amazing learning. Thank you for sharing it so simply. Been on both sides and I completely relate with you just mentioned.
1. I would pick value add over valuation any day.
2. There is more freedom
3. It is more fulfilling
4. It is more sustainable
5. It’s a beautiful feeling to see that we are making some real difference in whatever small way.
6. The result from the effort is more tangible and fulfilling.
7. Work doesn’t seem like work. We work because we choose to and not have to.
My takeaways on this:
6 types of Business Models: 1) Manufacturing 2) Distribution 3) Services 4) Franchising 5) Aggregator Model 6) Freedom Business Model
Valuation game Versus the Value Add game
Valuation game
1) Platform based
2) Exit strategy
3) Pressure
4) No sustainability
5) Glorified in Media
Value Add Game
1) Based on results
2) No Exit strategy
3) Root will determine the fruits
4) Long term strategy
5) FBM – Niche fame
6) Higher chances of success
7)Sustainability
Value add game is certainly far better than the Valuation game
#ilhdeeplearner #ilhfamily
Topic: Valuation vrs value adds
We will cover the following;
-What are the 6 types of business models?
-What are the pros and cons of playing the valuation game?
-What makes the value-add game long term and sustainable
Mainstream media glorifies the start-ups and most of times tend to ignore those who really serves people and communities. Read further for more details.
What are the 6 types of business models?
– Manufacturing
– Distribution
– Service Oriented
– Franchise based – Biz in a box
– Aggregator based business model – Connecting Service provider and consumers
– Freedom Business Model(FBM) – knowledge based business model
Comparison b/w valuation and value add game:
– Root will determine its fruits
– Valuation is based on user base on the other hand value add based on results of customers
– Valuation is comprised of an angel invester and venture capitalist on marketing, tech, team and space for scaling, however in value add it goes into marketing, tech, teams
– Valuation is about multiplying money,exit value strategy and liquidation and value add is based on long term community strategy and more invested in company
– Valuation game is based on the valuation of the brand and company. It is not as glamorous as it looks on the media. You can not take the money out of the system. Valuation game is based on the user base.Angel investors are putting the money with an exit strategy based on the profit etc.
– It is like living inside a golden cage. Going to a mall and no one will recognize versus going to community
– Value add game is based on the values and constant feedback from the community, not based on the exit strategy. It is based on the long term community building strategy. You are reinvesting the money in scaling the business.
– Community based engagement and revenue. It is more sustainable and more predictable
Mainstream media should glorify the people the croreclub members created as part of the FBM model.
Valuation vs Value add game
6 Types of the business model –
Manufacturing
Distribution
Service-oriented
Franchise-based business
Aggregator based
Freedom Business model – Without infrastructure or investment
Comparison b/w valuation and value add game
The root will determine the fruit
Valuation game –
– Build products, Comprised of angle investors. Marketing, tech, teams
– Pressure to make numbers work.
– Glorified by Mainstream media.
– No freedom and High pressure
– Living inside a golden cage
Value add game
– Based on the results of the customers.
– The more results we bring the more customers
– It’s all about constant feedback and is
– Based on a long-term service strategy.
– Ensuring profitable
– Low overheads
– How to be frugal on initial expenses and move the right way.
– Have freedom
– The aspiration is to build a community which resonated with your vision
#ilhdeeplearner #ilhfamily
#ilhdeeplearner #ilhfamily
The Valuation Game, though glorified as the epitome of success in the media, is ultimately a golden cage. The investment is practically a glorified loan that the entrepreneur will have to repay through his blood, sweat and tears.
The Value Add Game is the path to freedom with all the name, fame and money thrown in.
The money is way better in the Value Add Game because whatever you make is all yours. You won’t have to share it with anyone else!
In the Value Add Game, the pressure to perform does not come from outside. In fact there is no pressure at all. You are inspired and driven by your own ideals of serving the community which comes from inside.
Valuation game is glorified, has an underlying exit door and low on sustainability.
Value Add Game, A Clear Winner!
1. The Value add game focuses on nurturing and providing value to the community!
2. Sustainable!
3. Economy Drivers
4. True Freedom
valuationgame vs value add game
6 value add co.
right mentors
manufactue
service
franchise
health,food
agreegator based
uber, ola
silicon valley
start up
freedom bs model
no products require etc.
many advantages
large customers
mass phenomenon
rare path
for other business
valuation game
difference to world mark zukerberg respected
.steve jobs-service
scalable.
user based ,create for co..
value add game
based on resuls of customers.
valuation game -money -mkt,
freedom-creator.constant feed back.
not exist facility.root determin the fruits. invester ,
sell webinar,pressure. invest .nuances money mgt .freedom b model -difference lives
fame-nitch fame. sustainable. -FBModel feed back,vision,growth higher. sustain higher high ticket.
6 Types of Business Models are :-
1. Manufacturing Companies
2. Distribution Model
3. Franchise Opérations / Business
4. Services Oriented Business
5. Agegrator based Business
6. Freedom Based Business
The valuation game is comprised of Angel Investors and responsibility of the Founder to ensure there is profitability, always pressure on returning the money and also need to increase customer base. They initially in the first year would have to go in for more Advertisements and show profitability and Value added Business Models like Freedom Based Business Model, provided employment to lot of people indirectly, also we pay taxes on time.
Valuation Game Vs Value-add Game
6 type business models:
Manufacturing – Need Manpower
Distribution
Services
Franchises
Aggregator
Freedom Business Model – Knowledge + Digital products + scalability
Root determines to fruits
Valuation:
1.. Based on Number of customer
2. Investment goes to Marketing, People, Space, Innovation,
3. Pressure to deliver borrowed money. Which is higher compared to Value addition game.
4. Less freedom
5. Sustainability Challenge higher compared to value addition
Value addition:
1. Based on results of customer
2. Investment goes to marketing, people, Innovation
3. Pressure is lesser than valuation more of internal pressure
4. More Freedom with Niche level Name
5. Sustainability is more as it’s running based on community feedback. More Predictable
Valuation business model vs Value added system
6 different types of business models
1. Manufacturing company
2. Distribution based
3. Services oriented
4. Franchise based
5. Aggregator based
6. Freedom business model ( knowledge and expertise and no employees)
Comparison
Roots will determine the fruits
Valuation business model is scalable system and platform based. Its depend on User based model.
Value added system has core value and has aim to give results to their customer.
Valuation business model is scaling the business.
Value added system is based on long term relationship within the community.
Valuation business model has more pressure for payback and borrowing from others. And profitable
Value added system has your profit investing back in business and right mentors.
Valuation business model has more glorified
Value added is not glorifying. This needs to be more glorified as they build the country for a better good
Valuation business model has no freedom. Golden cage
Value added system has freedom and niche fame no main stream game
Valuation business model has sustaining might be difficult for a long time.
Value add – community feedback and vision from them and modify to make it better..
Higher change to sustain.
Value added system have a sustainable loyal community and make the difference in the society.
#ILHdeeplearner
6 Types of Business Models
Manufacturing Companies
Distribution Companies
Service oriented MSME Companies
Franchise Based Business
Aggregator Based Business Model – Connecting service providers and consumers – like ola, uber
Valuation Game vs Value Add Game
The root will determine the fruits
valuation game – based on users, look at lifetime value,not as glamorous as it looks, mostly comprises of angel investors, venture capitalists, based on founders exit strategy
value add game – Value is based on results of the customers, community success, there is no exit strategy, more invested in community building
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MY TAKEAWAYS
6 Types of Business Models are :-
1. Manufacturing Companies
2. Distribution
3. Services Oriented Business
4. Franchise Business
5. Agegrator based Business
6. Freedom Based Business
Comparison b/w valuation and value add
🙆Root will determine the fruit.
Valuation who build product or service which is platform based which is scalable whereas value add is digital products.
🙃Valuation based on user base (not as glamourous as it looks on surface) on the other hand value add based on results of costumers.
🤐Valuation is comprised of an angel invester and venture capitalist on marketing, tech, team and space for scaling, however in value add it goes into marketing, tech, team.
😇Valuation is about multiplying money,exit value strategy and liquidation and value add is based on long term community strategy and more invested in company.
Valuation pressure to make numbers work (NO FREEDOM), on value add pressure is there but personal but no borrowing here investing profit into business.
🙂Moving money in right direction is pivotal for any business.
😊Need of the hour :Glorification of Value add.
🤓Aspiration:get visions from the community .Higher chance of loyal costumers. More sustainable and predictable. (Value add)
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#DEEP LEARNER
🔥𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗚𝗮𝗺𝗲 𝘃𝘀 𝗩𝗮𝗹𝘂𝗲-𝗔𝗱𝗱 𝗚𝗮𝗺𝗲
Mainstream should shift focus from Valuation Game to Value Add Game. They should glorify the people who Value Added People
– Manufacturing
– Distribution
– Services
– Franchise Based: No need to reinvent
– Aggregator Based: Connecting the service provider to Consumers (Uber / Ola)
– Freedom Business Model: No Office. More Scalable. Knowledge Based
– It takes time to get matured
– Root will determine the Fruit
Valuation Game
– Not as glamorous as it look like
– User based
– Angle investors or Venture Capitalist
– Back of the mind always to Exit fast
– Pressure to make the number work
– More Media shows
Value Add Game
– Based on Result
– Money goes into Innovation, Ads etc
– Long term Community Strategy
– Owners are more invested
– People paying tax
Media should glorify the Value Add Game rather than Start-up who plays Valuation game.
#ilhfamily #ilhdeeplearner
1. Valuation and value-added business are two different ball games.
2. both are platform based but different basis in the concept.
3.valuation requires more capital and pressure of venture capitalists/Creditors.
4. valuation makes more money and owner gets name and fame in media. lot of media hype but value added gives ‘lot of freedom. requires less on employees. But gives lot of freedom.
5. Value based businesses give lots of values. more satisfaction and fulfillment
6. Value added business don’t look for exit, they enjoy remaining in it till last of life.
My takeaways from this podcast are:
1. 6 types of business models
2. Comparison between valuation and value-added type of business.
3. The root will determine the fruits.
4. Valuation is user-based, investor-based, too much pressure, makes numbers work, and No freedom.
Hit or miss strategy to make it sustainable.
Good salary but no glamour.
5. Value added Game is dependent on customer results, Long term building based on the feedback received, No pressure as it is self-funded, Loyal customers, Recurring revenues, more sustainability and more predictable…and a lot more benefits.
Among the six noted Industries like manufacturing, distribution, Service, Franchise, Aggregated and Freedom business models, there is a sudden urge to convert themselves into big unicorns by launching a start-up and creating a place of their own. On the other hand, this Freedom business model is also making its niche in the world but from a very different perspective. And this is the biggest takeaway from this podcast and which i enumerate in the form of comparison. While the Valuation game is all about Numbers, profit maximisation and exit, Pressure to make numbers work, the golden cage syndrome and just a hit-or-miss game. On the other hand, the intent of a Freedom business model stems from COMMUNITY, community results, EQUITY, fREEDOM, NICH GAME and emerges as someone who grows with their community, makes difference in the community, pays taxes, participates in charity and creates a breed of people who are with the strongest and best roots which give out the sweetest fruits.
When I started my consulting, this was one of the most in-demand expectation .. help us get funding…
I was also attracted and thought it was natural and also beneficial to me if I could get these folks funding.. when I got into it and saw it closely…found it a so different game from what we see from outside.. most VCs expect 8/10 fail ..and recover from the 2..
pure gambling approach without any Values or Vision driving and on the top, IP stealing is the most common unethical approach..
I am personally 100% in-alignment with what you discussed in this podcast..
and so beautifully put in words..
Inspired me to write a post based on my experiences…
#ilhdeeplearner, #ilhsociety
My learnings on
Valuation game versus Value added game:
Glorifying the mainstream business area is based on how big is the startup funding. The real people who are making a difference to people’s lives, who are paying taxes on time and making a difference to the country.
6 Types of business models:
1. Manufacturing and distributing companies.
2. Distribution-based companies,
3. Service-oriented companies like MSMEs
4. Franchise-based business: Business in a box. Eg health franchise, food franchise. We just launch it with a proven system. For a franchise to be successful, we need the training of franchisees from franchiser, space, and manpower. We have the formula ready we need to copy it
5. Aggregator business model: very much in demand. Build a technology platform to connect service providers and consumers. Eg Swiggy. Uber etc.. Based on the projected potential it attracts Silicon Valley investors to invest money.
6. Freedom business model: Digital products and knowledge. No office space is required, Not much money is burnt, it takes a lot of time.
Facebook has grown by attracting investors.
Valuation business and value-added business.
Valuation game is startups who build a service scalable
Value added game is also platform and digital products, scalable.
Value action game has a market value, and have an exit strategy, and social pressure is there, it is based on the user base
In value add game is based on the results of value added to customers’ life, like what change is seen. This brings the value of the community building
Money goes to Marketing, tech, teams, and space in the valuation business. There is an exit strategy. We just need to show money spent on paper, and there is a lot of pressure on numbers. Less freedom is there. Need to give back the money to investors. It’s living in a golden cage. Difficult to sustain. It’s like hit or miss.
In Value add business needs marketing, team, and tech. There is no exit strategy. We own 100% of the equity. It is based on long-term community building, getting results for people. Pressure is on showing up every week, building community, scaling, etc. Here the money freedom is there. Niche fame is there.
This segment is however not glorified much, there is crores together revenue and tax payment. It is improved as per the need, and feedback, on the organic feedback, if you build value, people stay with you. There are fewer overheads, and more sustainable and predictable. It’s more fulfilling.
more value add business needed in the present world.
My learnings: 6 Types of Businesses 1. Manufacturing
2.Distribution- more space
3.Franchise
4.Services
5.Aggregator platform- connecting service providers and users
6.Freedom Business Model – Giving away your knowledge and expertise in form of products.
Entrepreneur in Valuation game may have intention like they want to make money and exit the game.
Valuation game is not as glamorous as it looks. In value add business the value of the ecosystem depends on results that its users get. Valuation game is mainly in VC and Angel Marketing, tech,teams and space. Value add game money goes in marketing, tech, teams.
Value add game is based on long term community strategy not with any exit strategy.
The Roots depends the fruits
Overall if we give importance to value add based entrepreneurs and make them grow they will help economy grow and that will help the company to grow.
#ILHDEEPLEARNER
6 types of business models
1.Manufacturing
2.Distribution companies
3.Services Oriented Business
4.Franchisee Business- Business in a box
5. Aggregator based business model- OLA, SWIGGY, UBER
6. FREEDOM Business Model- no office, no employee but just share your knowledge in to digital products and memberships, less investments.
Valuation Game vs Value Add Game
VG- build a product & service, Platform based, scalable & can go mass market
VA- Also Platform based, scalable and can go mass market but based on digital products, the value is based on the user-base,
VG- value is based on user base, they are burning money on acquiring users and calculate the customer LTV(Lifetime value) and that’s how they are worth of.
VA- the value of business is based on the results of the customer
VG- comprised of angel investors & venture capitalist, the money will go into marketing, tech, teams and space. VC’s always think of the exit strategy and how much money they could make when they exit
VA- money goes into marketing, tech, teams but no space needed. There is no exit strategy and its based around long term community strategy. Roots determined the fruits.
VG- There is a pressure to make the nos work. Its borrowed money on entrepreneurs and they need to return it back to investor. They need to understand the nuances of managing money and its come by experience and just having right mentors. Glorified on media platforms
VA- Pressure is here as well to make the nos but here is the freedom and its more on the personal sales. Which you can control and scale it easily. These are not glorified or featured on platform even though they are paying taxes on time and making big difference in the lives of people .
VG- Business owner does not have freedom but have fame in mainstream media.They can’t tell that they are living inside a golden cage.
This podcast helped me to understand what is valuation and valu added game clearly …
In which I have learned as follows below
Value added game is on freedom business model and it gives us to work on our passion in the form of niche and positioning ourself to found our community and reach out and help millions of people,with no infrastructure and no employees..stretching out time and changing people lifestyle and it is a long term sustainable business than other 5 valuation business like manufacturing, distribution,service oriented,franchise and Aggregator based business….
Thank you so much sir for tuning into this podcast which is found very useful and bulb on moment…
6Types of Business Model
1) Manufacturing Business
2) Distribution Based companies
3) Service Oriented Business
4) Franchise Based Business
5) Agregator Based Business Model
6) Freedom Business Model
Difference between Valuation Game and Value add Game
Valuation Game. Value Add Game
1) Non Sustainable. 1) Sustainable
(Like Nokia). (eg.Quantum Members)
2) Lots of Pressure. 2) No Pressure
3) No Freedom. 3) Freedom
4) Space Required. 4) No space req.
5) Funded by Big co. 5) Self Funded
6) Focussed on Business 6) Intended to
Scale Up add value
7) No results for 7)Focus to bring results
Valuation Game VS Value-Add Game
6 different type of Business models
1. Manufacturing
2. Distributions
3. Services orientation business
4. Franchise based business
5. Aggregator based business – hot business example Uber / OLA
6. Freedom Business model
Comparison
The roots will determine the fruits.
Happy Learning !
#ilhfamily #ilhdeeplearner
Happy learning, Sanjay!
#ilhdeeplearning
There are 6 types of businesses
1. Manufacturing Based Business – requires infrastructure, manpower, space
2. Distribution Based Business – requires infrastructure, manpower, space
3. Services Based Business – requires infrastructure, manpower, space
4. Franchise Based Business – business in a box, no need of re-invention, requires infrastructure, manpower, space, launch with proven systems
5. Aggregator Based Business – hottest thing right now, build tech platforms, connects consumer with service provider
6. Freedom Based Business – No office, no people, only knowledge, digital platform, scale globally.
Valuation game vs Value addition
Valuation game
1. Startups build product or service, platform based
2. Scalable
3. Based on user base
4. Burns money initially
5. Not so glamorous with respect to what we see
6. Comprised of angel investors, venture capitalists
7. Money is put into marketing, technology, teams and space
8. There is exit strategy or startup becomes a unicorn (jackpot)
9. Pressure to make numbers work, borrowed money is in play
10. Glorified everywhere
11. Business owner doesn’t have freedom – is in a GOLDEN CAGE
12. Hit and miss strategy which is not sustainable in long run
Value addition / Freedom Based Model
1. Based around digital space
2. Value in based in result of customers
3. The more communities or results you generate, the more robust the ecosystem’s value system becomes.
4. Based on results
5. Money is put into marketing, technology, teams and NOT in space
6. Constant feedback from community
7. Based on long term community strategy
8. There is no exit strategy
9. Pressure is there but more of a personal commitment
10. No borrowing of money is required, only re – investing profit for scaling the business
11. Needs to be glorified, not much attention is given to it
12. Business owner has freedom
13. Fame in the community (niche)
14. No hit and miss strategy, vision for community leads to higher chance of sustainability
NOTE:
1. ROOTS DETERMINE FRUITS
2. SMILE A LITTLE!
Thanks a ton, Prathit! More power to you 🙂
— Valuation Game Vs Value Add Game —
There are 6 types of Business Models
1. Manufacturing
2. Distribution
3. Franchise-based business
4. Agrigator-based business model
5. Freedom Business model
But the major difference between the first 4 and the last one is huge. The first four are valuation business models where as the last one is the value add business model.
This freedom business model gives us freedom. Because the capital we use in our business to grow is our own capital. We don’t lend any money from any one. neither we are answerable to any one.
#ILHDEEPLEARNER
Thanks a ton, Samir!
#ilhfamily #ilhdeeplearner
Valuation or value added game?
Enterpreneurs are glorified by the media only as those who do a start-up.
6 types of business models
1. Manufacturing model
2. Distributing model
3. Services model
4. Franchise-based model
5. Aggregator-based model
6. Freedom business model
Freedom business model is scalable, low on capital, low investment, low risk, low curve of profit generation
The root will determine the fruits…
Valuation based on mass market user quantity
Value addition based on user results
Value add money goes into operations. There is no exit strategy in the freedom business model. This is long-term. There is no option to cash out of generating a certain level. There is no pressure for returning the money to investors. There is pressure to bring results. So, it is more personal and very different from the pressure of taking somebody else’s money. Reinvesting profits back into this business to fund its growth.
Buisness owners in the other business models are not free. But the freedom business model gives the business owner more power inside their community with more freedom.
Freedom business model has higher chance of getting trusted sustainable customer base. The system is more sustainable and predictable. There is not much effort into selling recurring high ticket to existing clients.
The value add game can actually be a great contributor to the conutry’s economy. The business owner of this game can have a better chance of becoming a high tax payer.
#ilhfamily #ilhdeeplearner
Great to have you in the community, Ruby.
🔥🔥valuation verses value add game 🔥🔥
6 types of business models
1. Manufacturing model
2. Distributing model
3. Services model
4. Franchise-based model
5. Aggregator-based model
6. Freedom business model
Thanks to your mentors that they gave you the mindset of value add game…
Platform based is very scalable ….
Valuation game is depend on number of customer you have .. Market capture …. Mainly funding and angel investor … Main stream fame.. Glorified …. Lots of pressure to make number works …. No freedom
Value add game … You need to put in money in Ads… Tech and tools … And virtual teams … Its depends the result your customer Create ….. Micro niche fame …. Start of that small community .. More satisfying ….having Freedom to do what’s you want … Doing things at your own pace …
Long term community strategies…
Holding it like a family …
Having a right mentor …
Higher chance to sustain by building a community of raving fans … Loyal community ..
I am for value add games …
Helping my students to get more result
#ilhfamily
#ilhdeeplearner
Thanks a ton, Meenu.
Amazing…superb numbers so much to learn. It’s a win win model.
SIDZ believes:
The start-up game is based on user base. There would be a lot of pressure to devise profitable business strategies and not falter on the loan borrowed. FREEDOM is the operating word in the value-add game. Profits are reinvested in the business to enhance the product offering and aiding in the growth of the RESULTS of the community members.
Lean entrepreneurs in the knowledge business are seldom glorified in the mainstream media. They build impactful digital learning products, form an uplifting community, make a difference in people’s lives, contribute to charity and development efforts and pay taxes on time. This will certainly help any nation’s creativity and innovation health thereby contributing to significant economic growth.
My View: The start-ups (valuation game), once they graduate to acquire a strong footing in their target market, would have developed a lot of muscle power to impact and drive significant value in the society.
Yes, agree with on the FREEDOM part. Value-add game players (lean entrepreneurs building digital learning products) have the freedom to run the business living anywhere in the world with TIME at their disposal.
Takeaways
=> Nice podcast explaining the differences between the Valuation and the Value Add
=> Media – not glorifying the Value Adders is a sad part but over the time, things should start shifting where Value Adders will also be on limelight
=> Now clearly understood which is better among and Valuation vs. Value Addition. I was also targeting for the valuation and didn’t workout for my personal reasons but now I’m happy that I’m on the right track by being in your community Sidz to play the Value Added Game. Thank you and deep gratitude to you.
The terms are all new. Whatever little I understood :
Meaning of…
Value – the amount of money that something is worth
Valuation – the economic value of a company
Value – add -something that adds value, benefit or enhancement
Thus,
Valuation game – Starts with an idea of building a unique product or service but the ultimate aim is profits through number addition rather than value creation.
Value-add game – Starts with the idea of adding value through knowledge- based digital products or services with the ultimate aim of adding value and profits are but a byproduct.
Thank you Sid for beautifully explaining 6 business models & clear distinction between valuation & value add game. Liked this million dollar statement ” Roots will determine the fruits”
6 types of business models
1. Manufacturing ( Need more manpower & infrastructure)
2. Distribution ( Need more manpower & infrastructure)
3. Services oriented ( provide services)
4. Franchise-based ( many factors involved like right location, space, etc)
5. Aggregator based
6. Freedom business model ( Freedom to do business, no office & employees)
Valuation Game :-
1. Startup to build a product/ service which is platform-based, scalable, goes to mass market.
2. It tries to get number of users.
3. Comprised of angel-investor and capitalists. Capital used in marketing, technology, team and space.
4. Capitalists always think about exit strategy.
5. There is a pressure to make numbers work as capital comes from borrowing from capitalists.
6. These have no Freedom but achieve mainstream fame. Mainstream media doesn’t focus on value of tax paying etc.
7. Hetoromous to make sustainable and set on fame for long time.
Value Add Game :-
1. Platform-Based and scalable but based on digital product.
2. Value is based on the results of the customers.
3. Invest on marketing, technology, team, but no space required.
4. Built based on constant feedback from the community. There is no exit strategy here.
5. There is a pressure to make numbers work, but it is more a personal game. Here, reinvestment of profit is done in business.
6. Niche fame can be received. Adding value by paying tax can be done.
7. Aspiration is to build community, build community and get visions from community so that you can make product much better. Higher chance of success for organic growth based on feedback of community and building community on loyal customers.
#ILH Deep Learner