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?
siddharth rajsekar
siddharth rajsekar

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Sidz is a college drop-out, "musician turned digital geek", a spiritually grounded minimalist, father of 2, and husband of a loving wife. He founded the Internet Lifestyle Hub in 2018 to fix the education and employment system for good. Currently, he is helping over 20,000+ coaches, teachers, and experts digitize their knowledge. He’s an international best-selling author of the book You Can Coach and is on a mission to help 1,000,000 people live a lifestyle of freedom!

    109 replies to "Valuation Game vs Value-Add Game"

    • Visweswaran Sayee

      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.

    • Sumesh Chhabria

      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

    • Firdous Guffor Misgar

      # 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

    • Debasmita Basu

      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

      • Parmvir Singh

        Keep it up Debasmita

      • Siddharth Rajsekar

        Thanks a ton, Debasmitha! More power to you! I’m glad you found this learning journey valuable! More to unfold 🙂

        • Debasmita Basu

          Thank you Siddharth and Parmvir , Siddharth for the appreciation I will definitely learn and explore more to deliver more value to the World .

    • PM

      Very valuable

      • Siddharth Rajsekar

        Thank you.

      • Ananya Ohdedar

        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

    • Ganesh Rawat

      #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

    • Vijay Acharya

      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

    • sridhar kinhal

      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

    • Reema Noor

      #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.

    • Ashvin Sonagara

      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

    • Prem Alvares

      #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

    • Lalit Hundalani

      #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..

    • Sunilpshatty

      #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

    • Parmvir Singh

      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.

    • Shariwa Joshi

      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

    • Dr. Ritu Goyal

      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

    • Karthik Sundararaman

      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)

    • Devanand

      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.

    • Sajana

      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.

    • Farhan Rahman

      #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

    • Ashwini Borkar

      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.

    • Raj Bharti

      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.

    • Geetha_MenopauseCoach

      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.

    • Rahul George

      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

    • Sunil Chaudhary

      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

    • Sridhar Pai Tonse

      #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.

    • Geetha_MenopauseCoach

      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.

    • Anshuman Khullar

      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.

    • Tauqueer Ahmed

      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)

    • Shilpa Hiremath

      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.

    • Shankaran Paramasivan

      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

    • Dina Swargiari

      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.

    • SANGHAMITRA SABAT

      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.

    • praful C Varma

      #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.

    • Digital NiGo

      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

    • Sanjay Karn

      # 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.

    • Mayur Pote

      Glad that you shared this. It gives us direction to think for our future in business. Grateful to you.

    • Neeraj Kumar

      “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

    • Dr.G.Thimmaraya Gowda

      It makes it more clear that Freedom Business Model is Best suited for Me.

    • ALOK MITTAL

      Superb knowledge
      really crisp and clear
      MPTY SIDZ

    • Ravi Kishore

      #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

    • Santosh Acharya

      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

    • shweta Pandey

      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.

    • Shilpa Hiremath

      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.

    • kalpesh darji

      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

    • Pankhuri Omar

      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

    • Himanshu Bisht

      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.

    • Ishaq Ali Khan

      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.

    • Vijay Sabale

      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

    • mahesh deshmukh

      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.

    • Dr Ramesh C Raina

      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

    • Kallol Choudhury

      The benefits and risks of a vlaue add vs a valuation model are nicely brought out.

    • Kapeel Gupta

      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

    • mahesh deshmukh

      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.

    • Valerian Sequeira

      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.

    • Nickyta Chaurasiya

      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.

    • Nitin Mahajan

      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 !!!

    • Hemant Deshpande

      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.

    • arvind jain

      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

    • Riddhi Deorah

      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.

    • Govindraj

      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

    • Girija Sankar

      #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.

    • Badarinath Gella

      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

    • Prabir Chatterjee

      #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.

    • Rohini Gupta

      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

    • Pasadika Mindfulness

      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.

    • Sunder Raman

      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.

    • Mahendran Rajaiah

      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

    • Swati Tripathi

      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

    • Akshay Jalan

      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

      #ilhfamily #ilhdeeplearner

    • MUKESH

      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)
      #ILH
      #DEEP LEARNER

    • TAPAS CHANDRA

      🔥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.

    • Janardan Kar

      #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.

    • BK Priyadarshini

      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.

    • Anuradha Deshpande

      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.

    • Rajneesh Jain

      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…

    • Dr. GN Suma

      #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.

    • Rahil Ahmed S

      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.

    • Vivek

      #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.

    • Shanthi Mangilal

      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…

    • Simmi Taneja

      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

    • Sanjay Sethi

      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

    • PRATHIT KUMAR

      #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!

    • Samir

      — 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

    • Ruby Yogi

      #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

    • Meenu Chaurasiya

      🔥🔥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

    • ASHIMA GUSAIN

      Amazing…superb numbers so much to learn. It’s a win win model.

    • Parikshit Sreedhar

      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.

    • Barathkumar Karunanidhi

      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.

    • Prachi Joshi

      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.

    • Prashant Chitnis

      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

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