hello everybody tom Ellsworth here and
welcome to case studies with the biz doc
this week we’re going to be talking
about Groupon and digital coupons you
know when you look at technology there’s
been so many ways that technology has
made life better for us and it’s it’s
infiltrated and changed a bunch of
legacy industries and those old paper
coupons that they’re still around but
coupons is one area where you may have
an app on your phone from Target from
Walmart you get your coupons that way
but there’s still those places you can
clip your coupons but that used to be
the only way to do it and going back
several years
remember used to buy your Thursday paper
because that was when all the grocery
coupons were in there I remember my mom
did that and people I knew did that heck
in college I did that all the Thursday
papers here let’s cut the coupons out
and then you go get stuff at the store
there’s basic stuff then there were also
member entertainment books entertainment
books for full coupons you got people
from the high school like the high
school football team or the cheerleaders
trying to sell you a coupon book for 15
bucks you tear the pages out for
restaurants or groceries whatever it was
and finally they gave way to digital
coupons because hey everybody’s got
email and we can track and learn the
kind of things you like and determine
what coupon we send you and when we send
it and that was the story of Groupon a
pioneer in the digital coupon area so
the two points are going to learn today
is one about business model you got to
know what you’re doing because
replicating a flawed business model just
means if you’re wrong you’ll lose money
faster and if that’s investor money
that’s even worse
the second point is greed can be bad
especially when it’s married to hubris
Oh hubris well if any of you saw the
Nokia case study there’s that word again
all right so let’s dive in and let’s go
to the beginning of the story of Groupon
Groupon is founded by a guy named Andrew
Mason and the company he founded turned
into Groupon but that’s not what he
started with he dropped out of school
because he had an interesting idea to
fund a business for online collective
actions and collective fundraising and
it was called the point and he had a
friend of his who was
investor who put between four and five
million dollars into this thing called
the point and they took a shot at it it
failed and then he took the money that
was left over and he founded Groupon and
Groupon is as you might imagine is a
merge of the words group in coupon or
coupons for groups and their first deal
that they did the daily deal where they
would email it out to people believe it
or not was half-price offer for pizzas
that were delivered from the pizza guy
that operated on the first floor of
their building in Chicago well that led
to others and before you knew it this
thing was taking off and in no time
whatsoever digital coupons were in
everybody’s email box it was a viral
start because people would share with
their friends hey check this out go to
Groupon and give them your email address
and tell them what you like and tell
them what city you’re in and all of a
sudden people started getting coupons
well from the start in Chicago which is
where it started they expanded to other
cities and the traction was amazing and
they were soon touting these stats that
millions and millions of consumers
emails and that they had purchased
history and they had all the stuff on
their servers you know that was eerily
similar you know what we call vanity
stats bragging about statistics that may
or may not mean there’s a business model
there so there’s an important lesson
it’s like people that say oh I have half
a million Twitter followers you do when
you send out a tweet how many people
respond and you’ll find out that
sometimes you may have a half a million
total Twitter followers going back since
the dawn of your Twitter account but
they’re not really active they’re not
really paying attention what was the
same case for Groupon Groupon is only
going to work if people are active and
paying attention and they do something
with the coupon because the way it
worked is Groupon you’re made a deal
with a merchant like a pizza place and
if you use the coupon Groupon got a
piece of the action as the person that
did the email system and everything and
sent you the coupon that you used to buy
the pizza and that’s how they made their
money that’s how they got a cut but
anyway the traction was crazy it was
just off the hook and you know they were
just burning through money and just
blowing through New City
after new city and just expanding a lot
of money came into it – which was pretty
amazing check this out
in December of 2009 and you know after
2008 they got off that crazy start
suddenly they raised thirty million
dollars in December 2009 it was called
Series B B which is the second letter of
the alphabet and people that are not
familiar venture capital financing that
was the second investment they got then
in April of 2010 remember December of oh
nine thirty million dollars April of
2010 a hundred and thirty five million
dollars in April then in December of
2010 Google says you know what that is a
big pile of consumer information I did
consumer information because I can do
all kinds of things with a you know
Google they’re like the big giant
information mammoths and they knew what
they were going to do they also thought
there might be some money in those
coupons or like hey we got a lot date
over here maybe we could put all this
together so they go to offer Groupon
before their second birthday six billion
dollars they offer for Groupon before
their second birthday right six billion
dollars let me ask you a question if
somebody offers you six billion dollars
for anything before your second birthday
you should say yes right remember that
you may remember there’s an old classic
movie ghostbusters not the new one that
came out but the original ghostbusters
there’s the scene where they’re up on
the roof of this building and this this
demon from the other world
asked them are you a god and the guy
says no and then he blows fire on them
they’re almost blown off the side of the
building they almost died and then one
guy says to his friend the next time
someone asks you if you’re a god you say
yes well the next time Google asks you
if you want six billion dollars you say
yes so Groupons board turns down the six
billion dollars from Google turns down
when I hear someone turns down six
billion dollars I need a drink so they
come back and they said you know what we
need to do we need to go public so they
made plans to go public and they
announced that they were going to go
public on the u.s. Nasdaq stock market
for a deal size of half a billion
dollars that would make the company
valued about eleven point two billion
dollars so I suppose okay if you thought
you could go public and the company be
worth 11 billion maybe you don’t sell to
Google for 6 billion but still as they
will find out it would have been far
smarter to do that and we’ll get to the
reasons why so there were all kinds of
questions I mentioned those financials
there were questions swirling around
about their financials and about how
they calculated these individual Groupon
deals and what that meant they also were
having trouble keeping some senior
executives which is very important when
you’re going to go public on the stock
market because the stock market wants to
see a good CEO and a bunch of stable
people running the company and if you
can’t hold on to your cos they keep
leaving the company they went through I
think two cos the year they’re trying to
go public that’s kind of a red flag to
people saying well what’s going on this
doesn’t look like stability to me but
nonetheless they went forward well some
keen-eyed financial people started
asking questions about the documents
that they had put out with regard to
going public and one of them they
actually came back and said we made a
mistake
we told you that we did seven hundred
and fourteen million in 2010 sales we
actually only did three hundred and
twelve million how do you make a four
hundred million dollar mistake well that
sort of thing can end you up in court or
end you up in prison for securities
fraud but nonetheless in response to the
furor despite all these stories there
was still a lot of people that wanted
Groupon to go public and a lot of people
going to make money on that and so they
took the CEO this young hipster kid
Andrew Mason they cleaned him up made
him shave and they put him in a suit and
tie doing what is now a very famous
video of talking about the IPO and going
on the stock market for Groupon and so
for the first time in his life he’s
doing like a big adult presentation
I don’t know if it’s the first time in
his life but everyone that saw it said
well that’s kind of where they didn’t
seem like the CEO I know but they were
trying to clean up the image clean up
the mistake about Miss stating the
income and all that and despite all of
these negative things that are against
it in December for 2011 they went public
and they didn’t raise the five hundred
million dollars they raised seven
hundred million dollars that’s how much
you know fewer in the marketplace and
this the fury of the marketplace and I
don’t mean anger fury I mean it was like
a storm of investors that wanted in on
this deal despite all the things they
regret so the first day they go out
they’re actually worth twelve point
seven billion their very first day
however there’s a problem
once you’re public on the stock market
you have to go out in a quarterly
earnings report and you’re transparent
and you by law have to make these
reports and disclose certain things when
they started doing that guess what
people started finding out they started
finding out that sometimes consumers
only bought one or two Groupons
and then got tired of the Groupon being
in their email and thought it was spam
treated as spam and unsubscribed right
then there was retention of merchants
some of the merchants says hey Groupon
is really picky about the deal it’ll do
it won’t do a two-for-one free pizza it
will only do a deal on a large free
pizza I’m kind of frustrated by this so
some of the merchants they had trouble
retaining the merchants because they
said you know I’m done with this and
also you’re just sending emails to a lot
of customers already know and so I love
to do nice things for my customers but
now I’m just given everybody that walks
in the door you know a deal and I want
to step back from that a little bit so
the merchants had issues with it well
guess what merchants have issues
customers have issues Groupon is in the
middle just building the market emailing
the customer to use this coupon is
Groupon to go to the merchant and if you
get problems of both sides and you’re
having issues of with your financials
and people think that the way you’re
counting is a little weird guess what
happens to your stock price in one year
since they went public the stock lost 85
percent of its value
85% in one year from November of 11 to
the end of 2012 lost 85 percent of its
value and it was only worth a little
more than two billion dollars hear that
again at the end of one year on the
stock market it was worth two billion
dollars right there’s a word for it a
special technical word when your stock
drops 85 percent in one year from your
IPO and that word is damn you know
somebody’s going to get fired well guess
what in March in March of the following
year one year and four months after they
went public the board fired Andrew Mason
the kid who had built Groupon the kid
who had been a little sketchy with his
finances the kid that couldn’t hold the
senior executives the kid that had
retention problems with merchants the
kid that had yeah no words there was a
list of reasons and it probably wasn’t a
long meeting it was basically Andrew
were done here see you later and that
was that so after he was fired the stock
went up a little bit and they had a new
management team and Groupon is still out
there right now trying to make a go of
it and actually they’re doing ok and
they’re profitable but it’s a whole
different business and it’s worth barely
2 billion dollars now and a lot of
people think back to that day when
Groupon had a knock at the door and it
was Google offering them six billion
dollars they look back to that day and
say why didn’t we take it six billion
dollars when we were barely two years
old what were we smoking well maybe that
was the problem maybe you were smoking
who knows but there’s something we want
to talk about and that is that the
business model see Groupon is probably a
bad example or an example of a bad
player in the digital coupon market but
the digital coupon market didn’t turn
out the way everybody thought it would
because people didn’t really assess the
business model of digital coupons for
instance a business model is you get my
mom to use coupons over and over again
and she’s a regular customer using the
coupons and there’s vendors and in
stores and things that are regular
vendors and it creates a recurring
economy well a lot of this was people
would try and die or a merchant would
try and die I hope that makes sense you
see what I’m saying try and die come and
go well now you’re just constantly
trying to find new customers working
yourself to the bone this very
interesting thing back in 2010 when
Groupon was all the buzz was coming up
there’s a little company in Seattle
called LivingSocial they were also doing
daily deals
well LivingSocial Amazon invested one
hundred and seventy five million in
LivingSocial in 2010 and then in the
third quarter of 2012 when all the fun
was happening with Groupon Amazon wrote
off a hundred and sixty nine million
dollars of that investment so big
company sometimes by companies and write
it off I think you may have remembered
in the nokia case study I did how
Microsoft wrote off billions of dollars
from its purchase of Nokia well here’s
another example accept Amazon’s a little
smarter number one they spent less going
in and number two when it was time to
give up they gave up and when when the
king of online sales Amazon can’t get
jacked up about it and starts writing it
off and backing off
you know there’s maybe there’s more of a
problem than a company’s involvement
maybe it’s just that Digital couponing
was never going to be the big crazy
thing of the future that everybody
thought so guess what it was the
business model and it was studying the
business model and being honest about
what would get merchants to stay in the
game what would get consumers to stay in
the game and the very end of the story
is a shocking one in October of 2015
Amazon exited daily deals completely and
said that the Amazon local daily deal
and LivingSocial they were done with it
and they laid off some staff and said
hey this is not a space that’s working
out and there’s nothing here then this
year Groupons new management bought what
was left of LivingSocial I never saw a
price announced maybe I missed it
somewhere but to me it was more like
kind
Groupon buying a dying dog they bought
LivingSocial from down the street and
saw the two players and digital coupons
are under run rough Groupon is
profitable but worth maybe one third of
whether it was when Google came to the
door and maybe 1/6 of what it was when
it went public so there’s something to
think about in this case study and that
is business models you can see how a lot
of companies got jacked up about digital
coupons and a lot of money was invested
and a lot of people went crazy and then
a lot of money was lost and then there
was also the CEO that had his own issues
and misstating financial reports and
things like that that was a lot of
things and if you want to read all about
the Groupon story go over to Business
Insider one day and pull their little
ebook on Groupon and it’s free and you
can read the whole long story and all
the gossip but beyond the gossip this is
a lesson of business model and that you
should spend a lot of time on the
business model and make sure that an
early yes you may seem in the market
whether it’s vanity stats or it’s a real
honest a good business model to be had
and I’ll recommend a book well my
favorite books is this one business
model generation and it was written by
Alexander Osterwalder I always look at
his name so I always scared I’m gonna
mispronounce it but you can find this
and go give it a read because this is
inexpensive insurance and it’s one of
the things that could help you make a
great business model it’s probably good
practice as an entrepreneur to read
books like this and be up to speed on
what great business models are all about
because what you don’t want to be is a
great business a bad business model
that’s nothing more than buzz on day one
that turns into a train wreck later on
because whether you’re Groupon or Amazon
you could find yourself in a space that
just doesn’t take off and so that’s the
story a Groupon that’s alright that’s it
for today and of course as we say every
week please subscribe the value tainment
and this is where you’re going to find
the best content on the internet for
entrepreneurs and until next time I’m
Thomas Wirth and I hope I left you
better than I found you
you [Music]
welcome to case studies with the biz doc
this week we’re going to be talking
about Groupon and digital coupons you
know when you look at technology there’s
been so many ways that technology has
made life better for us and it’s it’s
infiltrated and changed a bunch of
legacy industries and those old paper
coupons that they’re still around but
coupons is one area where you may have
an app on your phone from Target from
Walmart you get your coupons that way
but there’s still those places you can
clip your coupons but that used to be
the only way to do it and going back
several years
remember used to buy your Thursday paper
because that was when all the grocery
coupons were in there I remember my mom
did that and people I knew did that heck
in college I did that all the Thursday
papers here let’s cut the coupons out
and then you go get stuff at the store
there’s basic stuff then there were also
member entertainment books entertainment
books for full coupons you got people
from the high school like the high
school football team or the cheerleaders
trying to sell you a coupon book for 15
bucks you tear the pages out for
restaurants or groceries whatever it was
and finally they gave way to digital
coupons because hey everybody’s got
email and we can track and learn the
kind of things you like and determine
what coupon we send you and when we send
it and that was the story of Groupon a
pioneer in the digital coupon area so
the two points are going to learn today
is one about business model you got to
know what you’re doing because
replicating a flawed business model just
means if you’re wrong you’ll lose money
faster and if that’s investor money
that’s even worse
the second point is greed can be bad
especially when it’s married to hubris
Oh hubris well if any of you saw the
Nokia case study there’s that word again
all right so let’s dive in and let’s go
to the beginning of the story of Groupon
Groupon is founded by a guy named Andrew
Mason and the company he founded turned
into Groupon but that’s not what he
started with he dropped out of school
because he had an interesting idea to
fund a business for online collective
actions and collective fundraising and
it was called the point and he had a
friend of his who was
investor who put between four and five
million dollars into this thing called
the point and they took a shot at it it
failed and then he took the money that
was left over and he founded Groupon and
Groupon is as you might imagine is a
merge of the words group in coupon or
coupons for groups and their first deal
that they did the daily deal where they
would email it out to people believe it
or not was half-price offer for pizzas
that were delivered from the pizza guy
that operated on the first floor of
their building in Chicago well that led
to others and before you knew it this
thing was taking off and in no time
whatsoever digital coupons were in
everybody’s email box it was a viral
start because people would share with
their friends hey check this out go to
Groupon and give them your email address
and tell them what you like and tell
them what city you’re in and all of a
sudden people started getting coupons
well from the start in Chicago which is
where it started they expanded to other
cities and the traction was amazing and
they were soon touting these stats that
millions and millions of consumers
emails and that they had purchased
history and they had all the stuff on
their servers you know that was eerily
similar you know what we call vanity
stats bragging about statistics that may
or may not mean there’s a business model
there so there’s an important lesson
it’s like people that say oh I have half
a million Twitter followers you do when
you send out a tweet how many people
respond and you’ll find out that
sometimes you may have a half a million
total Twitter followers going back since
the dawn of your Twitter account but
they’re not really active they’re not
really paying attention what was the
same case for Groupon Groupon is only
going to work if people are active and
paying attention and they do something
with the coupon because the way it
worked is Groupon you’re made a deal
with a merchant like a pizza place and
if you use the coupon Groupon got a
piece of the action as the person that
did the email system and everything and
sent you the coupon that you used to buy
the pizza and that’s how they made their
money that’s how they got a cut but
anyway the traction was crazy it was
just off the hook and you know they were
just burning through money and just
blowing through New City
after new city and just expanding a lot
of money came into it – which was pretty
amazing check this out
in December of 2009 and you know after
2008 they got off that crazy start
suddenly they raised thirty million
dollars in December 2009 it was called
Series B B which is the second letter of
the alphabet and people that are not
familiar venture capital financing that
was the second investment they got then
in April of 2010 remember December of oh
nine thirty million dollars April of
2010 a hundred and thirty five million
dollars in April then in December of
2010 Google says you know what that is a
big pile of consumer information I did
consumer information because I can do
all kinds of things with a you know
Google they’re like the big giant
information mammoths and they knew what
they were going to do they also thought
there might be some money in those
coupons or like hey we got a lot date
over here maybe we could put all this
together so they go to offer Groupon
before their second birthday six billion
dollars they offer for Groupon before
their second birthday right six billion
dollars let me ask you a question if
somebody offers you six billion dollars
for anything before your second birthday
you should say yes right remember that
you may remember there’s an old classic
movie ghostbusters not the new one that
came out but the original ghostbusters
there’s the scene where they’re up on
the roof of this building and this this
demon from the other world
asked them are you a god and the guy
says no and then he blows fire on them
they’re almost blown off the side of the
building they almost died and then one
guy says to his friend the next time
someone asks you if you’re a god you say
yes well the next time Google asks you
if you want six billion dollars you say
yes so Groupons board turns down the six
billion dollars from Google turns down
when I hear someone turns down six
billion dollars I need a drink so they
come back and they said you know what we
need to do we need to go public so they
made plans to go public and they
announced that they were going to go
public on the u.s. Nasdaq stock market
for a deal size of half a billion
dollars that would make the company
valued about eleven point two billion
dollars so I suppose okay if you thought
you could go public and the company be
worth 11 billion maybe you don’t sell to
Google for 6 billion but still as they
will find out it would have been far
smarter to do that and we’ll get to the
reasons why so there were all kinds of
questions I mentioned those financials
there were questions swirling around
about their financials and about how
they calculated these individual Groupon
deals and what that meant they also were
having trouble keeping some senior
executives which is very important when
you’re going to go public on the stock
market because the stock market wants to
see a good CEO and a bunch of stable
people running the company and if you
can’t hold on to your cos they keep
leaving the company they went through I
think two cos the year they’re trying to
go public that’s kind of a red flag to
people saying well what’s going on this
doesn’t look like stability to me but
nonetheless they went forward well some
keen-eyed financial people started
asking questions about the documents
that they had put out with regard to
going public and one of them they
actually came back and said we made a
mistake
we told you that we did seven hundred
and fourteen million in 2010 sales we
actually only did three hundred and
twelve million how do you make a four
hundred million dollar mistake well that
sort of thing can end you up in court or
end you up in prison for securities
fraud but nonetheless in response to the
furor despite all these stories there
was still a lot of people that wanted
Groupon to go public and a lot of people
going to make money on that and so they
took the CEO this young hipster kid
Andrew Mason they cleaned him up made
him shave and they put him in a suit and
tie doing what is now a very famous
video of talking about the IPO and going
on the stock market for Groupon and so
for the first time in his life he’s
doing like a big adult presentation
I don’t know if it’s the first time in
his life but everyone that saw it said
well that’s kind of where they didn’t
seem like the CEO I know but they were
trying to clean up the image clean up
the mistake about Miss stating the
income and all that and despite all of
these negative things that are against
it in December for 2011 they went public
and they didn’t raise the five hundred
million dollars they raised seven
hundred million dollars that’s how much
you know fewer in the marketplace and
this the fury of the marketplace and I
don’t mean anger fury I mean it was like
a storm of investors that wanted in on
this deal despite all the things they
regret so the first day they go out
they’re actually worth twelve point
seven billion their very first day
however there’s a problem
once you’re public on the stock market
you have to go out in a quarterly
earnings report and you’re transparent
and you by law have to make these
reports and disclose certain things when
they started doing that guess what
people started finding out they started
finding out that sometimes consumers
only bought one or two Groupons
and then got tired of the Groupon being
in their email and thought it was spam
treated as spam and unsubscribed right
then there was retention of merchants
some of the merchants says hey Groupon
is really picky about the deal it’ll do
it won’t do a two-for-one free pizza it
will only do a deal on a large free
pizza I’m kind of frustrated by this so
some of the merchants they had trouble
retaining the merchants because they
said you know I’m done with this and
also you’re just sending emails to a lot
of customers already know and so I love
to do nice things for my customers but
now I’m just given everybody that walks
in the door you know a deal and I want
to step back from that a little bit so
the merchants had issues with it well
guess what merchants have issues
customers have issues Groupon is in the
middle just building the market emailing
the customer to use this coupon is
Groupon to go to the merchant and if you
get problems of both sides and you’re
having issues of with your financials
and people think that the way you’re
counting is a little weird guess what
happens to your stock price in one year
since they went public the stock lost 85
percent of its value
85% in one year from November of 11 to
the end of 2012 lost 85 percent of its
value and it was only worth a little
more than two billion dollars hear that
again at the end of one year on the
stock market it was worth two billion
dollars right there’s a word for it a
special technical word when your stock
drops 85 percent in one year from your
IPO and that word is damn you know
somebody’s going to get fired well guess
what in March in March of the following
year one year and four months after they
went public the board fired Andrew Mason
the kid who had built Groupon the kid
who had been a little sketchy with his
finances the kid that couldn’t hold the
senior executives the kid that had
retention problems with merchants the
kid that had yeah no words there was a
list of reasons and it probably wasn’t a
long meeting it was basically Andrew
were done here see you later and that
was that so after he was fired the stock
went up a little bit and they had a new
management team and Groupon is still out
there right now trying to make a go of
it and actually they’re doing ok and
they’re profitable but it’s a whole
different business and it’s worth barely
2 billion dollars now and a lot of
people think back to that day when
Groupon had a knock at the door and it
was Google offering them six billion
dollars they look back to that day and
say why didn’t we take it six billion
dollars when we were barely two years
old what were we smoking well maybe that
was the problem maybe you were smoking
who knows but there’s something we want
to talk about and that is that the
business model see Groupon is probably a
bad example or an example of a bad
player in the digital coupon market but
the digital coupon market didn’t turn
out the way everybody thought it would
because people didn’t really assess the
business model of digital coupons for
instance a business model is you get my
mom to use coupons over and over again
and she’s a regular customer using the
coupons and there’s vendors and in
stores and things that are regular
vendors and it creates a recurring
economy well a lot of this was people
would try and die or a merchant would
try and die I hope that makes sense you
see what I’m saying try and die come and
go well now you’re just constantly
trying to find new customers working
yourself to the bone this very
interesting thing back in 2010 when
Groupon was all the buzz was coming up
there’s a little company in Seattle
called LivingSocial they were also doing
daily deals
well LivingSocial Amazon invested one
hundred and seventy five million in
LivingSocial in 2010 and then in the
third quarter of 2012 when all the fun
was happening with Groupon Amazon wrote
off a hundred and sixty nine million
dollars of that investment so big
company sometimes by companies and write
it off I think you may have remembered
in the nokia case study I did how
Microsoft wrote off billions of dollars
from its purchase of Nokia well here’s
another example accept Amazon’s a little
smarter number one they spent less going
in and number two when it was time to
give up they gave up and when when the
king of online sales Amazon can’t get
jacked up about it and starts writing it
off and backing off
you know there’s maybe there’s more of a
problem than a company’s involvement
maybe it’s just that Digital couponing
was never going to be the big crazy
thing of the future that everybody
thought so guess what it was the
business model and it was studying the
business model and being honest about
what would get merchants to stay in the
game what would get consumers to stay in
the game and the very end of the story
is a shocking one in October of 2015
Amazon exited daily deals completely and
said that the Amazon local daily deal
and LivingSocial they were done with it
and they laid off some staff and said
hey this is not a space that’s working
out and there’s nothing here then this
year Groupons new management bought what
was left of LivingSocial I never saw a
price announced maybe I missed it
somewhere but to me it was more like
kind
Groupon buying a dying dog they bought
LivingSocial from down the street and
saw the two players and digital coupons
are under run rough Groupon is
profitable but worth maybe one third of
whether it was when Google came to the
door and maybe 1/6 of what it was when
it went public so there’s something to
think about in this case study and that
is business models you can see how a lot
of companies got jacked up about digital
coupons and a lot of money was invested
and a lot of people went crazy and then
a lot of money was lost and then there
was also the CEO that had his own issues
and misstating financial reports and
things like that that was a lot of
things and if you want to read all about
the Groupon story go over to Business
Insider one day and pull their little
ebook on Groupon and it’s free and you
can read the whole long story and all
the gossip but beyond the gossip this is
a lesson of business model and that you
should spend a lot of time on the
business model and make sure that an
early yes you may seem in the market
whether it’s vanity stats or it’s a real
honest a good business model to be had
and I’ll recommend a book well my
favorite books is this one business
model generation and it was written by
Alexander Osterwalder I always look at
his name so I always scared I’m gonna
mispronounce it but you can find this
and go give it a read because this is
inexpensive insurance and it’s one of
the things that could help you make a
great business model it’s probably good
practice as an entrepreneur to read
books like this and be up to speed on
what great business models are all about
because what you don’t want to be is a
great business a bad business model
that’s nothing more than buzz on day one
that turns into a train wreck later on
because whether you’re Groupon or Amazon
you could find yourself in a space that
just doesn’t take off and so that’s the
story a Groupon that’s alright that’s it
for today and of course as we say every
week please subscribe the value tainment
and this is where you’re going to find
the best content on the internet for
entrepreneurs and until next time I’m
Thomas Wirth and I hope I left you
better than I found you
you [Music]
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