Tuesday, December 28, 2010

A Christmas Business Model

I know it's a little late to be talking about Santa Claus, but my Xmas card/Dec. 24 post generated a compelling response from one of my favorite business thinkers, Donald Cooper, so I didn't want to wait till next Christmas to share it with you.

My previous post asked if Santa qualifies as a true entrepreneur. Donald's reply ran thusly:

"Rick, as I give your Christmas message more thought, there are many observations re your “mystery entrepreneur’s” business model and the business lessons that evolve from it...

1. He has clearly focused target customers....good little girls and boys.

2. Hires people with physical challenges....elves.

3. Business is based in a low-rent location....North Pole.

4. Pays close attention to detail... makes lists and checks them twice.

5. Offers the convenience of on-time, home delivery and free gift wrap.

6. Has gone Global.

7. Successfully uses Social Networking to get customers to write him re what they want, so as to plan production and control inventory.

8. Is masterful at getting loads of free media publicity.

9. Cleverly arranged a global cross-brand promotion with Coca Cola.

10. But, he has no discernible revenue model...and,

11. No succession plan, or exit strategy.

There is much to be learned from all of this."

I especially like No. 7. It's true and subversive at the same time.

For more of Donald's out-of-the-box thinking, check out his free articles and resources at http://www.donaldcooper.com/

I also liked his signoff: "Be well...make a difference...have fun."

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