Chapter 2: The 4-gate model prosperity

avatar
Created by
ayumi

Cards (34)

  • GATE KEEPERS OF THE 4-GATE MODEL
    GATES: (PREPARATION, MARKETING, EXCECUTION, SELF LEADERSHIP)
  • GATE 1 (3M) - Money, Model, Mentor
  • Money - (or its equivalent) is the cash component that creates the cycle of wealth conversion
  • Model is the business model the big picture plan to generate sales revenues, profit, cash flow, growth, and how to scale up.
  • Gate 2 Marketing (Mindset, Market, Message)
  • Mentors are the experienced advisers who can add value to the entrepreneur by giving sound guidance to increase the competency, lessen the risks, and help open more opportunities for the entrepreneur to succeed
  • Mindset is about beliefs that innovation is better than commoditization, that being an innopreneur is better than being just an entrepreneur
  • Market is the set of buyers that an entrepreneur focuses attention on, starting from a beachhead market in the beginning, and then adjacent market for future expansion.
  • Message - is the brand positioning that will be communicated to persuade s target customers to buy.
    • Gate 3 Execution - (Machines, Management skills and Methods)
  • Machinery - is about an organization structure that can deliver the value planned, hence, the organizational structure can only be identified after the value proposition is formulated.
  • Methods - are about systems and processes that allow the entrepreneur information and control.
  • Management Skills - is about the ability to carry out the plans through people, rewards and leadership
  • Gate 4: Self-Leadership -(Moving Forward, Mission and Mastery)
  • Moving Forward is about giving the grit to continue the business despite obstacles
  • Mission is about purpose or the reason why business exists beyond making profit.
  •  Mastery is about building capabilities, knowing the nuts and bolts of the business well, and eliminating gaps in the know-how
  • Personal branding is the conscious and intentional effort to create and influence public perception of an individual by positioning them as an authority in their industry, elevating their credibility, and differentiating themselves from the competition, to ultimately advance their career, increase their circle of influence, and have a larger impact.
  • SIMPLEST WAY TO RAISE CAPITAL (SAVINGS, PARTNERSHIP, LOANS, CUSTOMERS ADVANCES)
  • SAVINGS - Discretionary funds from unspent money earned previously by an entrepreneur
  • PARTNERSHIP - Includes investment from relatives , friends and acquaintances
  • LOANS- Money advances, which may be sourced from individuals, informal channel or financial intermediaries like banks.
  • CUSTOMER’S ADVANCES   - Terms of sales advantageous to the seller , such as cash with order (CWO) , asking down payment (DP), Cash on Delivery (COD) or collecting franchise fee upfront.
  • .ANGEL INVESTORS - Money invested by an outside to individual firms
  • SUPER ANGEL    - Big amount of money invested by an outside individual to a firm
  • VENTURE CAPITAL - Amount of money invested by outside investors, typically over 10 individuals with none owning over 10% of the investment pool, forming themselves as a venture investing company.
  • PRIVATE EQUITIES - Amount of money invested by outside investors, typically over 10 individuals, forming themselves as a private equity investing company, focuses on the firm that already have revenues and profit.
  • GOING PUBLIC - Amount of money invested via initial public offering (IPO) from the stock market
  • A mentor is a trusted and experienced adviser who is interested in the success of the mentee. He/she does this by investing time to be a sounding board, to listen and understand context ,ask questions, give sound advice, offer alternative opinions, opening windows of opportunities and lessening the risks of mentee.
  • TYPES OF MENTOR’S NEEDED   (OPERATIONAL, FUNCTIONAL, PERSONAL, STRATEGIC)
  • OPERATIONAL  - Guides on matters related to present operations, especially key factors for success that the firm should do exceptionally
  • FUNCTIONAL- Guides on matters related to Accounting, support functional areas on which the entrepreneur may need some advices
  • PERSONAL - Guides of matters related to personal growth           
  • STRATEGIC   Guides on matters related to the future vision of the entrepreneur