Comments on: Entrepreneurial Strategies: High Margins + Known Models

By: shankar

shankar — Tue, 10 Feb 2009 07:30:16 +0000

i want to know wat happens to the society where one group of people start making super profits and demand does not come down and they spend money like crazy
1.please tell me is there any book to read to know on this
2.is it ethical for some people to make super profits

By: Kevin

Kevin — Tue, 11 Apr 2006 18:03:47 +0000

I agree with your assessment. I put this thinking forward when we were developing ideas for TBE.

You can be successful doing anything, but I think there can be a science to giving you the best chance for success. Picking a business that the community needs but isn’t fun is a good start.

By: Rob

Rob — Tue, 11 Apr 2006 13:33:11 +0000

This post has been surprising. I put lots of thought into so many posts, and then a 5 minute post that basically states the obvious makes it to the front page of reddit. Weird

By: Peter Begley

Peter Begley — Tue, 11 Apr 2006 07:58:35 +0000

Thank you for the reminder about taking the proven path and building a strong business from certainty and historical success. I tend to be a dreamer and often prioritize playing out my new business ideas in my head over something less sexy such as a furniture store.

At the same time, I think entrepreneurs should consider purpose (as it pertains to bettering society as well as a function of pure profit potential) as prominently in their new venture planning. For instance, instead of simply deciding launch a furniture store or a coffee shop because they have a proven model (with high margins), why not determine first their positive impact on society? If a coffee shop has no positive impact on society yet is highly profitable, should the entrepreneur still pursue the idea? (I tend to think coffee shops, of a locally-owned and Fair Trade variety, have a lot of positive social value, but that’s beside the point.)

More than simply emphasizing having a positive impact on society, pursuing business opportunities that have a positive societal purpose beyond profit are typically very fulfilling. And fulfillment usually leads to greater dedication and thus success.

I’m making broad generalizations, but you get my gist. I think you posted about business purpose recently, so I apologize if this is a bit redundant.

By: Razib Ahmed

Razib Ahmed — Tue, 11 Apr 2006 00:25:24 +0000

Nice and well written article. You are right about Coffee houses being profitable. In Bangladsh, thousand people earn their livelihood by just selling teas in the street. They even do not have any shop and always on the run with a flask.