By Stefania Aulicino
Enthusiasm is a trait of all successful entrepreneurs. Used incorrectly, it becomes the Achilles’ heal of an entrepreneur’s business model.
The excitement of a new business rallies the Herculean effort of the founding team. People put in 12-hour days for less than normal compensation. In fact you can’t pay for that kind of work ethic. Imagine if you offered to pay your grandmother to cook Thanksgiving dinner for her family and grandchildren: you would actually dis-incent her! You cross the social bounds with commercial bounds.
Yet, trouble starts when the owner builds a business model that continues to rely on Herculean effort instead of shifting to a fully burdened model which can pay cash for value delivered to customers. Pricing is too low to pay for a sustainable team. Customers expect extraordinary service but are not charged a sustainable value-exchange. continue reading…
