The CROP Business Model
Concept. Runway. Operations. Profit or Pivot.
Business is a cycle.
Here are my thoughts on a little business model/tool I’m putting together based on my observations from business development and product management. I’ve found that no matter whether it’s software, retail, events, or some other venture, there’s a pattern. It starts with a concept. But it needs to be a well-researched concept, not just an idea. And then there’s the runway, where you raise capital and launch. During operations, you get your footing with product/market fit so that finally, you can iterate to profit or pivot. There are no clear boundaries; each aspect bleeds into and influences each other. Your concept will evolve; as you iterate you’ll come back to the runway. Operations affect profitability.
The cover photo for this page was taken on a foggy hike in the mountains. My dog had run ahead down the path over the little stream and disappeared into the fog. I couldn’t see her from the beginning of the path but as I crossed, things became more and more clear and I could see her on the other side of the little bridge, wagging and waiting for me. Business is like this more often than not. We have a vision, but things are a little foggy. Our customers are just up ahead, waiting for us. As we get deeper into our analysis, signals become stronger and the path to join them just ahead becomes more clear.
Here are some tools I’ve collected and insights I’ve gathered, having been through each phase more than once myself.
Please enjoy, and I welcome feedback.
Perspective
One of the five P's in the Profit (or Pivot) optimization phase of CROP is perspective. Do we have the right perspective on the situation? Our perspective is our view on a situation, and it gives us a framework for interpretation and decision-making. It transfers bias...
A Modern (Agile) Marketing Mix
The Marketing Mix is rooted in a time when the sale of physical retail goods dominated the markets. In fact they were the markets because the Internet didn't exist when the Marketing Mix was conceived. So that's the paradigm it was framed in. As such, four "P's" were...
Hypothetically This Will Work
I did not like my Chemistry class in High School. In hindsight, it should have been fun. As an adult, I think I would love it. But for me, at the time, it was too much about theory and memorizing formulas and not enough blowing stuff up. I think education has evolved...
5 P’s to Profit…or Pivot
The final area of focus in the CROP model is Profit...or Pivot. How I came across 5 P's for this area is a bit of a long story involving a layover in New York, watching a random hotel TV interview, and a lot of subsequent experience so I'll cut to the chase: in order...
The 5 S’s of Operations
My first "grown up job" was in Operations, so I have a particular nostalgia for this area of business. In the 6 years I worked preparing for the 2002 Olympic Winter Games I was fortunate to work with some amazing professionals. I was fortunate to work in the...
Paving the Runway
After you've refined your concept, it's time to get ready to launch. I'll call this stage The Runway--because that's what it's called. This is where you get funding and get your product to market. The length of your runway is determined by the resources you have to...
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I wouldn’t trust them with a P&L, but you can learn a lot from dogs.
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