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ZACH DE GREGORIO, CPA www.WolvesAndFinance.com We are talking about business models. Very simply, a business model is a description of how you organize a company. What makes business models interesting is that every company is different. Every company has a unique set of Strengths, Weaknesses, Opportunities, and Threats. We talked about this when we discussed SWOT analysis. You take your SWOT analysis, and create a strategy that is unique to your company’s situation. The business model is how you organize your company to implement your strategy. Today I am going to talk about a specific business model that I find to be particularly effective. But do not get upset if your company does not fit this description, because not every company has to be organized the same way. I am going to focus on the tech industry. The tech industry is going to play a pivotal role in our economy moving forward. The question is, how should we organize these tech companies to achieve the highest level of productivity. The best place to start is to understand how a business makes decisions. The results of any organization are a product of decisions. What is the right product to sell? Who are the right customers to target? Who are the right people to hire? There are a million decisions to make in a business. The way your business is organized affects the way your employees make decisions. If you look at decisions in a tech company, you can evaluate them from two different perspectives. There is a technical perspective and a business perspective. In every tech company, you have technical staff and business staff. Your technical staff is your computer scientists, engineers, mathematicians, physicists. Your business staff are people who have gone to business school. Both these groups have spent years in school studying their area of expertise. They went through very different programs, so it makes sense that they would approach decisions from different perspectives. Technical staff went to Engineering school, while Business staff went to Business School. They graduated with a different set of tools, techniques, and methodology for making decisions. Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.