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Six easy-to-remember concepts offered about value creation

David Cummings is the Founder of the Atlanta Tech Village and also Founder and Chief Executive Officer of Atlanta Ventures. In addition, he is a regular blogger with good content.

In his latest blogpost, Cummings cites a rubric for value creation in a business discussed by David Friedberg. “This articulation of the business value creation journey is the best I’ve ever seen,” Cummings writes. What got him so excited? It’s the six easy-to-remember points:

  • Can you make a product?
  • Do people want to buy your product?
  • Can you make a positive gross margin selling the product?
  • Can you make a return on the marketing dollars you have to spend to generate the gross profit?
  • Can you scale the amount of money to grow your business such that as you grow, the return goes up, not down?
  • Can you transition to being a platform (multi-product company)?

 

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