“As you start to walk on the way, the way appears.” ~ Rumi
The business model is the huge elephant in the room except it’s invisible. However it determines what’s possible and what’s not and it orchestrates all activities like an invisible conductor.
In putting together Nusantara Collection… the first task I set myself was to crunch out the numbers so we had an understanding of the finances required to get that model off the ground.
This was very well demonstrated by Prem (in The Nusantara Story, Part 2) in what is called the Revenue Stream Model, where the focus is to maximize the revenue stream by scaling and then eventually turning those revenues into profits. At the same time, Prem’s financial presentations also posed multiple challenges which had been the subject of many lively discussions & debates since 2016 and still not fully resolved.
So let’s first do a little initial dive into the Revenue Stream Model to explore a few of the issues that arose…
If we scratch beneath the surface of the Revenue Stream Model as presented, it appears to have an Achilles heel in that it has yet to arrive at proof of concept fully — ergo the pathway to “profits” at scale is at best speculative. All we can definitively say is that it has achieved proof of hype — ergo there is buy-in on some level around the constructed narrative to enable initial investment — ergo questions like teamwork and quality of product/services are not comprehensively tested.
Another observation is that this model tilts towards greater recognition of Capital and Marketing …and less recognition for perhaps other Value Creation components that are also measurably critical for success. So there are challenges not fully acknowledged in this model.
But arguably it can be quick off the ground.
On the other hand, Community Building in Business, as alluded to by M Scott Peck, explores the idea of Value Creation. One plus one equals more than 2 — where the whole is greater than the sum of its parts. It therefore focuses on self-development/core skills, teamwork, communication and the valuing of contributions. Creating/unlocking values. So this lends itself to personal growth, psychological health and spiritual principles.
So it ostensibly seemed the considerations were for EITHER a business model for a revenue stream on steroids, with a prayer that it will also achieve profitability at some point …OR a model that focuses on the development and unlocking of human potential, based on spiritual principles, but without an examined pathway to profitability as per Scott’s presentation.
2 bifurcated pathways… but perhaps it’s not either/or but both/and. This is the discourse this blog will take …stemming from the journey of The Nusantara Story on the road less traveled …how it began to unfold as I began to walk my first baby steps.
One question I always ask in my conversations is: Say I were to give you all the money you think you need today …do you have the Team to take you to the finish line? It’s always interesting to listen to the responses.