1 min read

So imagine a simple baker, her name is Helga. Well, Helga isn’t really really a baker baker. In that what she does is to buy flower from Sarah the Miller but then brings it to Tom the real bread baking guy. Who then, in exchange for keeping some of the bread for his own shop to sell, gives Helga bread to sell in hers. A somewhat strange arrangement. It looks like a barter.

So Helga gets her bread which she pays for by bartering with Tom for access flour. Helga has a nice shop and the mortgage is almost paid off. To Johanna the banker. Now, Helga goes on selling bread to Thea the grain farmer. Thea has money. The money Thea got from selling her grain to Sarah the miller.

Now Helga has money to pay the Johanna the banker. Because all she wanted is to have the bakery shop free to her name so she can sell the whole thing and retire to Tenerife. Because that’s her dream island. But two years ago Tom got ill and Helga had to bake her own bread. The outsourcing of baking stopped for a while and Helga was a proper baker.

Turning flower into bread, to turn bread in to money, to turn money into mortgage payments and flower, to be able to sell her shop sometime into the future so she can retire to Tenerife. Because it’s nice there and warm.

But then Tom got better. And things went back to how it was. Helga went back to being baker without being a baker. And after a year Helga sold her shop. And retires to Tenerife. From the interest on her wealth she gets from Johanna the banker. Bye, Helga have fun in Tenerife…

Interlinked Business Models

Question 1: What does Helga do for a living? Is she a real baker for outsourcing the actual baking thing to Tom? Or is she in the shop selling business? Is Tom a baker if he doesn’t buy his flour from Sarah.

Question 2: What is Helga’s business model? If she is outsourcing the baking isn’t she just a bread shop? How is that for butchers who get their meat from a slaughterhouse?

Question 3: What transaction makes Helga the most money? What type of transaction in any of the participants businessmodel contributed most to going to Tenerife. Thea eating bread? The selling of her shop? How often did she have to do these transactions.

Question 4: Who is her customer? The people she got money from? Well, Johanna gives her money isn’t she a customer?

Question 5: What can we do to copy Helga’s business template and eventually retire to Tenerife too?

Simple questions that have surprising complex answers.

Industry Business Models

Say there’s a whole industry making bread. Why do they do that? We want to know what’s make them tick. For instance want to...
1 min read

Black Box

Trades are amazing. Trade enables you to optimise your endowed portfolio. That is you can change what you have, your initial endowment, into something...
48 sec read

Value chains are bogus

How we can tell you’re a customer? My bank just paid interest on my savings account. And since they are paying me, they must...
1 min read

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.