In [[The Personal MBA]] an //option// means taking a predefined action for a fixed period of time in exchange for a fee. It is one of the [[Twelve standard Forms of Value]] (Form of Value #10 of 12). Options are valuable because they allow the purchasers with the ability to take a specific action without requiring them to take that specific action. Options are often used to keep courses of action open for a certain period of tiume. Options are often an overlooked form of value - flexibility is one of the [[Three Universal Currencies]]. Find a way to give people more flexibility and you may discover a viable business model.
!Key Points:
* An option means taking a predefined action for a fixed period of time in exchange for a fee. Movie tickets are options!
* To provide value with this form of value you must:
** Identify an action people might want to take in the future.
** Offer potential buyers the right to take that action before a specific deadline.
**  Convince buyers that the action is worth the price.
** Enforce the specified deadline on taking action.
* Options allow the purchaser the ability to take an action without requiring them to do so.
* Options help keeping specific courses of action open for a period of time before another transaction takes place.
!Questions for Consideration:
* Does delivering value via offering options make sense for your business idea?
* If so, what do you need to plan for to make it successful?

Source: http://book.personalmba.com/option/
bag
mbi_public
created
Thu, 20 Jan 2011 21:05:38 GMT
creator
dirkjan
modified
Thu, 20 Jan 2011 21:05:38 GMT
modifier
dirkjan
tags
Term
The Personal MBA
creator
dirkjan