Updates along the way

Today we've had a business model class given by Daniel Soriano from IE in which we have reviewed our businesses plans and discussed about them, a quite interesting workshop. We have been given a sheet to document the main aspects of our business (you can see it in the pictures).

When explaining the sheet, groupon has come to my mind. It's really important to know that business model is not only how you earn money but how you support growth and spenditure, otherwise you might be losing money without even noticing it as it seems it could happen with groupon soon. For example customer acquisition has been growing and growing at a fast rate, and not a lot of small businesses are willing to repeat the experience with groupon since the loss of the money of the products you sell that day doesnt justify the advertising you get. Here you have  articles that talk about the situation, very understandable by the way:

http://www.quora.com/Groupon-IPO-S-1-Filing-June-2011/What-are-the-most-notable-aspects-of-the-Groupon-S-1/answer/Rakesh-Agrawal-2?srid=4Y
http://blog.yipit.com/2011/06/03/groupon-s-1-reveals-business-model-deteriorating-in-oldest-markets/
http://www.knewton.com/blog/knewton/from-jose/2011/06/03/groupon-is-a-straight-up-ponzi-scheme/
http://parislemon.com/post/6187955938/on-grouponzi

The one who got the good deal http://online.wsj.com/article/SB10001424052702304563104576363891724546426.html
And what we were thinking about groupon a while ago http://www.forbes.com/forbes/2010/0830/entrepreneurs-groupon-facebook-twitter-next-web-phenom.html

As you see some of them think it seems like a ponzi scheme and you know how it ends (remember maddoff?). Also, the soon to come IPO could relieve this situation for a while but then almost everything will be public and it could end as another bubble that burst, but who knows, maybe it wont follow the ponzi scheme.

I think groupon's case is a very interesting study case that is happening now, I don't know what it will happen with the company but for sure it will end up being a business study case, after all is not a little detail to be the fastest growing company ever.