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 Synopsis - 1

A fundamental reason why people start businesses, invest in them or join with them is becuase they promise greater returns than other alternatives.

A useful representation that works for most of these proprietary business opportunities is provided in the diagram.  In this system, value delivered to customers generates revenue.  Part of this inflow of cash is invested in the innovation of new products and services.  These expenditures eventually cause value-added information to be delivered to Operations that enables new market offerings to be introduced, sold, implemented, delivered and supported.

If the level of investment is great enough, and the value created is appealing enough, exponential growth in the incoming revenue stream results.  Otherwise, revenues decline exponentially over time.  But how much investment is enough?  What determines the level of investment that is needed to create a desired rate of growth?  What are the success factors that determine how many dollars of new revenue will be created by each dollar invested?

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