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Could fractionalization solve your profitablity issues?

Could fractionalization solve your profitablity issues?

November 04, 2022

In this issue, you’ll learn:

How to make more money while charging less.
How to reach new customer groups that couldn't afford you before.

Time to read: two minutes.

Types of value propositions

Today, we will talk about what's in bold in the list below.

Price
Cost reduction
“Getting the job done”
Risk reduction
Customization
Accessibility
Convenience/usability
Performance
Design
Newness
Brand/status

Accessibility

It's when your business model depends on how accessible you make a certain product, service, or function that was not previously accessible to your target customers.

Examples

To add value, you may also expand your company's reach by providing its products and services to new types of clients. This may emerge from a novel business model, cutting-edge technology, or both.

It starts with electricity. Not everyone can buy generators or inverters to make electricity from solar panels or batteries, so the grid is one of the ways your home gets power.

The same goes for the gas company. Instead of buying gas in cylinders, you get it delivered right to your home and pay for it as you use it.

Same thing with water. Instead of digging a well or buying water and paying to have it moved into your water tank, you just get it straight from the provider's infrastructure.

Instead of buying a bike, a scooter, a motorbike, or a car, you get a taxi, a bus, a train, or a ride-sharing app.

We are now in the 4th industrial revolution, and this has turned into technology.

NetJets | World's Leading Private Jet Company | Fractional Aircraft Companies

NetJets is the world’s largest private jet company, offering fractional aircraft ownership, private jet leases, and private jet card programs. Experience the ultimate in private jet travel, from departure to return.

Fractional Products

Example 1: Fractional private jet ownership

Fractional private jet ownership became mainstream thanks to companies like NetJets.

NetJets has made private jet travel affordable for people and businesses by taking a new approach to the charter business.

Example 2: Fractional Compute

With the development of cloud computing, you can now store your files somewhere other than your hard drive. That remote storage is well prepared for problems like disk failures.

Just as it was very expensive to pay for the plane in the NetJets example, it is also very expensive to pay for business continuity and disaster recovery.

In the past, you had to set up a server room with a raised floor, special air conditioning, networking and servers, backup and archiving protocols, and full IT teams that you had to hire, fire, develop, and manage just to keep that running.

This is not only for storage; it can be for processing and memory.

I'm writing this issue from a browser that is thousands of miles away. I have tens of tabs open across three Chrome profiles, and the fan on my laptop is off, but everything is running smoothly. This is done with an app called Mighty app.

Example 3: Fractional business roles

Businesses are turning more and more to fractional service providers, which have added more services for the middle market.

A fractional solution can provide additional capability at a lesser cost than a full-time hire for accounting, finance, marketing, sales, project management, and other services.

And here are some of my best fractional service providers:

And if you are looking for a fractional CFO, Ali's company provides some of the best fractional CFO services I have seen.

If you run a business, you MUST understand accounting
Here is what you need to know:
— Ali (@AliTheCFO)
11:45 AM • Mar 20, 2022

Fractional Marketing/SEO services?

I've generate $11,500,000 in traffic value for clients with SEO.
Most assume it's scary and complex, but it doesn't have to be.
Here's everything you need for a SIMPLE SEO strategy that will turn your site into a money-printing machine:
— Barrett O'Neill (@barrettjoneill)
12:45 PM • Oct 17, 2022

Wrap-up

Make fractional products or services to increase your total addressable market.
Retainers are one of the main ways you could do this. Where your service staff could charge for their capped availability.