Veneering Core Business Units for Increasing Asset Value

When you have a great core strength for your business you can wrap a different outer layer over the top of it to appeal to different markets. James Schramko coined the expression 'veneering' to make this powerful business strategy easy to understand:

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In business as in furniture, products can be veneered to have more value

Transcription:

Veneering, this is a high level concept but I’m just going to give you a couple of case studies. It’s my term. The whole idea is chipboard, you can put a level of veneer on the top and people only see the top layer. That’s the perceived value of something.

Introducing LinkJuice

LinkJuice is my brand new website. This is a Dyson design. Is that a good looking design or what? Beautiful design. Thanks James. He doesn’t do designs anymore, by the way. LinkJuice is where I’ve taken my core SEO team. We’ve identified what works. This is the team that built TrafficGrab. They made the Spaghetti Bowl. They invented it. We’ve taken that, we’ve identify the processes, we’ve modularized it, we’ve systemized it, which I’ll cover this afternoon in the productivity session. We’ve taken the core offer and now, we’ve put a different layer on top for a different market. We’ve got SEOPartner for our resellers. Primarily it’s a reseller channel. We don’t necessarily go and try and deal with customers direct. We all know that’s interesting, but Kyle will tell us how we can do that if we wanted to today.

Now, we’re going to approach a different channel with LinkJuice. We’re going for a different market segment, but it’s a similar backend core offer. We’ve taken out some things, added in a couple. We’re using the same thing but we’re veneering it with a different value. If I want to sell these businesses off, they each have their own value as an asset. But it’s the same engine that drives them. Car manufacturers do it. The AMG 6.3-liter V8 is in the C class, the S class, the E class, the M class, the SL, the CL, the CLA. It’s the same core engine but they repackage it and remarket it to different segments. It’s a great concept. Your action point, how can you reposition your business if it had a different name, domain and market slant but use exactly the same back of house infrastructure. This is another example of veneering.

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