You have probably read and heard about the need for a good business model for your company.
It isn't as mysterious as it could sound. That's just a strategist's way of saying to ask yourself a key question:
How will you make money?
Typically, for-profit businesses focus on adding economic value and not-for-profit organizations focus on adding social value. The case can also be made that the ideal position for each lies in a hybrid entity; i.e.: profits with social consciousness and social missions with fiscal responsibility.
Viable Business Model must come before you install that great marketing cotter pin: Visibility. Too often, a business has a great product or service, coupled with reasonable pricing, but little or no business modeling. It leaves a big gaping hole in the viability of the business.
What do I mean by that? You, business owner, have identified a marketable product that you believe will sell -- there is need in the marketplace. You have calculated your income needs, factored that into your pricing, and decided this can work. You venture out into the sales jungle and do "all the right things" -- or so you thought. The results are disappointing, however. Thus, a piece of the planning puzzle is missing. You can only conclude that your business model and key parts of your strategies are flawed.
The easiest way to build a Business Model is to Ask and answer the 5Ws -- the ones you learned in English or Language Arts class: Who, What, When, Where, Why. Apply the answers to your Business Model. Then make sure that your price points, your packaging and presentation [branding], and your placement match up accordingly.
For example: If you provide high-end bathroom remodeling, you need to market your services in venues and to prospects that are likely to spend upwards of tens of thousands of dollars on that set of products. Develop plans for finding and connecting with those prospects so that your time -- and marketing dollars -- are invested well. Find people who are already connected to your market niche; that makes a great starting point.
If you would like a little help with strengthening the viability of your business, E-mail us with your questions, or leave Comments below, about your challenges in reaching your business goals.
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