So, how do you establish a business model? Here are 3 steps…
1) Get Clear on What You Are Building
Firstly, you need to get clear on what you’re building. Be clear on the end in mind as this will shape the business model that you will need. What is the business that you are building? How clear are you on what your business looks like in the end? What is the revenue? How much profit do you want to make? How many staff? Where are your locations? And so on. You need to get super clear on what you are building.
2) Know What is Making You Money in Your Business Model
The second thing that you need to know is what is making you money? Which of your products and services are actually making you money? This is important because some of your products and services are helping you win the game of business. Some are causing you a lot of pain and hurt. This is something you need to discover.
Work out what has got a high gross profit margin for you. Not just percentage wise, but also per hour of your time that you’re taking to deliver that product or service to your customers. Like a pool company that we worked. When he did this exercise on a particular service that he sold, discovered that he was making just $50 gross profit out of this service every time. This was okay except that most of his business came through a referral network and he would pay a $50 spotter fee. So, pretty much, every time he got one of those jobs, he was giving away his gross profit, which meant there was nothing left to actually service the business. And it wasn’t until he discovered this that he was actually able to change it.
3) Market What Makes You Money
Finally, the third thing is once you are clear on what is making you money, then true marketing can begin. If you are marketing and not knowing what’s really making you money, then you could be getting a whole lot more of those jobs. And all those sales could be hurting your business instead of the ones that help you win your game of business. When you know what’s making money, you simply need to market more of that, so you get more of that type of work. This will lead to a quicker trajectory to winning your game of business.
So, just to recap.
- Get clear on what you’re building.
- Know what’s making you money,
- Market what’s making you money, so that you win your game of business.
This is about getting your business model together. A good business model is more about what you sell that makes you win the game of business than anything else. When you do this you are going to get super clear on your business. You are going to get clear on your direction. You are going to get confidence in what you are doing and how you are doing it, and business will become a whole lot easier.
P.S. Whenever you are ready here are 4 ways we can help you build and grow your business:
1) Download your copy of 3 Proven Tactics That Give You 5 Hours Back in Your Week
This totally free guide includes tips, time-savers, and expert advice on how to immediately claim back 5 hours of your time each week. Inside you’ll discover 3 proven tactics to stop time being wasted in your day so you get more done each week. To access the guide click here
2) Watch the Business Freedom Formula Video
In the video you’ll to discover the step by step blueprint we use to help small businesses create their version of business freedom. This could be simply streamlining your business so it runs more efficiently, increasing your profits so you have more choices or setting your business up so you can have time off without worrying that it is all going to fall apart. Click here now to watch
3) Book a 10 Minute Exploration Call
If you would like to explore how Biznostics can help you run and build your business, then book your 10 minute exploration call. On the call we’ll find out a little bit about your business and work out if and how we can help you. Book your call here
4) Join our Business Freedom Program
The Business Freedom Program is designed for business owners who feel stuck in the day to day running of their business and their business is not running as efficiently as they like. It helps you make your business much more profitable, much more efficient and much more enjoyable to work at. We are putting a new group together next month so if you would like to build a strong and successful business email us here with ‘Business Freedom’ in the subject line.