Do You REALLY Understand Your Business Model?
I talk a lot with business owners about their business model.
A business model is simply the true underlying structure that drives the financial results for any business.
It’s kind of like the engine room and infrastructure on a cruise ship. The things that go on “behind the scenes” create the end result for that ship – amenities, luxurious surroundings, great food, attentive service (or not), and many other things just like that.
The same goes on in your business. Behind the scenes, there are key activities, products, services, customers, and team members that all combine to create the “outward appearance” that you, as the owner, see. Specifically, those things create the financial results you see manifested in your business.
That may intuitively make sense to you.
The problem is that, almost without exception, I have found that business owners are mistaken about their true business model.
Almost every business owner I have ever met has an incorrect perspective of what their business needs to do to create the financial result they want – they simply are EXACTLY sure what SPECIFIC things the need to do, when they need to do them, and how often they need to be done in order to create their desired financial result.
Even worse, many business owners THINK they do know their business model. And that sets them up for disappointment, sub-optimal financial results, and quite often outright failure. This situation is like trying to navigate South America while using a map of Canada. It doesn’t matter how hard you try, or how many “good” decisions you make based on that map – if the map is wrong you will still suffer frustration, hardship, and failure.
Are you using the right map?
Are you sure?
If you aren’t sure, and aren’t afraid to admit, shoot me an email
I love talking to business owners and I’m looking for a few business owners who are willing to look inward and discover their true business model.