A business model is different from strategy. A Business model is basically the means used to achieve the strategy. It is different again from tactics which are the actual steps taken to achieve the strategy In many ways the business model is like the map.
For an existing business, it is essential to review the existing business model. It is more likely than not that a review of the model will reveal additional income streams, sources of income or income dimensions.
For example, in addition to providing the products or services in which the business currently provides the business can adapt its model in the following ways:
- Change a one time sale to a several time sale
- Offer products and services which are complimentary, to meet the needs of the clients on which they originally had.
- Create new products or services
When planning your business model, most businesses have a range of leverage relationships. This is about getting together as many people in the business owner’s relationships as possible and creating a network based around that business. Building relationships does not have to mean going to every local Chamber of Commerce meeting, relationships are meant to be enjoyable and not difficult. Perhaps hold your own event or do a combined event with an alliance. You could hold golf days, a Charity morning tea or a day at the races. Keep in mind, you are planning to create leveraged business relationships that are designed for your business model.
Another option is based around maximising your distribution channels. For example, if a business product is distributed through one channel, can that business expand those products distributed through that channel, endorse or licence other products to distribute through that channel or even distribute products through that distributors channels creating, yet again, exponential growth? Think outside the square and consistently review the progress of your growth to see what is and isn’t working and make the relevant tweaks to enhance the success.
I have a simple question for you on your products and services. That question is –
“How many other places can you take your existing product, service or combinations or variations of them and apply it to other fields, regions or buyers? Could you even licence other people to use them?”
That is the simple question, the more detailed matters are as follows:
- Can the product or service be packaged in a different way, size or combination?
- Could you package other people’s things in it?
- Could you package your products or processes and make that a product or service?
- How many new products or services could you come out with that are your natural extensions, embellishments, premium versions or higher performing versions?
- Can you create a stripped down ‘white label’ version?
As mentioned previously each business needs measurable, impactful and quantifiable –
- Procedures &
If processes, procedures and systems are not your strong point or your natural flow, DELEGATE it to someone who will be able to do it better and quicker than you. If you need to use staff from different departments or you need to outsource then do it! The benefits will flow through as you see growth and have less stress on your day to day running of the business. There is no need to spend 2 days creating a model that is amazing, get a pen and paper out and make some notes. Map it out as simply as possible and put it on your wall to look at regularly and share it with your team.