What is meant by – business model?
Business model is basically the way you make money, the way your business is serving its customers essentially, so your programmes, your services.
Are you for example doing one-to-one work?
Do you have a membership?
Do you have a group programme?
What are you doing to serve your customers and clients, that is fundamentally your business model.
Do you enjoy it?
The very very first thing to think about is do you actually enjoy it?
Do you actually enjoy your business model?
Or are there parts of it that are leaving you thinking, ugh, I don’t like that bit, I hate selling that bit, I hate delivering that bit, whatever it might be. Is it working for you in terms of are you enjoying it?
Are we enjoying doing it?
Does is align with your vision?
The second thing that we need to be really clear on is does our current model align with the vision that we have for our business and our life?
Because if you envisage your life as working four hours a week and spending a lot of time on the beach and kicking back, but your current business model is 100% driven on one-to-one work, then there’s a mismatch there between your model and your vision.
So the question is how can you pivot and transition what you’re currently doing so that you can end up with the life that you want, so that you can end up living in a way that you want, and you don’t end up just building this big monster of a business that actually isn’t in alignment with how you want to live your life?
It’s really really important to make sure that those two things are aligned because if they are not, they are a drain on your energy, they are a drain on your resources, they are a drain on your time, they are a drain on your money, all those things happen.
And quite frankly you end up resenting your business as well.
And by the way if you haven’t done that work on actually what you want your life to look like, I don’t just mean your business, I mean your life in its entirety, because your business and your life are so intertwined when you’re running a business, when you’re an entrepreneur. What do you want it fundamentally to look like?
So if you haven’t done that work, I really urge you to go away and schedule some time to think about actually what is the vision that you have for your life, what does that look like for you, and is your business moving you towards that or not, are they in alignment.
Now the third thing to think about when we are working out if our business model is actually working for us is is this scalable?
So are you, with the amount that you want to take home, the amount you want your business to earn, are you actually able to serve the number of people you need to serve in order for you to deliver that number, that number in your bank account?
Are you able to scale in the way that works and puts all the pieces together?
Or actually does the way that you’re looking at your business now, if you look at it and you go, oh okay this is my average customer spend, and I want Y pounds in my bank account every month, that means that I need to serve 725 one-to-one clients every week, that’s never going to work unless you have it so that you’re not delivering it, unless you take in other coaches, consultants, that kind of thing, and making sure that you have the profit buffer in just now while you’re doing the delivery potentially to actually accommodate that.
So do all the pieces add up together in terms of those finances, in terms of those numbers, and is it scalable as you grow?
Does it work or doesn’t it work?
You need to dig deep into those numbers to figure that out.
And this leads me on to number four, point number four which is the people plan part of it.
So it may be just now that you can cope with the number of customers and clients you have, you can cope with the size of your community for example, but as that grows, if you wish that to happen, as that grows, are you going to need to take on people to support you and to support your customers?
And if you are, again, does the current model support that?
Does the current pricing support that?
Does that way you have your business currently set up enable you to do those things?
Or is something going to stick as that happens, as that moves forward?
So again if you haven’t thought about your people plan and how you actually want your business to look at the end of the day, what support you want both actually in your business and in your home life, what you want that support mechanism, that people plan to look like, does it then fit in to all the other pieces?
Does it fit in to the vision?
Does it fit in financially?
Is it in alignment with where you want to go?
And would you enjoy it?
So all these pieces are so so important to come together.