People often talk about getting the foundations right first, then everything else falls into place, and this really is true of building a sustainable business.
One of the most important things you can do at the beginning of a new business idea is spend time evaluating the business model.
I’ve met quite a few very hard working business owners over the years, no one doubts their commitment or their sheer tenacity, but if the business model is floored or capped (i.e. there is a ceiling to how much money you can ever earn, or you trade time for money) then you will just keep working your socks off, for the same or less return - you could become that headless chicken we all try to avoid.
What type of business owner do you aspire to be?
And once you get into “headless chicken” mode or even worse “can’t see the wood for the trees” mode, it’s really hard to get yourself out! Even the best business coach will be met with endless excuses as to why any new plans or strategies can’t be implemented because there just isn’t enough time!
And of course, you can’t change how you do things because of your existing customers or workload.
None of these situations lead to a happy life or happy bank account.
Finding the perfect business model protects your future (and maybe your sanity). Surely we all want to aim for working more efficiently, for more return as time goes on.
Are you creating a saleable business or a “self-employed” job?
It’s a little like getting your home ready to sell - you make it look perfect, and then start to think, maybe I don’t want to sell?
Getting your business model right will make your hard work more rewarding and your future more rosy!
Your business model should be linked intrinsically to your business and personal goals. In five years time, how many hours a week do you want to work? What is your family situation? If your children are young, does this fit with your work/life balance.
A business should be scalable, you should be able to increase your revenue in other ways rather than just putting in more hours and harder work yourself. It should be sustainable growth, that is congruent with your goals - the big picture!
Are you working smarter or just harder?
In the online world membership sites are a particularly successful business model - providing many clients with the same service or product - doing the same work whether it is for 2 clients or 2000 is the text book meaning of scalability. Serving clients anywhere in the world means greater flexibility for both you and your customer base. Working digitally also means that alot of tasks can be automated.
Do you have recurring revenue streams and passive income?
Building a recurring revenue or passive income should be within your business model. Chasing one off sales is relentless - great if you are a super dooper sales person who’s not into customer service, but really you want to know that the more work & care you put into your customers, the more return you will see - you are building rather than just maintaining revenue.
Don’t be mistaken though, passive income does involve work, it just means there is no limit on revenue versus time available.
Growing your business and perhaps employing staff doesn’t necessarily mean less work or worry for you. Outsourcing to subcontractors can ease the issues you get from a growing workforce and feelings of commitment & stress.
Questions you need to be thinking about when evaluating your business model:
What are my long term business & personal goals? Do I love working every day of the week (many entrepreneurs do, but usually because it’s a choice)? You have to put in hard work in the early stages of a business, but this shouldn’t be the case 5, 10, 15 years down the line.
Do I want to employ staff, increase my existing workforce or keep it to just me and subcontract if necessary?
Is my business saleable or does it rely entirely on my presence?
If I increase my customers does that increase my workload more than my revenue? Is it even possible to fit more hours into a working day?
How robust are my working practises? Could I automate more tasks? Are my systems slick? In the early days, make sure you put in systems that are also scalable - pretend you already have a team and work to precise standard operating procedures.
Without being too fluffy…..do you love what you do? I don’t believe any of us want to spend the largest percentage of our time during the day doing something we don’t love. Again, realistically, in the early days you have to do alot of tasks that aren’t so great, but over time these should be eradicated from your day. And there will always be small things we’re not mad keen on, but they only make the good jobs better!
So how does your business or new business idea stand up?
Please share with anyone who may benefit from thinking about these questions.
Good luck and for more advice go to:
To join my FREE Facebook Group for more tips & advice on growing your business online: http://bit.ly/2JuCJDV
Go to my website to see how I could help you grow your business successfully, while avoiding tech overload: www.the-zone-club.com
If you feel ready to try a FREE 28 day trial with Kajabi, the all-in-one online business platform click on this link: http://bit.ly/2T8uTFg
Mandy Baker © Virtual Business Manager April 2020
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