The truth is that most business owners do not understand the power of their model.
Getting your business model correctly platformed is the one thing that could – literally – transform your business.
What a challenge!
A business model is the integration on one platform of the fundamental elements and processes of your business with the operational, strategic and corporate governance dimensions of your business.
The purpose of your business model is to maximise value, wealth creation and gain sustainable strategic advantage.
Your business model helps you tell the story of your business, so that other interested parties – customers, employees – ‘get it’. It should show how you add value to your customers’ organisations and how the operational and strategic pieces fit together.
In a nutshell, a business model describes how the whole is greater than some of its parts. It shows how the processes and systems merge and tie together.
You can see the ‘big picture’ and simultaneously the ‘small parts’ of the system. This is called ‘big-little-big’ perspective.
Now may be a good time for you to take out your business model and review, buff-up, reinvent or create a totally new business model for your business. How is the old model serving you? Invest some time and money in getting your business model flying in harmony.
This one step can be more powerful than 90% of the so called important tasks on your desk right now.
Two tests will help you initially:
Next, make sure everyone in your business understands your business model and can explain it on a beer mat or napkin.
Finally, look around at the great business models. What about Apple or Google as examples? Or Ryanair?