Do you know your business model? If you’re not sure, you’re not alone. Many business owners are clueless when it comes to this topic!
Simply put, your business model is how your business makes money. You can think of it this way: what exactly are people paying you for? (Without paying customers, you have a hobby, not a business.)
It’s important to emphasize that your business model must be proven. There’s no need to reinvent the wheel here! To find a proven model, simply take a look around at others who are highly successful in your chosen industry. How does their business make money? What income streams are they incorporating? What are they selling?
For example, my business is primarily an information-product-based business model. With this model, a business owner makes money as a teacher, expert or coach, and builds their brand by delivering information and advice in the form of products, one-on-one coaching, workshops, online programs, books and more.
The business owner offers solutions to a particular problem, and clients and customers pay them for it.
Here are some additional examples of what your business model could look like:
- A one-on-one service
- A group service
- A standard physical or digital product
- A customized physical or digital product
- To be positioned in front of your audience
The customer pays:
- For leads or referrals (for example, affiliate marketing)
- For your talent (for example, hosting, speaking, acting, etc.)
Just like my model, your model could be a combination of all of these.
Ultimately, you make the rules here, but it’s smart to follow a proven model that plays to your strengths.
It’s also helpful to understand your business’s sweet spot. How do you find that sweet spot? It lives at the intersection of who you most want to work with, what you most want to deliver, and what your client or customer most wants to buy.
If you’re having trouble getting people to invest in your products and services, take a step back and make sure you’ve done your research. Are you selling something they truly want and would pay for? (Not just what you think they need.) Do you have the evidence to back it up?
What you think they need is irrelevant; it’s what they will PAY for that really matters.
As you can see, several pieces have to come together to form the business model puzzle. Fortunately, with a little research and looking to others who have paved the path before you, you’ll be on the right (and most profitable) track to business success.
I’d love to hear your thoughts in the comments below!