Could a stranger come into your office and run your business? It could be if you have a business model that defines every step of your business process. Create one using a simple business template that delivers actual business processes.
Start with an outline of what you do each season of business.
Sell product or services
Define your product or services within an image scale, including price, value and description of what each one entails. Give your products names that identify, define and value each product or service, and then place them in your product or service sheet.
Define niche market
Identify your buyers. Who are they? How much will they spend? How often will they buy? Will they return for more product? Should you meet them in person or online? Will your buyers come to you or do you take your sales to them?
Choose payment options
How do you get paid for products and services? What funding plans will be available? Determine how you accept payment and whether your accounting program will be cash or accrued. Want to send invoices, bank statements, and other billing options? How do you communicate collections?
How the product is delivered
One of my favorite sections in the business model is the product section. We get to define our product, decide how it is produced and how we deliver our products. Some products are easy to find, others require a little finesse.
I specifically remember a product that included ordering a mass production from an auto supply company, ordering boxes and then spending hours putting products into boxes and then sending them out via USPS at the end of each day. Labeling because my hardest problem. At each order, I downloaded shipping labels. After one particularly nasty week of shipping hundreds of boxes, my daughter found a “drop shipper” that did all the shipping.
We simplified our business model, increased our profits and cut a huge amount of labor from the shipping process.
The business model offers you a selection of methods for delivering not just one product, but multiple products. You can drop ship some while you personally send others and some can even be transmitted digitally. The key is to have a plan and know what happens to each product group.
Choice of service delivery
Another important component of your business is the overall development and delivery of services relevant to the endgame of business transactions. Each business has a specific number of services, but determining how these are performed, delivered and completed is part of the overall business model.
Functional business models can be as complete or as meticulous as you want them to be, but for more automated systems, or for systems operated by non-owner entities, the more complete business model, the easier it is to hire assistants to finish work.
Creatively put as much effort into your business model as you expect to get out of it. The better it is written, the more effective it will be.
Scorecards and a book of procedures can be important with your business model. These offer simplified business practices and distinctive directions and procedures for each business area.
If your business model needs some attention, you may want to contact a consultant.