Your business model is key to your ability to make money and be profitable. You must be able to choose your business model and carefully craft your products or services accordingly.
A business model is defined as a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing.
one of the most critical elements of any sustainable business is achieving a positive cash-flow. Without that, even the best intentions will fail. Having a few options available in terms of how you deliver value also helps diversify your income. Options give your customers choice and help you extend your resources.
Most important is that you figure out what types of products and services work best in solving your customers’ needs, so they deeply value your work and keep coming back for more.
DIFFERENT TYPES OF BUSINESS MODELS
To grow a business all the above must be managed with a focus on playing big — this is an approach to wealth generation that maps your idea or concept to the model that will allow you to make the most money for the least amount of resources (including effort and investment).
For independent business owners your business model will likely be one of the following:
You produce a physical product (e.g. c) and sale it. For profitability, you must manage the cost of each item produced (e.g. fabrics) against what you can charge for that item.
You purchase physical products and then resell them. For profitability, you must manage the cost of acquiring each item against what you can mark it up and resell it for.
You design physical goods (e.g. artwork) or services (e.g. website designer) in limited quantities. For profitability, you must manage your capacity to create against what you can sell your goods or services for.
You curate physical or digital goods or information and charge for access (such as publishers) or make a fee for influencing the purchase decisions of others (such as bloggers). For profitability, you must continually build, engage, and influence a community of people who trust you.
You coach, consult, educate, or mentor individuals or organizations for a fee. For profitability, you must manage your capacity to advise against what you can sell your knowledge for.
Which one are you?
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