If you’re a digital entrepreneur who has heard the term “business model” and secretly don’t know what that it refers to, you’re not alone.
Most of us are experts at our craft, but not necessarily business.
Allow me to shed some light on this topic (and save you the MBA tuition $$$).
A business model is how you deliver value. It’s a strategic system comprised of the various products and/or services that you offer to customers in exchange for money.
To provide some context, here are three examples of business models:
A health coach who helps busy female CEOs reach their health goals through easy lifestyle changes, not diets. She offers three ebooks priced at $12 each, a group coaching program held twice a year for $199, one-on-one coaching at $900 per month for three months, and a yearly retreat in Palm Springs for $3,500. She markets these products primarily to her email list through her website and connects with the majority of her Most Valued Clients on Twitter and LinkedIn.
A business coach who helps makers and product designers create more impact in their businesses. She sells a physical book on Amazon for $18, offers a monthly subscription-based community support, training, and resource program for $39, sells an annual 8-week live group business training program for $3,900, and holds a yearly conference for $1,200. She has the most success creating revenue through in-person workshops to trade show participants who then become subscribers to her email list.
A medical doctor who runs a brick-and-mortar practice for women. She also offers a free ebook on her website, offers virtual medical appointments for $300 via Skype for clients who are not local to her area, and runs bi-monthly education programs for other health professionals. She advertises in the local newspaper, does guest appearances on women’s health related podcasts, and has a thriving blog and email list where she offers women’s health advice on a weekly basis.
Are you starting to get a clearer picture of what your business model could look like?
The rub for many entrepreneurs is finding that sweet spot between what you have to offer and the value that your customers want at the right time that they need it.
And your business model will evolve over time, as you grow and your customers’ grow. Designing your business model is not a one-time activity.
In fact, I suggest you revisit your business model every year to make sure it’s functioning properly and healthy, just as you would get a yearly checkup at your doctor’s office.
Curious about how healthy your business model is? Want to spot opportunities you may be missing in your model?
Join me for a Digital Strategy Intensive. We’ll review your current business model, and make a plan to get your business up to optimal health.