Ditch the Business Plan, Embrace the Business Model

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Ditch the Business Plan, Embrace the Business Model

 

Ways to get more money

 

I see it all the time, a novel idea, a passionate team, the illusion of the market, an unsophisticated investor, and the numbers… showing the inefable reality that the business is failing – Alternative facts perhaps.

The MAIN reason why Entrepreneurs or Small Business Owners don’t like Business Plans is that they are not flexible enough to help them find other ways to get more money.

They are trapped into following a PLAN instead of developing a MODEL.

One of the best ways to snap out of the Business Model Trap is to create a culture that welcomes money. Not at the expense of others, but WITH the intention of creating value and capturing some of that value. It works flawlessly.

There are many ways to get more money

  1. Start a band
  2. Do chors
  3. %87^&$^)(#*&(#@*&5
  4. Mayka lemen ade stand

The write ups of a 7 yrs old sums it up. If you want to do something, you need resources. Either if you own them or if you use them. To get those resources you need ingenuity, innovation, charisma, attention to details, knowledge…  You need any of this but none if you don’t take action.

The main problem with the business model is that it usually represents an ideal much explored PRIOR to taking action. Reality sinks in and we are stuck in a pre-pivoting mode until something happens. The time comes were the bud can no longer keep the petals hidden,  the cloud can’t contain the water, the ideas can’t be shut down.  The main issue becomes then how to move that energy forward, how to channel those thoughts, how to build a solid yet flexible base for a business.

And this is where business models work better.  1-2-3-4 Steps to help you and your team navigate through the commercial puzzle and create or transform your business so you are energized, inspired, and ready to take appropriate action.

Four Steps to a Business Model

  1. Find your unique gift in life. What are you here to do, what do you enjoy most, how do you put that to the service of others, how do you keep the internal locus of control, knowing that your inner voice is at the core of your business.
  2. Find your ideal clients, and create an offer for them. Those who need your offers, and ditch the ones that don’t. By focusing solely on the clients you absolutely adore working with, you can focus your energy and attention – and your company’s resources to those clients. Expect a reward from your offers that will satisfy your financial needs. Establish a connection between your clients and those that need to deliver your message to your clients.
  3. Establish the processes that will make your business’ flow. Organize your activities into marketing, operations, delivery, administration, and contemplation. No business can survive without inefficiencies, but no business can survive without processes. Give yourself actionable items, early wins, and long term goals, so you are not afraid to take baby steps in the wrong direction. Make a couple of milestones… in terms of clients, income, and costs. And then multiply your income by 10 or 100 and watch a new world of possibilities emerge. There is nothing inspiring in thinking small. Baby steps will take you to the stars if you are going in the right direction – including taking a lift on a SpaceX test rocket! (find partners that think high, get an advisory board).
  4. Keep score. Money is the blood of any business, keep it healthy. Focus on ways to make money doing what you like, working with whom you love, growing as you gain experience, dump what you don’t feel is working, including clients you don’t like working with or whom you can’t help, invest in you and in your business, find sponsors and above it all, keep the numbers clean.

A business plan is an excellent guide for strategic planning, it helps you organize your ideas and relate them to others, it helps you avoid some mistakes, communicate your goals, evaluate your rewards and commitments, but, like the ADN (genetic code) it is a recipe, and you might not have all the ingredients that you need. What you make out of it will depend largely on what you have available.

A business PLAN is obsolete almost as soon as it is finalized.

 

By |February 21st, 2017|Categories: Blog|0 Comments

About the Author:

Alicia Castillo Holley is an international speaker and researcher on innovation, entrepreneurship, and venture capital.

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