Coming up With a Business Model

May 12, 2020

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In preparing for our board meetings this month, we started thinking about our business model and the role it’s played in our business development and growth.

Developing a business model starts by getting into the mindset that you can and should charge people for the work you’re doing. Once you’re able to shift the way you think about charging for your work, the next step is to select the right business model.

And it’s not just about choosing a business model, it’s about validating it as well. Testing your hypotheses and finding out if people will actually pay you for the thing you’re creating is even more important than the model itself.

In today’s episode, we talk about building a business to serve your customers, picking one business model to start, testing your hypotheses, and more.

Main Takeaways

When you build a business that exists to serve the needs of your customers, you can and should charge for the work you do.
Possible business models include:
- Services
- Events and workshops
- Digital products
- Physical products
- Advertising, sponsorships, and affiliate marketing
- Software
The business model you choose will greatly depend on the size of your audience—either the one you currently have or the one you want to build. Some businesses, such as coaching, only require a handful of customers, whereas something like software needs a larger number of customers to be successful.
Creating a Minimal Viable Product (MVP) is the only way to test your hypothesis properly and determine if people will pay for what you’ve created.

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Thought of the Day

“Good feedback is often really painful at first. You may physically feel it in your body or in your mind, even. But it’s actually a good sign that someone has gone through the time to give you the gift of good feedback. If the person really cares about you, the feedback is something to be considered even if it’s uncomfortable. ” ~ @BarrettABrooks

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