Business Modelling – 8. New Rules
New Rules:
Business Modeling.
The old rules governing Business Modeling are:
- It is a 45 page document done once before you start a business and then forgotten
- It is not all that important because it is not effective because it is not understood
- It is confused with a Business Plan
- It is mostly done by dull accountants, of the “grey suite” type, who produce Business Models, not models of how businesses can succeed
The new rules:
- Its no longer styled “Business Modeling”, it is rather the filter which influences or determines how you operate your business on a day to day and year to year basis, to achieve ………………………
- It can change because circumstances and goals change
- It is simple, but often, another business person’s input is a good idea
The process is based on a series of questions in 4 groups:
- Foundational level – Keep It Simple Stupid
- My Biz Level – Your unique business
- Non Negotiable level – Your rules of doing business
- Action and results level – The sales get worse otherwise
Some of the questions posed in these categories are, for example:
-
- How do you create value? – How do you produce client satisfaction?
- What is you exit strategy? – Is there more than just surviving?
- Do your goals affect others? – How do you create a win / win?
- ………………..
These questions are designed to pinpoint what matters in your business and therefore what will make it be better than your competitors.
The simplicity is that you don’t have to work out the process, it is already done and has worked for many people. All you have to do is put your mind to the questions which will start the ball (avalanche) rolling.
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