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May, 2013

Business Model: If You Can’t Draw It, You Don’t Understand It.

Business owner's, CEO's or Senior Executive's are responsible for not only operating their business but also perfecting the business model of that business. Many people run a business but do not look at it as a business model, which defines the unique manner in which the various operations of the company interact as a system to provide competitive products and/or services.

The true test of an owner or CEO is to ask them to describe (in many cases this means illustratively in a drawing) the business model of their business that provides the business a unique advantage in the market. Many can deliver an eloquent elevator speech but few can do a reasonable job laying out their business model when called upon.

Planning

It is like having to teach a subject to a group, then you really have to understand the subject matter in order to teach others. A good business leader will not only know their business but will also have the ability to capably present the business model on an ad hoc basis.

Example: What is my business model? I recently worked with a business owner who wanted to set the stage to sell their business at some time in the future.  While the business was “profitable” they were unable to describe what . . . read more.



Regards,
Mike Brice
Phone: (206)226-1617
Email
Blog


Feature Article

10 Essential Business Plan Components

by Patrick Hull, Contributor, Forbes.com

The toughest part of starting a company or running one is the development of a business plan. This article provides a quick primer on why a "business plan" is valuable in the startup and operation of your company. Too many this process is overlooked but it is invaluable when it comes to securing financing, attracting qualified people and to test your assumptions to avoid running into anything unexpected.

Here are the 10 components that should be considered for every business plan.:

  1. Mission/vision statement.
  2. Company and product/service description.
  3. What differentiates your product/service?
  4. Market analysis: competitors, fit, market share target.
  5. Description of management team- experience, successes.
  6. Plan to market product/service.
  7. SWOT analysis.
  8. Cash flow statement.
  9. Revenue projections.
  10. Executive summary.

Read the article for more information on why you should develop a business plan for the successful operation of your business.

Click here to read the complete article.


Note: Ask yourself the following questions.
  • Do you develop at least a one page business plan for your business?
  • Do you ask qualified business professionals to review your plan and critique it?
  • Do you measure yourself to the goals and objectives in your plan on a regular basis?

If you are looking for guidance on developing a business plan contact Mike to learn about the Business Planning services available from Brice Consulting for you and your organization.

Management Resources
Video(s): 
Business Model: Great animated presentation on the importance of the business model.
What is a "BUSINESS MODEL"? (3:00 min)

Metrics: Featuring Martin Klubeck, author of "Metrics: How to Improve Key Business Results"; and Tim Chester, Chief Information Officer at the University of Georgia.
Using Metrics (3:51 min)


Business Model: In this video, David Furse, the Director of Mentorship at the Nashville Entrepreneur Center, discusses how to visually sell your business to potential investors.
The Bar Pitch: Flowchart Your Business Model (1:15 min)


Decision Making: Baker Donelson's Entrepreneur Minute features attorneys, entrepreneurs and business leaders sharing advice on starting, growing, and running your business.
Know What You Don't Know (1:15 min)


Articles:
Customer Feedback: In a recent post, I discussed the importance of communicating with customers and not making assumptions about them. Listening to feedback from your customers can be incredibly helpful.
Tips for Talking to Customers

Investors: Entrepreneurs face a number of challenges when starting a business and I'm always impressed by the resilience of startups and their leadership. You've got to really believe in something to take the risk.
Three Tips to Approach Angel Investors


HR: It's definitely counter-intuitive, but it could be one of your top performers.
Who Do You Fire First?


Working Smarter: Your best brain years can be ahead of you, not behind. Recent studies show that if you can change the way you think, you can change the wiring in your brain to improve its function and health.
Why Single-Tasking Makes You Smarter


Networking: The most successful people in the world have a small, structured network of core contacts. Here's how you can, too.
6 People Who Determine Your Future


Pricing Strategy: Too many companies set prices based on their own costs or on the prices of their competitors. Here's what you should be doing.
Do You Even Have a Pricing Strategy?


Leadership: The stock price was falling; the business environment was turbulent. Analysts were critical. Yesterday's rising star had become today's football. If you've ever worked in a company going through a rocky time, you will know that the first thing to vanish is trust. The workforce no longer believes that management knows what it's doing, that the business plan still makes sense, that their investment of time will be rewarded. And as trust disintegrates, the company becomes dysfunctional and failure accelerates.
How naked leadership builds trust


Customer Service: Imagine my surprise last month when a mid-range business hotel in New Jersey gave such jaw-droppingly great service that I practically had to walk outside to make sure I didn't accidentally walk into the Four Seasons.
5 steps to becoming "unflusterable"


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