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.
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 . . .
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.:
- Mission/vision statement.
- Company and product/service description.
- What differentiates your product/service?
- Market analysis: competitors, fit, market share target.
- Description of management team- experience, successes.
- Plan to market product/service.
- SWOT analysis.
- Cash flow statement.
- Revenue projections.
- 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.
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