How did you decide on your business model? Did you do much research or did you follow the path created by a successful entrepreneur? How confident are you that your model is working and creating the cash flow you desire? How well does your model fit your values, mission and vision? I’ve been researching business models and find that they can all be boiled down to 9 basic components. The magic is how you mix and match those components, how they are defined and where you put your focus.
This blog series is designed to help you find and define those nine basic components and lay them down like brick pavers that creates the fastest path to profit.
We need to start with my definition of business profitability. It may not be what you expected! The Merriam-Webster dictionary defines profitability as that which “produces good or helpful results or effects”. When you look for profitability in a business, you want to look at more than cash flow. Revenue is a very important element, but not the most important element. Without positive cash flow you don’t really have a business, you have a hobby or worse, a waste of time and resources. If your business is truly profitable, you are:
- generating income
- creating value
- making a difference
- using your gifts
- caring for your soul
- nurturing your relationships
I’m sure you know of a number of businesses that generate cash but do not offer profitability in these other areas. How does your business measure up? Is it truly profitable – to you, your family, your community, your world?
Watch for upcoming posts on how you can create a truly profitable business model, whether you are just starting out or have been in business for years!