3 Elements of a Successful Business Model
“It feels like we’re cleaning out an old garage right now… everything is getting messier before it gets cleaner!”
My awesome client Lisa expressed this last week about the work we're doing together in her business.
One step forward, two steps back.
It’s true: Doing the work to create a sustainable business can feel like your business is falling apart before it thrives.
It's like the process of cleaning out a cluttered garage.
With Lisa, we returned to the foundations, establishing and stabilizing her business model before taking the business to soaring new heights.
Whether you’re in the early stages of building your business or are working towards that next big milestone, you need a business model that can grow with you.
Some people lay the groundwork, brick-by-brick, at the beginning of their business-building journey…
Others jump right into serving clients and find themselves down the road needing to intentionally slow down, reassess and establish a model that aligns with their bigger goals.
So, how do you know when your business model needs attention?
Here are three indications:
(1) You're not making enough money to sustain the business
(2) You've run out of time (and can't serve any more clients but you're not making the money you desire)
(3) The business is struggling to push past a revenue ceiling
Once you know that it’s time to attend to your business model, we zero in on the 3 core elements that contribute to its success: scope, size, supply.
Let’s dig into each one....
SCOPE
What does the entirety of your services look like?
What does your offer(s) entail?
Is it clear and specific on who would - and would not - benefit from it?
Prospective buyers need to be able to see themselves in your scope of services and determine whether or not what you’re offering is what they want and need right now.
SIZE
The size is the price you charge for your services.
There are many studies that have found that female entrepreneurs routinely underprice and undervalue their services.
There’s a whole psychology behind why women do this, which is for another article. But what I want you to take away from this piece is that the way you price your services makes or breaks your entire business model.
When you look at your pricing, does it feel like you’re being adequately compensated for the value your provide?
SUPPLY
The supply is your capacity to serve: knowing the number of spots you have available.
How many clients can you serve simultaneously?
How many more can you comfortably take on?
What systems are in place to assist you with this?
If you’re feeling unclear about your capacity, burnt out from your schedule, or not making the money you desire — there’s a good chance that zoning in on how these three factors work together is your best next step.
This process might feel like "cleaning house" while we’re in the midst of it, but the other side of this work ensures that your business thrives.
Helping entrepreneurs and service providers assess and refine their business models is one of my zones of genius. Together, we unleash new areas of opportunity that haven’t yet been uncovered so that your revenue rises without spending more time or energy on your business.