The Importance of a Business Model

 Adventure Parks, Business Planning, Value, Zip Lines  Comments Off on The Importance of a Business Model
Mar 202013
 

It’s no secret that one of my favorite shows on television is Shark Tank. My other favorite is Hell’s Kitchen, but that’s a different blog post… On Shark Tank, business owners present their companies and ideas to a panel of successful investors by doing a quick 3 minute presentation before the “Sharks” start asking questions.

The first question is almost always “what are your sales so far?” In other words, are people buying what you are selling? If the answer to that question is a very low number, the sharks ask why no one is buying yet. If the answer is a large number, the sharks will wonder why the business owner is seeking more funding. What they are really trying to discover is what business model the owners are using. How is the business engaging clients and making money?

A business model as several key components that you must consider whether you are starting a new business or looking to grow an existing one. They include:

  • Your Target Market
  • Your Value Proposition
  • Sales Channels
  • Client Engagement Strategies
  • Key Activities of the Business
  • Key Partnerships
  • Key Resources
  • The Cost Structure
  • and Revenue Streams

If one of these components are missing from your business plan or strategic plan, you are not going to be as successful as you could be. One recent contestant on the show recently stated to the sharks when they asked about her business model “We don’t have a business model, we’re making this up as we go!” It should be very telling that all of the sharks lost interest the second that came out of her mouth.

What is your business model? Could you explain it to someone in a few minutes?

Paul

(My 10 year old typically watches the show with me. Last week I had missed the intro of one of the presentations and I asked him what was going on with the proposal. He replied “He’s been in business for six weeks, has $10,000 in sales and is giving his company a valuation of $500,000. I think he’s going home disappointed.” That’s my boy!)

http://www.strategic-adventures.com/content/business-plans

The 4 things every business owner must know – Parts 3 & 4

 Marketing, Value  Comments Off on The 4 things every business owner must know – Parts 3 & 4
Jun 142012
 

#3

You must communicate the idea of an Ideal Client Relationship. What is an Ideal Client Relationship (ICR)? Well, it’s different for everybody. It consists of a series of behaviors that you want your best clients to exhibit in their relationship with you. Think of the way that your very best clients interact with you. These interactions are the basis of ICR.

Here is our ICR behavior list for Strategic Adventures:

  • They see the value of a long term engagement with us
  • They provide us with a testimonial
  • They follow our advice and recommendations
  • They experience a measurable outcome
  • They use us multiple times for different services
  • They respond to proposals in a timely manner
  • And they refer others to us

Now, I have yet to have a client fall into my lap that did all of these automatically. It would be nice if the world worked that way. So how do we get clients to start behaving this way? We let them know that this kind of relationship is possible.

Ultimately, the responsibility is on you. You have to make the relationship happen, it is a two way street after all. Let use the our second ICR characteristic as an example: They provide us with a testimonial. In order to get a testimonial you have to do at least two things.

1. You have to do great work for your client that is worthy of a testimonial

2. And you have to ask your clients for the testimonial.

You have to do the work to get ICR’s.

#4

You must communicate the possibility of an ICR with the Qualified Prospects we identified in #2. That’s all there is to it!

 

What are your ICR characteristics and how are you communicating them?

 

Paul

http://www.strategic-adventures.com/content/business-plans

The 4 things that every business owner must know, part 2 of 4

 Marketing, Value  Comments Off on The 4 things that every business owner must know, part 2 of 4
May 232012
 

The second thing that every business owner must know is that you must communicate with qualified prospects. Not all prospects are created equal, which means that not everyone with a pulse is a potential client. So who is a qualified prospect?

There are three criteria for being considered a qualified prospect.

1. The prospective client must have a need for the service or product that you are selling. Contrary to the teachings of many sales training programs, Eskimos really have very little need for ice…

2. The prospective client must be aware of their need for your product or service. It is often your job to give them the opportunity to become aware of their need, using a little something we call marketing. If they are not aware of their need they will see no reason to contact you to take you up on your offer.

3. The prospect must be able to pay for you to satisfy their need. This is often an overlooked component of what constitutes a qualified prospect. The true qualified prospect has the ability to make the financial decision required to purchase your solution.

All of your marketing efforts should be going towards getting your message out in front of more and more qualified prospects.

Who is a qualified prospect for you? What need are you trying to fill?

 

Paul

http://www.strategic-adventures.com/content/business-plans

Marketing isn’t a gimmick…

 Marketing, Outcomes, Value  Comments Off on Marketing isn’t a gimmick…
May 012012
 

Marketing isn’t some trick or gimmick to coerce someone to buy what you are trying to sell. Marketing is the communication of your promise to deliver a remarkable experience or outcome to your clients. There is no magic trick to marketing, it is simply putting your promise in front of people who care, on a consistent basis. When you try to use a gimmick, you get in the way of the promise, and that keeps you from developing Ideal Client Relationships.

 
Paul

What do you do?

 Outcomes, Value  3 Responses »
Apr 182012
 

How do you answer someone when they ask “So, what do you do?”
Do you say:
-that you are a facilitator? (which in some countries means that you arrange illicit encounters…)
-I am a zip line operator
-or worse, that you are an Experiential Educator (and follow that by trying to explain what experiential means.)

Try this instead – answer with the outcome of what people get from working with you.

My answer? I help business owners make more money and serve more clients.

Now tell me, what do YOU do?

Paul

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