Do you understand what a business model is? Have you considered yours before setting up your business or are you just hoping for the best?
A business model is defined by WIkipedia like this:
A business model describes the rationale of how an organization creates, delivers, and captures value – economic, social, or other forms of value
I don’t think this is very helpful for those that are new to business and over complicates something that is relatively simple. So, in my own simple words:
A business model is how you structure your business and services/products.
OK, so it is a little more than this and it needs thought. However, it still goes down to the structure of your business and how you make money. Below I give a high-level overview of a business model and some ideas on semi-passive and passive income.
Your Business Model.
As mentioned briefly above, your business model is how you structure your business. For most us, when we start out, we consider our ideals clients (hopefully) and what we think we want to do. What we miss more often than not is how that fits in with what we want to achieve. Think about it:
“If you want a business that allows you to work when you want from wherever you want, why would you create a business with only services that require your constant presence?” Mary Cushen.
Being clear on your business model from day one gives you focus.
When you are looking at your business model, think not only of your ideal client, but why you are starting the business (what success is to you). If you are after more time and freedom, build a model that supports that.
When we start our business we focus on the services we think our ideal clients want and what we think we want to do. What we don’t always think about is how it links back to the overall goal we are trying to achieve.
As for most of us this includes having more freedom, why do we then create a business that is based on 1-2-1 activities; things that require us all the time? How does that help create the freedom we dream of?
When creating your business, think about your end goal. If freedom is something you want, consider what services or products you could offer (remember it doesn’t all need to happen now) that don’t need your time on a 1-2-1 basis. For example, could you offer group sessions or workshops. Are their guides or books you could create that people would want to buy?
Building a business from the start that allows you to reach your ultimate end goal, saves you from headaches later down the line. Yes you may start with 1-2-1 but have in your strategy plans to evolve and how you will adapt to ensure these additions still stay on brand.
Assess Your Business.
Take some time to assess your business against your end goals. Does your business model currently support your goals? Does it allow you to scale and expand without causing you to rebrand? If not, then you need to sit down, work out what it is you want, create a high level strategy (five or ten year one if you prefer) and start looking at where you can start to introduce freedom into your business.
You will only get freedom if you create services that do not require your time. Although you may not see how this can happen in your industry, believe me, there is a way. There are a few ideas below to get you thinking.
When you are looking at ideas for your business model that help generate income that don’t require 100% of your time they are called semi-passion (some of your time) and Passive (none of your time). They require most of the work to be done upfront so don’t think they are a quick win, but once they are up and running, you have more freedom but still earning, in most cases more money.
Remember these ideas are items that run alongside your main business. They are meant to supplement your income so you can have the freedom you desire. You can start these from day 1. You don’t need to have an established business. It’s about identifying you as the expert and building your audience.
You may wish to have a fully semi-passive or passive business model; that is possible and I can recommend an amazing passion income coach if that is what you want to achieve.
Before looking at semi-passive and passive ideas, here are a few other things to consider:
- Staff – Consider taking on someone to do some of the work to free your time. This could be a VA (virtual assistant) or PA (personal assistant), a marketing assistant or agency, a cleaner or nanny, a general assistant or even just a receptionist. These people can all do tasks to free your time.
- Automation – Automating your processes is something you should do as soon as possible. There are so many ways to automate that, if you’re not, you are wasting some of your precious time. There are loads of free and paid tools for you to take advantage of.
- Streamlining – If you don’t review your processes regularly and get feedback from people who are going through your processes, you are missing a trick. There is always a way to improve a process so make sure you do review and get feedback regularly.
Do you find yourself saying the same thing over and over to different people? Is it something that needs your physical presence but could be done as a group? If so, an in-person workshop is a good start. You provide the same message as you would 1-2-1 but to more people. It’s takes the same time to tell 20 people as it would to tell 1 (although you may want to make time for a Q&A).
If it doesn’t need your physical presence, save money and do it online. You can use video software like Zoom or GoToMeeting and even record the session to share with participants afterwards so they have something to refer back to.
Low value, low maintenance. These are a great way to share your knowledge and make some money. These are normally low cost, however, once you have created it, it have little maintenance except for the odd update. You can set it up on your website easily (in most cases) and link it to either Stripe (which I recommend) or PayPal for instant payment. Once paid, they can download the item instantly.
With these, you cannot just create it and put it on your website (or chosen platform). You do have to do some marketing for them. Depending on their cost, you may wish to just use organic marketing to maximise the profit.
If you sell do-it-yourself kits or your client is more of the do-it-yourself kind of person, you can create a how-to video series. You can use the first one as a lead magnet to build your audience.
As with e-books and guides, these are lower priced but low maintenance. If you are doing videos, remember to include subtitles.
These are a great way to share your knowledge in bite-sized chunks. Normally low cost (less than £500 but mostly under £250), these courses normally lead on to something more expensive (intensive course, 1-2-1 work, etc.). They can but delivered in a variety of ways so think about what is best for your ideal client. You want them not only to buy it but do it so it has to be relatable and easy to follow (especially if it’s pre-recorded).
Formats for these can include:
- Email sequence
- Pre-recorded videos
- Course portal (i.e. Teachable or Thinkific)
- Through Facebook or similar group
This type of course is normally semi-passive as it requires some of your time for people to see the benefit of the cost. Normally priced between £500-£2,500, these attract people who are serious about taking action.
You need to build this type of course as a community as well as delivering some (if not all) of the content. VIP options are always a good way to offer something a little extra for a bit more.
I personally love masterminds and love the one I’m in at the moment. These high ticket items can only be described as a community where everyone learns not only from the instructor but the other members of the mastermind. It requires you to find the right group of people so you cannot accept everyone that applies. Members are low but the price tag is high. There are plenty of masterminds with a fee of over £25,000 but there are a handful of smaller ones.
Just be careful how you market a mastermind. People have high expectations of them and you have to deliver on your promise.
Need some help with your business model?
I’ve been there. I know what it’s like to spend hours in your business, leaving your feel exhausted and wondering if it was the right thing to do. Creating a business model that reflected what I was trying to achieve in life, changed everything for me. However, I had to action it as well. It gave me focus. It also improved my mindset and helped me fall in love with my business again.
If you would like a complimentary 30-minute chat to discuss how I could help you move forward, feel free to get in touch. I am always happy to answer any questions you may have.