How to choose the best business model
So once you know what value you add and to whom, what's next? You can begin to think about about the best way to deliver that value for maximum affect.
Your business model is key to your ability to make money and be profitable. In this step of your business plan you should refine your model and carefully craft your products or services accordingly.
Having a few options available in terms of how you deliver value also helps diversify your income. Options give your customers choice and help you extend your resources.
Most important is that you figure out what types of products and services work best in solving your customers' needs so they deeply value your work and keep coming back for more.
Different Types of Business Models
The best business model for you is the one that maximizes your ability to make money profitably doing the work you love to do.
In my coaching practice, I help entrepreneurs determine or refine their business model by figuring out how best to meet the needs of their perfect customer, assessing the market potential and competitive landscape to carve out their niche, and choosing the processes and channels they use to deliver value.
To grow a business to six figures or move all of the above must be managed with a focus on playing big — this is an approach to wealth generation that maps your idea or concept to the model that will allow you to make the most money for the least amount of resources (including effort and investment).
For independent business owners your business model will likely be one of the following:
You produce a physical product (e.g. apparel) and sale it. For profitability, you have to manage the cost of each item produced (e.g. fabrics) against what you can charge for that item.
You purchase physical products and then resell them. For profitability, you have to manage the cost of acquiring each item against what you can mark it up and resell it for.
You design physical goods (e.g. artwork) or services (e.g. website designer) in limited quantities. For profitability, you have to manage your capacity to create against what you can sell your goods or services for.
You curate physical or digital goods or information and charge for access (such as publishers) or make a fee for influencing the purchase decisions of others (such as bloggers). For profitability, you have to continually build, engage, and influence a community of people who trust you.
You coach, consult, educate, or mentor individuals or organizations for a fee. For profitability, you have to manage your capacity to advise against what you can sell your knowledge for.