Is Your Business Model Working?

business modelIf you’ve ever watched the TV show, “The Profit,” you know that his simple, yet very effective approach to evaluating a company before he invests in it is based on 3Ps: People, Process, Product.

Under PEOPLE comes management, employees and agents, etc. PROCESS covers a wide area – the internal procedures, inventories, the marketing, finances, production, sales, and so on. PRODUCT covers whatever it is that the company produces or provides for its intended target market(s).

Many times in addition to finding people in positions they shouldn’t be holding, he finds the overall business model is flawed… sometimes severely. Perhaps the company’s product is not being properly exposed to the market or its packaging or pricing is off, or the product needs modifying and so on.

Other times the internal procedures are out of whack or even missing.

It’s a very entertaining reality show, and if you are in any type of business, you can learn things just by watching the show. I highly recommend it. In my area I can catch it on the CNBC network.

According to Wikipedia:

“A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction is part of business strategy.

“In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, target customers, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.”

To my point here… sometimes when a prospective client is looking for a “killer” website – which is a necessity today if you don’t already have one – they are actually looking for a solution to a problem with their overall business model, whether they are actually conscious of that or not.

business model

They are hoping that the new jazzy website alone will magically “save the day,” even though they have a broken business model.

Now I am not talking only about businesses whose business model is founded primarily on internet marketing. Obviously, if that were the case, they would be counting heavily on internet marketing and their website to “bring home the bacon”.

But any business – online, brick and mortar, or a combo of brick and mortar and online, can have a broken business model. Their marketing could be flawed, their organization structure screwed up, their supply lines inefficient. Or they could have flubby products or lousy service, or they could have a very poor financial management system in place or even a non-existent one.

If any of those negative situations existed, a website alone is not going to cure all ills. Yes, a good website could certainly get more attention for the company and generate leads, but many of those leads would simply be wasted due to the fractured business model.

A business owner or corporate executive or general manager needs to routinely be looking and checking all the areas under his or her control to ensure they are functioning properly and fulfilling their purposes.

I’m not talking about micro-management. That can drive people nuts. But an executive must look and ensure that the areas he or she is responsible for are performing properly and that the people in those areas have the things they need to do a good job, all within the company’s available financial resources.

With a good working business model and a killer website, a business can soar!

How’s your business model? Is it working? Do you have the right people? Good organizational structure? Effective internal procedures? Good financial management? Good marketing? Great sales? Satisfied clients or customers? Do you have a killer website generating sufficient leads?

How’s your business model? Is it working? Do you have the right people? Good organizational structure? Effective internal procedures? Good financial management? Good marketing? Great sales? Satisfied clients or customers? Do you have a killer website generating sufficient leads?

Written by Bob Nelson

Creative Commons Attribution: Permission is granted to repost this article in its entirety with credit to RESULTS PROFESSIONAL MARKETING and a clickable link back to this page.

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