To close out the month of business models, here is a guest blog from Fundera about the importance of having a disruptive business mode. In it, you’ll find out what it means to be disruptive and then 7 ways to position your business to be disruptive. You’ll also get a list of companies with disruptive business models. Read on!
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This month, I’m talking all about business models, particularly what they are and why you need them!
Basically, your business model (or revenue model) is a roadmap for how your business will make money. In other words, what are people buying from you? Your customers have to pay you for something. Without paying customers, you don’t have a business; you have a hobby.
This sounds incredibly basic! But all too often, I will hear: “I want to start a community to empower women,” or, “I want to curate creative material online.” When I ask them how they plan to make money from these ideas, they’re not sure. Yes, you can absolutely create a blog or community or a movement, but it wouldn’t be a business until you have people paying for it. A business sells things (like a product or service) to customers in exchange for money.
Here are some simple and straightforward explanations of what can be purchased from you.
Most businesses sell products or services, or a combination of both.
For example, if you sell jewelry or oils or clothing or wine, you’ve got a product-based business. You deliver a physical product and your customer pays you. Conversely, if you are a coach, yoga teacher, hair stylist, or photographer, you’ve got a service-based business. You deliver a service and your client pays you.
But let’s say you make money offering training or advice, you may have a mix of service and product offerings, such as one-on-one consulting (service) and digital programs (product).
Or perhaps you fall under other categories. Maybe you’re a blogger, and you make money through advertising for companies. Or maybe you’ve created a software, and companies pay you monthly for technology use and support.
So, how will your business make you money?
In rounding up our entrepreneurship theme for the month of May, let’s talk about why it’s important to start a business for the right reasons.
The gist of this quote is this: Don’t go into business to make money. Success comes when you enthusiastically follow your passion.
Could that be the secret to success?
How many times have you heard people say, “I’m going to start this side business so I can make enough money to quit my day job and do what I really want to do.” Or, “I’m starting this side business so that I can make some passive income while I focus on my real passion.”
And were they successful? Unlikely. Why? Because if your heart isn’t truly in your business, people will feel it. It will be nearly impossible to sustain your business because it doesn’t have heart, passion and purpose.
In today’s hyper-competitive markets, people not only want to feel seen and heard and understood, they want to know that the companies they are supporting care. They want to know that these companies are dedicated to something real and true. These are the companies that have a definitive and inspiring reason for being in the world that goes beyond just financial profit.
Unless you have a strong enough purpose for your company to exist – which means an emotional link between what you’re working to create and why you want it out in the world – you will most likely not follow through on the work that it takes to launch a business and the stamina that it takes to keep it going.
To be an entrepreneur takes a fierce commitment to the hard work day after day after day. The most successful entrepreneurs are not motivated by financial gain. They’re motivated by three things: a drive to make a difference, a deep love of the game, and a desire to use their talents to impact the lives of others.
While building anything from the ground up is incredibly challenging, if you have the right reasons, you’ll have the resilience and perseverance you need to become a success.
Bottom line: don’t start a business to make money, start a business to make a difference.
You will want to create and review a pricing model for each offering you have within your business, whether it’s a service, product or both. For each offering, from a revenue standpoint, keep two things in mind: 1) how your offering fits into your business suite (which is all the things you offer), and 2) how you want to position that particular offering in the broader marketplace.
Then you have to know your costs. This includes upfront costs, variable costs, fixed costs, and anything that’s an ongoing cost. What do your profit margins look like when you factor these into your pricing model?
(Note: When you’re making your cost/expense estimates, I recommend making a list of everything you need and then contacting vendors and resources for pricing quotes. If you’re just starting out, I highly recommend you do as much as possible on your own. It’s always best to start as simply and as inexpensively as possible. )
After getting clear with your budgeting, it’s all about running the numbers and making some predictions. If this makes you feel a bit overwhelmed, just remember that we are all making guesstimates. We all have to start somewhere when it comes to pricing, and these projections get us going. My suggestion is to underestimate what you’re going to sell and overestimate what you’re going to spend.
I believe in providing as much value as possible for the right price, but discounting that price at any point is not recommended, unless you’re beta testing something, or providing a specific service to a valued client base. An example of the former could be when you first launch a new service and you want your current client base to give it a try in exchange for some valuable feedback. In this case, you can discount for a testing phase of your service. An example of the latter could be if you decide to customize one of your services differently for a particular group of people, or a particular client. I often provide a discounted rate of a customized service to a local wellness community that I work with. I’ve been a loyal member of the community since it first started, and I continue to work with the owners regularly, so the discount feels good, and I’m able to provide services for those who may not be able to afford me under regular circumstances.
To some people, discounting makes sense from a marketing and sales perspective, especially when you’re desperate for cash.
So, unless you’re testing a launch of a new product or service, or you’re very comfortable packaging a service at a discounted rate for a particular group, then you shouldn’t discount your services. In the end though, it’s all up to you.
If you want to create any result in your business, or even your life, you have to know two important things: what you want and why you want it.
When starting a business, we often jump in with as many service offerings as we can think of, and chase as many customers as we can – whether or not those services and customers are in line with our most authentic and true business vision.
Strong businesses are built on strong foundations. To create this foundation, you need clarity, because clarity equals power. The more clear you are about what you want and why you want it, the faster and easier it will be to create results.
Below is an exercise in clarity. Take out a pen and paper and get started!
Whatever it is, you have to be crystal clear about the outcome. If you just started, maybe you want to get your first 10 paying clients within the next 6 months. If you’re already successful, maybe you’re looking to double or triple your profit. Or maybe you’ve been at this for awhile, and you want to take more time off and automate more of your business. Write it down.
Now that you know what you want, you have to have a really good reason for wanting it. Without a clear why, there’s no emotion or excitement. If you have enough good reasons to do something, you’ll do it. Write it down.
If you have enough reasons to have your business, you’re going to follow through. When you’re clear on what you want and why you want it, you become unstoppable. Research proves it. Dr. Gail Matthews, a Psychology Professor at a University in California, did a study on goal setting with 267 participants. She found out that you are 42% more likely at achieving your goals just by writing them down.
Now, let’s talk about steps you can take right now to start getting the results you want. Here is a highly effective brainstorming exercise that you can use for literally anything that you want. First, take out a piece of paper. At the top of the page, select a goal from the list you came up with earlier, under “What do you want?” and write it down. Then, you will come up with a list of 20 ways you can bring this goal to life. What are 20 ideas you can think of to make this happen?
Say you’re a health coach, and one of your goals is to increase your profits enough to put aside money for an emergency savings account. You want this, because a savings account provides you with financial security. So, here are some ideas to bring this idea to life:
Hope this helps provide some clarity in your business. Good luck in making your business goals possible!
Many business owners out there never put “marketing” and “easy” in the same sentence.
After all, it can be complicated! How many times have you researched the latest marketing tactics only to feel confused, frustrated, overwhelmed and unsupported? How often do you find yourself spending time throwing marketing ideas at the wall to see what (if anything) sticks?
I can help you put an end to:
How can I help you? I relish in developing plans and protocols. I enjoy being knowledgeable about all things marketing. I thrive on organization, and I love simplification. I use these skills to help my clients make marketing easy. And yes, I just used “marketing” and “easy” in the same sentence.
If you want to learn how to use smart, honest online marketing to reach more people, align with the right customers, and convert more visitors into buyers, this workshop series is for you.
Through this series, you will finally be able to market your own business with confidence. You will gain the tools, skills, and insight to become a master of your own marketing. You will feel empowered to put your marketing in your own hands, ultimately fueling your profits, your purpose and your passion.
Taking place every 2nd Wednesday from 12:00pm to 2:00pm for 7 months
Tribe – 1819 W. Belmont Ave. Chicago, IL 60657
This series is for conscious, soulful, big-hearted entrepreneurs that want to either launch a business or change the way they market their current business online. Whether you are an action-oriented, ambitious beginner, or already successful but want to grow your audience and revenue online, this is the program for you. This program is perfect for service-based professionals, particularly in the wellness industry, such as coaches, therapists, trainers, and practitioners.
$50 per workshop or $270 for the entire series (a 10% discount!)
March 13: Defining Your Marketing Goals (Free Session!)
Take this free workshop to learn more about the program and to begin the process of building a strong, profitable business. This workshop will provide you with clarity about what you want and why you want it. You’ll outline your purpose, the people you’re serving, and the product (or service) that you’re selling. This workshop is also an opportunity for Christina to learn more about your business goals and become more acquainted with you as a person and entrepreneur.
April 10: Workshop 1: Planning Your Strategy to Stand Out to Your Ideal Customers
May 8: Workshop 2: Enhancing Your Website, AKA Your Digital Storefront
June 12: Workshop 3: Positioning Your Offerings to Maximize Profits
July 10: Workshop 4: Communicating Your Message to Go Viral
August 14: Workshop 5: Reaching Your Customers to Generate Leads Right Now
September 11: Workshop 6: Marketing Your Business with Proven Strategies
All too often, confident, capable entrepreneurs have business dreams that can help others and change the world, but they lack the marketing knowledge and skills required to make it a reality. That’s where I come in. I will arm you with the tools, strategies and resources required for you to do it all yourself – in a way that not only saves you time, but makes you more money.
I have a deep commitment to those that want to consciously and authentically make a difference through their businesses, and I want to help you get the word out. My passion is to help you build the business you desire and deserve through honest and authentic marketing practices.
What’s more is that your website shouldn’t just be pretty, it should be your best unpaid salesperson, working around the clock to grow your audience, generate leads and then convert them into paying customers.
The primary objective of a website is typically to acquire leads and sales. Other objectives include (but are not limited to) the following:
Now that the year is coming to an end, it’s time to think about how you will use the remainder of 2018 to improve your business and enter 2019 with intentional and proactive goals. One of the best ways to start is to be crystal clear on the reasons your website exists – for you and your visitor.
Then, you will use the following “3 C’s” to determine if your website is truly meeting your objectives: is it connecting, capturing and converting? Below you can find an explanation of each.
Connecting to your audience: Your website should be able to instantly connect your ideal customer to your business. It’s critical to make sure that your messaging and the way you format the website is really customer-focused. Think about what your ideal customer wants to see and read.
Capturing potential leads: As part of your marketing strategy, your website must be able to capture names and email addresses for the purposes of marketing to your customers and reminding them that you can solve their current problem. Besides making sales, growing your list is the most important reason for your website. Remember, transactions are built on trust, and trust takes time to build. Most people won’t purchase from you on the first visit to your website, so capturing emails in an effort to continue marketing to them is a great way to build genuine trust over time.
Converting leads into customers: Your website is your digital storefront, allowing you to convert leads to sales and generate business. It gives you the opportunity to really showcase your products and services, make offers, and sell! It should include enough information about you and your services and make it as easy as possible for the visitor to buy from you.
The 3 C’s will help you improve your website’s effectiveness. Refer back to it every now and then to ensure that your site is as effective as it can possibly be!
When it comes to pricing, you have to think about your big picture – your overall brand, the competitive landscape, and how you want to position yourself in the broader marketplace.
With every product or service you offer, you have to ask yourself basic questions when deciding on your pricing model. You first have to consider your income. How much revenue do you want to generate with this offering? And how much of each offering do you honestly think you can sell? Then you have to know your costs. This includes upfront costs, variable costs, fixed costs, and anything that’s an ongoing cost. What do your profit margins look like when you factor these into your pricing model?
Once you have an idea of what your pricing model entails, you can begin to think about pricing from a marketing perspective.
Which pricing strategy will you try next?
The objectives of the workshop included the following:
The goal of the workshop was to empower the members with the tools that would help them revitalize their business, re-engage past and inactive clients, and become more confident in how they present their business to their audiences.
The workshop was a mix of lecture, exercises and discussion. There were also opportunities for Q&A breaks.
The entire workshop was filmed so that it could be accessed via private link to the workshop attendees. Now, on its one year anniversary, I am making it available to you for free!
To those feeling stuck, lost and confused about marketing, this video will provide a great introduction into the world of marketing. Hopefully you will generate some helpful ideas from it! If you need additional assistance, you can check out my Empowered Marketing Program or my consulting services.
Enjoy!
The back to school vibe is all around – we’re heading back indoors, back to full work days (so long, summer hours!), back to the strategy boards and ready to take on the fourth quarter of 2018. Right now is the best time to take advantage of the energy of the season and use it to revitalize and jumpstart your business marketing. Take a look at the four strategies below for some tips on how to freshen up your marketing, prepare for the end of the year, and launch campaigns that will hopefully increase your sales and your bottom line.
Through these four tips, you’re well on your way to ending the 2018 on the right foot. Each one does take some time and effort, but none of overwhelming. How do you plan on jumpstarting your business this season?
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