Throughout my 18-year career as an entrepreneur and business consultant, I’ve noticed a number of patterns and telltale signs that can pretty much predict whether or not a company will experience success over the course of its lifespan.
Time and again, the one factor that often makes or breaks a company is the organization’s choice of business model. Simply put: Your product could be incredibly unique, valuable, and in-demand—but if your business model doesn’t lead you to wealth, your company will almost certainly fail.
Now, when I say “wealth,” here, I’m not saying your main focus should always be on making more money. As you know if you’ve been listening to the Insane Growth podcast since the beginning, making money should always be secondary to providing value to your audience.
But this isn’t to say that making money isn’t important at all.
First of all, you definitely shouldn’t be looking to give away value and get nothing in return. After all, you went into business to make a comfortable living, right? That said, on the very surface of things, of course you want your company to make money, so you can support yourself, your family, and your dreams.
But it’s also worth noting that the more money your company brings in, the more you’ll be able to reinvest into making improvements as necessary. On the other hand, if your company isn’t bringing in all that much in profits, you may not be able to afford to make even the smallest of improvements to your business.
It’s not enough to have an incredible product (although this is a must-have, as well). To build a successful company around that product, you need to choose a profitable and sustainable business model to operate under.
In this episode of the Insane Growth podcast, my goal is to help you determine the business model that will allow your company to grow, and enable you to become truly successful as an entrepreneur.
First, I talk about the various components of a business model, including:
- Payment model(s)
- Pricing strategies
- The size and structure of the organization
- The location and proximity of the team’s members
For each of these components, I’ll dig into the pros and cons of the most popular choices, and provide suggestions for companies operating in a variety of industries. I also discuss three business models which have proven to be successful in today’s economy—as well as three that you should avoid at all costs.
While you can definitely take this advice at face value, it’s more important that you understand why certain business models are or are not conducive to success. Again, it’s all about sustainability and growth; if your business model doesn’t lead to profit and wealth (for you and your company), there’s no way your company will succeed.
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