Closing the Gap: How to Define your Business Model

Closing the Gap: How to Define you Business Model

Closing the GapWhen you know what you are good at and what you are not good at, and then you know what you love and want your life to be like (which is often the opposite of what you don’t want it to be like), then look at what you like about where you are and what you don’t like and plot a course to get to your ideal lifestyle.

Once I knew that I wanted to work from home around the hours of my childrens’ school, and I didn’t want to deal with furniture suppliers, but I did love solving problems and marketing, I was able to move forward.

In my case continuing with the business model I had created was no longer viable. Could I have changed the model and brought it back to an internet only business? Yes, but then I would still have to deal with the manufacturing of custom furniture which would not be in line with my passions or strengths. In my case, there was only one decision.

You want to think about how you might get from where you are to where you want to go. Take some time to think about how you might “close the gap”. Don’t pressure yourself to have all the answers right away. Sometimes they are obvious and sometimes they are not. It may take time for the answers to reveal themselves. It may be expedited by having someone who is not so close to the situation, like a business adviser or coach, take a look and make suggestions.

Let me give you some examples of how you can “Close the Gap”.

Let’s say you are passionate about flowers. You are thinking about opening a florist. Can you get to a 6-figure income as a florist? Well, probably, but you may have to open multiple florist shops and you may have to supply weddings or businesses. A single retail floral shop will probably not get you to that 6-figure goal. You will need to achieve a large volume of sales to reach that income goal.

Now let’s say you want to get to 7-figures or more. Can you do it with a floral shop or chain of floral shops? It’s not likely. In order to achieve that goal, you are going to have to look at business models that affect the entire industry. Think of FTD. Remember how they linked all the independent florists together so that you can buy flowers from your local store and then a store located somewhere else would deliver those flowers for you?

Another example is 1-800-flowers.com. They were one of the first to take the floral business to the internet on a national basis. There are other examples. There are people who changed the way flowers were grown and shipped to florist at a wholesale level. This is another example of a company that improved inefficiencies in their industry and improved the economies of scale to reach huge income levels.

Building a 7, 8 or 9-figure business isn’t for everyone.

You will notice in none of the floral business models I just mentioned will the founder be hands-on dealing with flowers on a day-to-day basis. You will be a business person running a business and will need to have or develop the skills to do that.

If you can combine your passion with your business skills to achieve the dream, GREAT! Most of the rest of us might have to make adjusts to our business model, learn new skills, or pick a different industry altogether. It just depends on where you are starting and where you want to go.

Exercise: Close the gap

Here are some questions you will want to ask yourself to help you close the gap.

  • Does your current business allow you to utilize your strengths and reduce your weaknesses (perhaps even outsourcing the work you don’t like or do well)?

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  • Does your business model support your lifestyle goals? If not, are you familiar with one that will?

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  • Are their changes you can make to your current business that will bring you inline with your passion and lifestyle goals?

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About Debra Zimmer

After 25 years of growing entrepreneurial businesses at companies such as Microsoft, where she attracted 700,000 members into an online community in 18 months and then grew a second one to 250,000 members in 10 months, Debra Zimmer then struck out on her own to grow an online retail store to 6-figures of income and put it on AUTOPILOT for 3 years. With an engineering degree and an MBA from Columbia Business School, Debra is the undisputed expert in helping experts, entrepreneurs and executives to focus their brilliance and magnify their impact using social media and internet marketing tactics.

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