You may already have your Business up and running… or you may have just been thinking about it. Either way, if you’ve never spent 20 minutes building out your Business Model, then you probably aren’t sure how much you can afford to market and scale your business.
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Business Model vs Business Plan
A Business Plan takes days, even weeks to put together, whereas the Lean Business Model takes about 20 minutes.
Lean Business Model is designed with the Lean concept front and center – fast, concise and effective.
It focuses on problems, solutions, key metrics and competitive advantages. It is an efficient means of clarifying the marketability of your new company… or just a new product or service
Do I need a Business Plan?
Experts provide varying opinions, but Lean startups have been trending away from cumbersome business plans for years in favor of the dynamic Lean Business Model.
As most Lean startups are “bootstrapped” – put together on the cheap and over time by whatever means the managing partners can secure – they don’t require a business plan that forecasts years of profits to seek investment funding.
However, it would be foolish to launch a new business, product or service without fleshing out the essentials of the Lean Business Model.
Even if you’ve already been in business for a number of years, if you’ve never gone through this quick exercise, it will likely shed light on where you struggle the most.
DOWNLOAD YOUR OWN EASY-TO-USE Lean Business Model POWERPOINT FILE NOW
The essential elements of the Lean Business Model
LBM’s have 9 essential elements:
1. Problem: What problems does your target audience(s) have?
1b: Existing alternatives: Competition. How are your customers coping with these problems today?
2. Solution: Match each problem with your solution.
3. Value Propositions: What are we delivering to the customer that is making an impact on their lives? (Note: this is much harder than it seems, which is why I break this out separately in my Over50StartingOver course)
4. Customer Segments (target audience): Who are your most important customers?
5. Channels: How are you going to reach potential customers (prospects)? Which are most cost-effective?
6. Unfair Advantage: Similar to Value Proposition, but this describes what is inherently unique about your offering that can’t be duplicated by your competition.
7. Revenue Streams: What avenues of income will you have? Estimate on a single customer’s annual worth.
8. Cost Structure: Estimate annual costs of running business — rent, employees, online expenses, travel, auto… This helps understanding how many customers need to be obtained annually.
9. Key Metrics: What are you going to measure for Acquisition? Conversion? Upsell? Google Analytics and Facebook Insights are very handy here.
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Example: Susan is a former competitive body builder that wants to be a personal trainer for people of above average means. She enjoys one-on-one workouts with her clientele most, but she also wants to do a couple group workouts each week to help her reach her goal of $75k for this year.
She plans to create her own video training series that she will launch the following year, allowing her to continue to scale. But, for this year, she needs to figure out how many one-on-one clients she needs to work with, at what price, to clear $75k after the estimated expenses are accounted for.
Download your FREE Lean Business Model PowerPoint now. You’ll see Susan’s Model completed as an easy-to-follow example.
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This is the foundational step for my online course, the Over50StartingOver: Best Brand Blueprint to online success.
It’s a step-by-step guide on how to Build Your Best Brand so you can convert more of those prospects into customers.
The cart opens for a limited time August 1. Download the Lean Business Model now, and I’ll offer you introductory pricing of 197.00 on August 1st. It will go up to 499.00 thereafter.
Whether you’ve already created your website and it hasn’t been very successful, or… if you’ve been wanting to launch your new Dream Career – This Lean Business Model is your starting point.
Over 50 Starting Over is my DIY program for the not-so-technically inclined that want to create their own lead generating online presence. It is powered by my years of experience providing these services with my company EdwardsCom.net. Barry Edwards, author.
The post Starting your own business in 20 minutes: Lean Business Model appeared first on Edwards Communications.
