The Business Model That Can Make Or Break You

We’re friends now so I’m gonna share something I don’t often admit in public.

4.5 years ago I signed my first client.

But I f*cked up.

It was a really proud day but also the start of what ended up being a string of mistakes.

Mistakes I want you to avoid.

If you’re thinking about starting your business or better yet, have started making some money.

What I’m about to share will save you a lot of stress, make you more money and lead to a better business.

You want that right?

Well, to get that you have to make sure you pick the right business model

Simple but so important.

When I started I just wanted to make money.

I saw an opportunity. Jumped on a trend. And built something that made money but had a ceiling.

Below are the 3 things I should have done.

Not started your business yet? Follow these steps to a tee.

Already started your business? Adjust your current business model using the steps below.

1/ Decide on your target audience

Who is it that you want to help?

Be specific. You probably want to help everyone but the narrower the better.

This is how you can have a bigger impact.

A good rule of thumb - narrow down your target audience based on demographics, psychographics and values.

Demographics:

Age range, gender, income range, education level, profession/industry

Psychographics:

Traits, values, interests, lifestyle preferences, hopes & dreams, expandable income (what do they spend money on outside of necessities)

Other:

Location, must-haves, must-not-haves, problems & pains

2/ Decide on the problem you’re solving

Regardless of your business.

It has to solve a problem.

Not sure how?

Remember the 6 profitable buckets I’ve shared before:

Solving a problem isn’t always about solving world hunger.

Sometimes it’s helping someone feel more confident.

Don’t skip this step. It’s an important part of building the right type of business.

3/ Choose the right model

Now that you know WHO you are helping and WHAT you are helping them with.

HOW you are helping is next on the list.

For most people, this is an insignificant step.

And little thought goes into it.

But here’s the issue you can run into.

You build a business that:

a) doesn’t fit your lifestyle and

b) doesn’t deliver for your customer in the best possible way.

Here are the decisions you have to make:

Firstly,

Product vs Service

Product - is it a physical product or a digital product?

Service - is it delivered in person or online?

Secondly,

Consider these two things:

1. What is best for your target audience?

Think about

• speed - how quickly your customers can get value (quicker the better)

• ease - how much effort is required from your customers to get value (lower the better)

• the likelihood that your product/service delivers on the promise (higher the better)

2. What’s important for you?

• What can you actually do

• What do you want to do

Think about your lifestyle, capacity, skill and desire

Lifestyle - if you have a young family then maybe an online business is better

Capacity - digital products allow you to serve a larger audience vs in-person 1:1

Skill - creating a physical product could have a steeper learning curve than a digital product

Desire - what is your preference

I hope you found this helpful.

If you did, let me know below and HIT REPLY and let me know what topic you want covered next!

That’s all from me.

See you next week,

Garvey

Whenever you're ready, there are 3 ways I can help you:

If you got value from this.