Attractive Business Model

Do you have an attractive business model? A what you ask? Your business model is more than just “how you make money.” There are lots of ways of making money. My colleague, Gemini, provides 7 core ways. Another online resource suggests 22 ways https://www.scribd.com/document/72368472/22-Profit-Models. Yet another suggests 50 ways https://bstrategyhub.com/50-types-of-business-models-the-best-examples-of-companies-using-it/.

For many companies in transportation, an attractive business model includes well made products and a backlog of orders measured in a decade of years, as with airplanes. It probably includes some subscription revenue and recurring maintenance and replacement parts. Ask someone to buy your business and you will quickly learn if you have an attractive business model.

Your business model includes all of your overhead costs. Some transportation companies prefer to be asset heavy and own the trucks they run, while others prefer to be asset light and rent, lease, or outsource to keep their overhead costs lower. Even a company doing branding may choose to do some screen printing in-house, outsource others, and recognize a need to offer logo creation services. They think of products/services in terms of core/adjacent/edge. 

For many companies, it’s worthwhile to look at the 9 elements in the Business Model Canvas framework. These include

1. Value Proposition (The Core)
2. Customer Segments (The Who)
3. Channels (The How)
4. Customer Relationships (The Interaction)
5. Revenue Streams (The Money In)
6. Key Resources (The Assets)
7. Key Activities (The Execution)
8. Key Partnerships (The Network)
9. Cost Structure (The Money Out)

I refer people to https://www.strategyzer.com/library/the-business-model-canvas for this framework.

My own framework includes 7 core elements:

1. Customer, Sales & Marketing Channels
2. Supply Chain and Outsourcing of professional services, supplies, information, parts, raw materials
3. Market Constraints, Government, Economy, and the World
4. Risk of Disruption
5. Competition
6. Technology
7. Internal People, Products, Processes, Infrastructure, Capital/Cash

A brief overview of these and some other tools are available to view on Apple Podcasts at: https://podcasts.apple.com/us/podcast/business-accelerants-memos/id1378112857 in the episode “What’s Your GAME Plan for Business, Career, Life Presentation to IMA PDX”

Want to be featured in a future podcast? Check out https://www.linkedin.com/posts/paulmenig_podcast-manufacturing-technology-ugcPost-7401368026320957441-NOvZ?utm_source=share&utm_medium=member_desktop&rcm=ACoAAABp1SoB4dLCof8syZ4CL6wHQ0DYznqycOo

I hope you find ways to Accelerate YOUR Success.

and

Happy Holidays!