Your business model is the underlying structure of how your business creates value. But what does this really mean? And why is understanding your business model important?
What is a business model?
Your business model is the underlying structure and organisation of your business activities. It defines in general:
Who your key stakeholders are
The value you provide to your stakeholders
The relationship you have with your stakeholders
The channels and resources you will use to deliver value to your stakeholders, and
how all of the above differ from your competitors.
Why is your business model important?
Your business model is important as it defines the parameters of what your business can, and does, do. Your business model influences your strategies.
For example, your business model ...
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Even though we know the benefits of systemising more of our business, who really wants to do it?
Here are 3 easy ways to get your team systemising more of your business:
1. Start small
Ask staff to draw up a checklist or flowchart that shows the key elements of the process. This is easier than writing a detailed procedure (ugh!), and the summary checklist or flowchart can be used as a discussion tool to flesh out more detail where needed.
2. Start positive
Resist the urge to focus on a problem area. Start with a process that works well as your team will be more comfortable showcasing an area they feel good about.
3. Use their efforts
Make sure you use what they have prepared positively, ...
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22nd of April, 2015
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In: Department Manager, Financial Management, HR Manager, KPIs, Large Business, Leadership, Medium Business, Middle Manager, Owner Operator, Self Management, Senior Manager, Small Business
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How to make better decisions standard
In these crazy-busy times, it is easy to develop a knee-jerk approach to decision-making. So what can you do to make it easier to 'hop in the helicopter' to gain a more informative perspective?
Hop in the helicopter
'Hopping in the helicopter' means getting above the noise and busyness to gain a clearer understanding of an issue. Being in the helicopter enables you to see things you couldn't when in the thick of things. From the helicopter you can see patterns, opportunities and even the significance of the issue. So how can you make it easier to hop in the helicopter?
Track your KPIs over time
Assessing a single measure in time gives no indication of the direction it is taking.
It is essential ...
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We see it over and over again. Managers using a single KPI to assess performance and decide how to improve it. So why is this wrong and what should be done instead?
KPIs (Key Performance Indicators) are an essential tool to help managers make decisions to improve performance. But unfortunately some managers are using KPIs incorrectly, so let's explore how KPIs work and how to use them.
A KPI should never, ever be used on its own, as it tells us very little
Avoid this number one mistake!
When using KPIs, always use a balanced range of measures that you believe relate to the end result you want. Then you will have information on the impact different activities have on your end result.
Always us a range ...
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It is essential to have clear strategies, but they won't be any use unless they do these six things
Your strategy must:
Define, in general, how your business is going to achieve its goals
Maximise the $ potential of your business
Articulate the main points of difference from your competitors
Unite and focus your team's efforts
Provide clear parameters for decision-making
Facilitate increased profitability, growth and longevity.
What is strategy?
Clarify your strategic plan to achieve your goals
Define what is core, unique and valuable about your business
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We all have our reasons for being in business - what are yours? And more importantly, what do you want to achieve next with your business?
Why what you want matters
As the owner of your business, your business exists to serve you.
As the leader of your business, your passion and commitment to your business, or lack of, influences your whole team.
Therefore it is important to clarify your personal goals for your business, before working on the business goals you will share with your team.
So, what do you want from your business?
Increased profitability and cashflow?
Are you working hard, but not seeing the financial rewards?
Growth?
There is no point growing your business, if the headaches are only going to grow too. Why is growth ...
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