Transcript: "Business Models"
Again, observations from the market show they are companies that understand what they’re trying to do simplistically from a business model perspective, that really enables them to focus on their core areas and think about what are they doing well, what aren’t they doing well etc.
So, we’re going to go to huge technology today, and I’m going to share a whiteboard with you and draw you a model to try and give you an example of what I’m talking about. In this case to, to help you see what I mean, I’m going to draw you a model that we use for consulting.
We also help companies draw models for their own particular business to help them think about the key elements of their business. Now to do this, I’m going to turn off the video and share a screen with you and try and draw this out for you. So, hopefully you will be able to read it with my drawing and writing skills, lol, but it might just give you an idea of what I mean and how we do this with other organizations.
Okay. I’m just going to share a whiteboard with you and I’ll draw your model, so you can see what I mean. We try and do this as simply as we can, therefore in this case, I’m just going to draw you a triangle.
This is the model for consulting and it really has three pillars.
1. To be a trusted supplier so we get repeat work, which is obviously ideal from a consulting perspective.
2. We need to be able to bring some level of expertise.
3. We also need to be able to bring some form of value.
1a. So if you think of the key things that drive being a trusted supplier, is obviously there’s got to be stakeholder management,
1b. Commercial innovation, commercial flexibility, as not all customers want to be charged the same way and we always try and make our charge out based on outcomes, not just a flat rate, which takes the risk out for everybody. We always try and make our consulting work has a solid ROI. Therefore, we find a way with a client to charge in such a way that it ensures the work is self-funding, so they’re not taking any risk…….not everybody does that, I know, but it’s important that, that flexibility’s there.
1c. The other key thing that is important is reporting along the way and having that clear.
2.a Think of the expertise pillar, then for us, what are some of the key drivers of expertise or having a speciality of some kind? Of course, in our case, that is business improvement and optimization of business.
2b. Making sure that we are performing as a supplier and we can readily demonstrate that.
2c. The ability to coach people along the way, the client directly or people internally or externally.
3a. If we think about the value pillar, for us, one of the key ones is innovation. We need to be able to bring something new, that the organization would not be doing on their own.
3b. There needs to be a cost versus benefit. We have to be demonstrating value along the way, if not, you know, you certainly wouldn’t be getting repeat work and you’re certainly not delivering what you’re promising in the first place.
3c. The last thing then is positioning, I don’t mean positioning ourselves as suppliers, I mean positioning from the perspective of getting a client to understand why you might be doing a particular thing and the value that brings to their business. Therefore, positioning might not really be the right word I guess.
However, there is a simple example of a business model, scruffy though it may be lol. We help businesses build these sorts of models for their activities and their particular type of business to help them focus. If it were another consultant and they might have some challenges, say around value, then they are struggling to show cost benefit, or they might be struggling with coaching. So, you can think about what the key areas of our business are and focus in on those.
Hopefully, that has helped you see what I’m talking about, but again, if you want any tips on models and how to build a simple model for your business, give me a quick call and I can give you some tips that can help you straight away.
We do offer a complimentary service behind these videos. So again, just follow the link and I’m happy to help you draw out a model for your business, it really doesn’t take that long once you think it through and think of the key steps.
I hope you have enjoyed this series and I hope you’ve found it helpful. We will be doing more snippets and observations from the market to help people generally and no doubt there will be other series in the future.
Again, if you want any advice, any tips, just give us a call and book, a time to talk, and we can certainly help you out and steer in the right direction.
Okay. See you next time. Bye bye. For now.
As usual. if you have any questions about anything I’ve talked about, um, you can email us at firstname.lastname@example.org or go to our website www.bizdrivers.biz. You can contact us there and we can certainly steer you in the right direction.