Because I run a group coaching program where I help clients find their ideal business model, I’ve noticed that often times people miss some key points. Let’s be frank, not every model is created equal.
A lot of people want to jump into a particular business model because they get excited about a service or product. Or, maybe someone told them there is money in it. While excitement and market viability are important, there’s more to it than that.
Here are some of the questions I urge my coaching clients to ask themselves when creating a business model for themselves. It’s been in asking these questions myself that I’ve been able to create a business that works for me.
What kind of lifestyle do you want to have?
Listen, there’s no point in making a boatload of cash if you are unhappy. We all know this.
That being said, it does cost money to live. That’s why one of the things I encourage my clients to ask themselves is how they want to live.
- Do they want an oceanfront apartment? (That’s me.)
- Where do they want to live? Do they want to live in the country or the city?
- Do they want to be able to travel all the time?
- Are they planning on having children?
The answers to questions such as these can help you determine what kind of a model you want to build. For example, I want to live in an expensive city. Therefore, I need to build a business model that fits with that lifestyle.
How do you want to spend your time?
Another important question people ask themselves when deciding on a business model is how they want to spend their time. Alternately, they could also ask themselves how much time they want to spend actually working.
That’s what my friend and colleague Michelle Schroeder-Gardner asked herself when she decided she wanted to focus on an affiliate marketing business.
She didn’t want to trade hours for dollars, so that meant she would need to make money passively. While she could have gone into real estate or just start dumping money into the stock market, she decided a blog that makes affiliate sales was the best choice for her.
By having that sort of focus, she was able to build a website that will generate $1.5 million in revenue this year.
What are you willing to say no to?
I left the hardest question for last. In order to choose the business model that will work best for you, you need to be clear on what you are willing to give up. The problem is, us natural born entrepreneurs want to do everything.
In all honesty, by answering the first two questions you should already know what to say no to. Michelle knew she wanted to make passive income and travel full-time. She also knew affiliate marketing fit in with that lifestyle. That means she said no to anything that wasn’t about helping her blog produce affiliate income for some time.
I recently interviewed her and it amazed me how she still says no to a lot of things so she can focus on the business model that fits best with her life. Even with all the success she has, she is still laser focused.
By answering these questions, you’ll be able to choose and create a business model that fits with the life you want to live. By starting with the end in mind, you can reverse engineer the steps to reaching your goal.