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Actual for You - What Exactly Is A Business Model
Resistance is a nuisance. You want to carry on, get up to speed and all kind of people are pulling your sleeves with a lot of questions, criticism and other hindrances that slow you down.Good for them! And ... good for you!What would you plan be if nobody resisted? Is this not what dating is all about? You say; “no really, I can’t make it tomorrow, I’m sorry!” and in the meantime you hope that your date is not off all together. Let him (or her) wait for a bit.In business it’s quite more complicated, but also there you have a plan and people, departments, that are not willing. At first.Not in the last place this is because there is not really a plan. Sometimes the plan looks more like a dark tunnel, where I wouldn't step in either. The resistance will help you (and hoefully an
My point is this. Your model parlor defines how all the other parlors must work to provide consistent quality, service, value, etc.
All successful franchises use the "model" concept, whether they call it that or not. That's why your order of a Big Mac, chocolate shake, and fries is exactly the same in Toronto, Toledo, Topeka, or Timbuktu.
NOTE: The same idea applies to a single facility business.
If all your business processes are documented, a single business (big or small) can provide consistent quality, service, value, etc.
If all your business processes are documented, your business can provide the customer extraordinary results using ordinary pe
Ah, the ebb and flow of work. Sometimes it seems like there is much more ebbing than flowing with all of the workflow, the deadlines, the projects and presentations, but overall the tide seems to constantly be flowing in and out, in and out, in and . . . sorry. Recently a friend returned from a cruise in the Bahamas and commented that he still felt that he was ebbing and flowing as if he were still on water. Many times I have felt the same way after a long day of incoming projects and outgoing reports. But I am not alone. Recent business studies have shown an increasing need for some kind of workflow management software to enable more efficient workflow management.Overall, most of the daily business activities include collaboration with committees, departments, that board, or this client, in order
1. A reader asks...
2. Evolution of a definition...
3. My definition of a business model.
4. Are you stuck with "tribal knowledge?"
5. Help with a franchise manual.
==================================================
1. A reader asks...
Dear Sirs,
What exactly is a business model? I could not find a definition in common literature. I am a student of business economy in Berlin, Germany. I would be very happy if you could give me an answer. Thanks and have a nice day.
Kind regards,
A. R., Berlin, Germany
2. Evolution of a Definition...
This question gives me a chance to review our basic premises again.
I have heard people use the term "business model" many ways. Often, people refer to a specific business process as a business model.
For example, I've heard people call their sal'es process a business model. Similarly, you could program a simulation model for your manufacturing process and call it a business model.
So, let's examine what the American Heritage Dictionary of the English Language says (excerpts).
Business:
1. a. The occupation, work, or trade in which a person is engaged [...] b. A specific occupation or pursuit [...]
2. Commercial, industrial, or professional dealings [...]
3. A commercial enterprise or establishment [...]
4. [...]
Model:
1. A small object, usually built to scale, that represents in detail another, often lar'ger object. [Bad news: A "Barbie Doll" model is NOT built to scale!]
2. A preliminary work or construction that serves as a plan from which a final product is to be made[...]
3. A schematic description of a system, theory, or phenomenon [...]
4. A style or design of an item [...]
5. [...]
Woops! If you combine these two words, you still don't have a specific definition. So, I will use my own definition.
3. My definition of a business model.
Generally, I define a business model as:
--A set of plans for building your business,
--A structural design for your business,
--A "model" business to imitate or emulate,
--Documented standards for your business.
So, let's say you were going to build a business.
You've decided you want to build the "McDonalds" of shoeshine parlors - with parlors all over the planet!
First, you'd need to design and build your model business - your franchise prototype.
Your model would define the pattern for all your shoeshine parlors to follow. It would specify the services, the color scheme, the logo, the way your business treats customers, everything - what to say, what to do, and how to do it.
You would write all this stuff down in Operations Manuals so you could duplicate the business over and over.
You could then sell your franchise - your turn-key shoeshine parlor business - to others who want to own a business but don't want to build it from the ground up.
My point is this. Your model parlor defines how all the other parlors must work to provide consistent quality, service, value, etc.
All successful franchises use the "model" concept, whether they call it that or not. That's why your order of a Big Mac, chocolate shake, and fries is exactly the same in Toronto, Toledo, Topeka, or Timbuktu.
NOTE: The same idea applies to a single facility business.
If all your business processes are documented, a single business (big or small) can provide consistent quality, service, value, etc.
If all your business processes are documented, your business can provide the customer extraordinary results using ordinary peo
In any job, as time goes on, it can feel like you are being pulled from every direction. You are doing the best you can and seems like it is still not enough. It’s easy to feel like you are falling behind and will never catch up. And if you do catch up, there will be no keeping up, let alone make time available to truly excel.It is easy to get overwhelmed with things big and small, lose perspective on what’s important and let the proverbial straw break your back. After the 20th email, the tenth phone call, the 4th “IM” and the sixth decision you are asked to make today, it can feel like meltdown-time. At that point, you are n
For example, I've heard people call their sal'es process a business model. Similarly, you could program a simulation model for your manufacturing process and call it a business model.
So, let's examine what the American Heritage Dictionary of the English Language says (excerpts).
Business:
1. a. The occupation, work, or trade in which a person is engaged [...] b. A specific occupation or pursuit [...]
2. Commercial, industrial, or professional dealings [...]
3. A commercial enterprise or establishment [...]
4. [...]
Model:
1. A small object, usually built to scale, that represents in detail another, often lar'ger object. [Bad news: A "Barbie Doll" model is NOT built to scale!]
2. A preliminary work or construction that serves as a plan from which a final product is to be made[...]
3. A schematic description of a system, theory, or phenomenon [...]
4. A style or design of an item [...]
5. [...]
Woops! If you combine these two words, you still don't have a specific definition. So, I will use my own definition.
3. My definition of a business model.
Generally, I define a business model as:
--A set of plans for building your business,
--A structural design for your business,
--A "model" business to imitate or emulate,
--Documented standards for your business.
So, let's say you were going to build a business.
You've decided you want to build the "McDonalds" of shoeshine parlors - with parlors all over the planet!
First, you'd need to design and build your model business - your franchise prototype.
Your model would define the pattern for all your shoeshine parlors to follow. It would specify the services, the color scheme, the logo, the way your business treats customers, everything - what to say, what to do, and how to do it.
You would write all this stuff down in Operations Manuals so you could duplicate the business over and over.
You could then sell your franchise - your turn-key shoeshine parlor business - to others who want to own a business but don't want to build it from the ground up.
My point is this. Your model parlor defines how all the other parlors must work to provide consistent quality, service, value, etc.
All successful franchises use the "model" concept, whether they call it that or not. That's why your order of a Big Mac, chocolate shake, and fries is exactly the same in Toronto, Toledo, Topeka, or Timbuktu.
NOTE: The same idea applies to a single facility business.
If all your business processes are documented, a single business (big or small) can provide consistent quality, service, value, etc.
If all your business processes are documented, your business can provide the customer extraordinary results using ordinary pe
Young adults these days are not just worried about hiring for a degree-related job post graduation; they are increasingly concerned with field-related summer and semester internships. Interestingly enough, many of these young adults are students currently enrolled at universities and colleges around the nation and are eager to apply their newly-acquired skill set to the real world.For businesses, recruiting and hiring summer interns can result with a fairly inexpensive, educated, part-time labor force. And for young adults, taking a summer internship will yield substantial business knowledge, the application of school work, and importantly: resume development. It's a win-win situation.So what types of ways are successful businesses recruiting and hiring these potential employees?
2. A preliminary work or construction that serves as a plan from which a final product is to be made[...]
3. A schematic description of a system, theory, or phenomenon [...]
4. A style or design of an item [...]
5. [...]
Woops! If you combine these two words, you still don't have a specific definition. So, I will use my own definition.
3. My definition of a business model.
Generally, I define a business model as:
--A set of plans for building your business,
--A structural design for your business,
--A "model" business to imitate or emulate,
--Documented standards for your business.
So, let's say you were going to build a business.
You've decided you want to build the "McDonalds" of shoeshine parlors - with parlors all over the planet!
First, you'd need to design and build your model business - your franchise prototype.
Your model would define the pattern for all your shoeshine parlors to follow. It would specify the services, the color scheme, the logo, the way your business treats customers, everything - what to say, what to do, and how to do it.
You would write all this stuff down in Operations Manuals so you could duplicate the business over and over.
You could then sell your franchise - your turn-key shoeshine parlor business - to others who want to own a business but don't want to build it from the ground up.
My point is this. Your model parlor defines how all the other parlors must work to provide consistent quality, service, value, etc.
All successful franchises use the "model" concept, whether they call it that or not. That's why your order of a Big Mac, chocolate shake, and fries is exactly the same in Toronto, Toledo, Topeka, or Timbuktu.
NOTE: The same idea applies to a single facility business.
If all your business processes are documented, a single business (big or small) can provide consistent quality, service, value, etc.
If all your business processes are documented, your business can provide the customer extraordinary results using ordinary pe
Your job no longer comes with a guarantee.Yes, that is right, you might have been taught that if you work hard, study for a professional occupation, and score high grades, your future is set. Nothing can harm you. You get a job with your beautiful education and a good salary, and after 40 – 50 years of working, you retire happy and do anything you want.Let us look at the facts: Millions of people are laid off work yearly. Some industries, like the record industry, were completely obsolete overnight. Thousands of skilled senior executives and middle managers are losing their jobs. Some students even find themselves unemployed when they finish their courses.Income and retirement isn’t looking too good either. Nowadays both husband and wife have to work to maintain a descent lifestyle. S
So, let's say you were going to build a business.
You've decided you want to build the "McDonalds" of shoeshine parlors - with parlors all over the planet!
First, you'd need to design and build your model business - your franchise prototype.
Your model would define the pattern for all your shoeshine parlors to follow. It would specify the services, the color scheme, the logo, the way your business treats customers, everything - what to say, what to do, and how to do it.
You would write all this stuff down in Operations Manuals so you could duplicate the business over and over.
You could then sell your franchise - your turn-key shoeshine parlor business - to others who want to own a business but don't want to build it from the ground up.
My point is this. Your model parlor defines how all the other parlors must work to provide consistent quality, service, value, etc.
All successful franchises use the "model" concept, whether they call it that or not. That's why your order of a Big Mac, chocolate shake, and fries is exactly the same in Toronto, Toledo, Topeka, or Timbuktu.
NOTE: The same idea applies to a single facility business.
If all your business processes are documented, a single business (big or small) can provide consistent quality, service, value, etc.
If all your business processes are documented, your business can provide the customer extraordinary results using ordinary pe
Too many organisations search for a "silver bullet" to fix their human resource problems. They search for a singular, narrow approach to improve performance when a broad holistic approach is required. The result of focusing on a narrow approach to improve performance is unintended consequences delivering reduced performance instead.For the human resources of an organisation to perform well, the organisation needs to have four synchronised building blocks. The building blocks are goal setting and strategy development, performance management, process management and the organisation culture.Goal setting and strategy development are important in providing individuals and teams with their reason for turning up to work each day. Strategic planning not only delivers to teams and individuals their k
My point is this. Your model parlor defines how all the other parlors must work to provide consistent quality, service, value, etc.
All successful franchises use the "model" concept, whether they call it that or not. That's why your order of a Big Mac, chocolate shake, and fries is exactly the same in Toronto, Toledo, Topeka, or Timbuktu.
NOTE: The same idea applies to a single facility business.
If all your business processes are documented, a single business (big or small) can provide consistent quality, service, value, etc.
If all your business processes are documented, your business can provide the customer extraordinary results using ordinary people.
You don't need to hire prima donnas!
It doesn't matter if your business is a small sandwich shop, or a giant computer chip maker like Intel.
My company, Senior Management Services, has more than 13,000 pages in its Operations Manuals that define all the business processes.
These Operations Manuals are "living documents" that we update as times and markets change.
If I hire a new accountant, that person receives applicable sections of the Operations Manual that show the business processes necessary to do the accounting successfully.
Since the work is documented, I don't need to hire an accounting "expert."
4. Are you stuck with "tribal knowledge?"
If you have not documented your business model and business processes, your business operates on "tribal knowledge," which means your employees transmit business processes (technology) by word-of-mouth, from person to person.
Tribal knowledge means that as an employee you must know the right guy - and he must be willing to tell you how to do the job. (Good Luck!)
Why?
Some people keep the technology of their position secret, calling it "job security." Ultimately, this method will keep your company stuck.
Your company will be built around personalities, instead of a working business model.
You should not give someone a promotion or raise until they document their job. If they can't be replaced, they're not promotable. And you should document this policy in your Operations Manuals.
Long answer to a short question...
5. Help with a franchise manual.
Like "business model," there's no specific definition for a "franchise manual." I have created a 7-page outline that emphasizes organizational strategy for division of labor.
This same organizational strategy could be used for a single-facility business.
I use a "franchise" model because franchises have a 90+% SUCCESS rate, while typical startups have a 90+% FAILURE rate.
My outline is simply that - an outline. However, today I added an exercise for serious students of business development.
You can download a copy of this franchise manual outline at => http://www.SeniorManagementServices.com/1Bronze/franchise-manual-outline.PDF
Please email your comments to =>http://www.SeniorManagementServices.com
(c) 2006 Mike Hayden, All rights reserved. You may use material from the Profitable Venture Tactics eZine in whole or in part, as long as you include complete attribution, including live website links and email link.
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