Entrepreneurial Management
Part 2 | Company Model
Your company model is the way your company makes money. Period. And in this module, we break down how to determine what your company model is.
You can figure out what your business model is by making a list of all the ways you make money. If you have 17 products, if you have one product, just write them all down, and write down the price that you charge for each one, and how much money you make for each one.
For example, you may coach clients one on one, charge $2,000 per coaching package and make $1,800 per package. That could be your business model.
At The Life Coach School we also include how we get customers to buy those products. It’s our summary of how we run our company.
It’s important to think about how you want to run your company in the long term. What is your yearly goal and what is the product and process you will use to achieve that result?
If you could only pick two things that you would make money at, what would they be? We recommend you find the two most lucrative, highest value products. Many of the ideas you have are scrounging for nickels on the floor. You are going to leave a lot of money on the table and that’s okay because you want to let all the change go. Let all that change go so you can have the dollars. If you spread yourself too thin trying to make all the money in all the possible ways you are going to be exhausted. It will be very complicated and complex.
At The Life Coach School we used to have lots of different products we were offering. It was very complicated and complex—we had all these processes, and we decided to reduce it down to two. We now have Self Coaching Scholars and a Coach Certification Program. These are the two main ways our company makes money.
A business model should be repeatable and dependable. This includes your marketing process and delivery process for your product. Once it’s repeatable, then you have your freedom. Then it becomes a machine that you just turn on and receive revenue from.
Remember, every time you say yes to something, you have to be saying no to something. You will not want to narrow down to just two or three products, but it will create more for you in the long run and save you a lot of time.
So sit down, write down all your products, what they are, what they currently require, and then decide what you want them to be, and make sure they’re in line with your manifesto, your vision, and your core values.