It’s understandably difficult developing a business model that works when you’re so muddled into factoring everything from telecommunications costs, travel, and other minor expenses. In other words, we want to be “accurate” and “complete” with our business model — when really all we need to be is drilled down to the simplicities.
Base Projections — Look at the BASIC Numbers and Work From There
I’ve developed the tried-and-true business model that can be used in a variety of industries and verticals, and really all you need to do is know how to graph something on paper! That’s it. You also need to know these specifics and only estimates:
- Your Sales Goals
- Average Sale Price
- Sales Cost Per Unit
- Marketing Expenses
- Labor and Administrative Costs
- Profit Over Varied Time Frames
That’s it. It’s not rocket science. Nail down those numbers, graph it all out, and you can see exactly how your business will do each year, estimated. All without getting confused. The construct is customizable and dynamic given that the numbers aren’t final forecasts. You can use the model to test certain methodologies. Tweak numbers. And it’s specifically designed for small businesses with limited capital and need just enough profit numbers to see some growth.
The beauty of this model is that you can even customize the focus of it — you want to model several products (not just one)? Add them all in there. What about distribution channels? Logistics is easy as well. Just get the numbers you need, and plug them in. Even a focus on marketing can fit in the model as well as all sorts of static cost structures and direct selling metrics.
The sky’s the limit with this model, and here’s the best part….
This Is a Business Model That Can Be Developed in Just Two Business Days
If you know math (or have a calculator), you’re good. If you can draw lines, even better. The model breaks down the cost but also compiles everything into one neat numerical for you to digest and see the real actionable data that matters to you. That’s what you care about the most, right?
This one business model, actually, is a real example I’ve done for one client:
Annual Earnings for Service Professionals
Earnings chart for a 38 hour week/48 weeks a year. You can change percentage of dollars per hour and total annual hours as you see fit.
|% Earning Fees vs. Selling and Administration|
|Hours per year||1,824*|
|Dollars per hour||40%||50%||80%||100%|
*The average hours per year: 40 hours for 48 weeks.
Example: at 1,459 hours (80%) at $150 per hour, you will earn about $218,880.
Truly basic. Typically tailored for entrepreneurs billing by the hour or project. The client was actually a therapist, so just focusing on the numbers — hours worked vs. hourly rate, and the number of hours total. How the numbers look between each column and row can say a lot about even the smallest adjustments, and the results are staggering.
In Other Words, a Truly Effective Business Model Can Forecast for You on What to Expect in Revenue
That makes your goals more than just ‘goals’. They’ve now become benchmarks. Milestones. You’ve not just idealized your future — you’ve quantified it. And all it takes is simplification. Break it down. Then combine all of it together. And just look at the numbers.
Do you want to tweak the hourly rate? Try it. Cut some of your expenses? It’s worth a shot.
This is what I do for businesses. And I’ve done it for years, with a ton of experience under my belt on how to fast-track success for those small businesses looking toward the next level. Now you have it! You can, of course, contact me RIGHT NOW and learn even more.
Dr. Bert Shlensky, President of The Startup Connection, directs all small business clients toward maximum sales and profit thanks to his 40 years of high-quality experience. He does this through technological, social, and online integration, supercharging your business success into the next level, so don’t hesitate to sign up for a free consultation RIGHT NOW.