The Ideal Business Model

[ohm]

Does anyone have what they consider the "Ideal Business Model"?

Does it include a Mission Statement?

Should each and every action pay for itself and include a profit?

Does the "Model" take into account supply & demand or a "down economy"?

 

[brian john]

Does anyone have what they consider the "Ideal Business Model"?

Does it include a Mission Statement?

When I read mission statements I laugh, mostly BS.

Should each and every action pay for itself and include a profit?

Not all items will result in a profit, baseball tickets?

Does the "Model" take into account supply & demand or a "down economy"?

I would think so but in my case I just start praying in a downturn.

 

[active1]

Here is a low overhead business model that may work well in a down econimy:

http://4.bp.blogspot.com/_hpQ2iU7yiHA/SKrtHteZ9gI/AAAAAAAABZc/9eg_Cg39RMg/s1600-h/London+Beggars.jpg

 

[jmsbrush]

When I read mission statements I laugh, mostly BS.



Not all items will result in a profit, baseball tickets?



I would think so but in my case I just start praying in a downturn.

I feel like our mission statement is honest,good and to the point

 

[brian john]

I feel like our mission statement is honest,good and to the point

You are the contractor you would and should. It may give you goals to strive for but I stand by my statement MOST are BS.

 

[nhfire77]

IMHO: Mission statements are BS. It doesn't matter what side you are on Management or Labor, its crap. I do not mean to offend anyones best intentions/mission statements. IMHO

My personal one is: " To achieve 100% customer satisfaction while becoming insanely rich, a quickly as possible. Oh and to do it right, also."

 

[electricmanscott]

Does anyone have what they consider the "Ideal Business Model"?

Ray Kroc does. Did. :smile:

 

[fondini]

lmao ...ditto

 

[khixxx]

Does anyone have what they consider the "Ideal Business Model"?

Does it include a Mission Statement?

Should each and every action pay for itself and include a profit?

Does the "Model" take into account supply & demand or a "down economy"?

Buy stock in a company. Then sell when you think a down turn is coming.

Wish I could help more.

 

[tshea]

Early to bed, early to rise, makes a man healthy, wealthy and wise!

 

[electricmanscott]

Early to bed, early to rise, makes a man healthy, wealthy and wise!

Nope. I tried that one too.

 

[Rewire]

before you can develope a business model you need to decide what it is you want from your business. Take no advice from those who are not actually in business and who have no proven business model.

I want my business to have value and to be of value it has to be something that someone else sees as being of value.

I want my business to stand alone seperate from me ,I am not the business.

I want my business to make a consistant profit

The great thing is that most proven business models can be duplicated and applied to a contracting business. When looking at these different models you will find many similarities it is not nessesary to reinvent the mouse trap.

 

[jmsbrush]

before you can develope a business model you need to decide what it is you want from your business. Take no advice from those who are not actually in business and who have no proven business model.

I want my business to have value and to be of value it has to be something that someone else sees as being of value.

I want my business to stand alone seperate from me ,I am not the business.

I want my business to make a consistant profit

The great thing is that most proven business models can be duplicated and applied to a contracting business. When looking at these different models you will find many similarities it is not nessesary to reinvent the mouse trap.

Good Advice

 

[ohm]

before you can develope a business model you need to decide what it is you want from your business. Take no advice from those who are not actually in business and who have no proven business model.

I want my business to have value and to be of value it has to be something that someone else sees as being of value.

I want my business to stand alone seperate from me ,I am not the business.

I want my business to make a consistant profit

The great thing is that most proven business models can be duplicated and applied to a contracting business. When looking at these different models you will find many similarities it is not nessesary to reinvent the mouse trap.

ditto JM. If someone just wants to make pocket money for a few years the business model can be just a thought, rolling with the punches and trying to do the right thing.

I would be careful taking too much advice from someone you're bidding against.

 

[Greg Swartz]

Wow... quite a few questions there. I'll answer them and a few thoughts on the comments are below

Does anyone have what they consider the "Ideal Business Model"?

Does it include a Mission Statement?

Should each and every action pay for itself and include a profit?

Does the "Model" take into account supply & demand or a "down economy"?

I do have a business model. It is far from perfect. However, it is constantly changing, and I hope I am getting closer to that. Also to note, the business metamorphs as society changes... so, my model last year may not be ideal for this year.

My business has a mission statement. I uploaded all that stuff to the MHE site back in Jan / Feb. I believe a mission statement helps you focus on a goal. (See Rewire's comment.)

Should each and every action pay for itself and include profit.
Well... let's think about that.
I DO think every action should pay for itself, and have a profit attached to it... unless you are a Not-For-Profit business.
Let me explain my thinking: Not every action will result in IMMEDIATE profit or have IMMEDIATE payback. Baseball tickets (as mentioned earlier) are a phenomenal way to reward employees or yourself or your family, or even a customer. These items in turn create increased morale, which turns into increased productivity, which turns into increased profits. Same with a customer... now you have a repeat customer, or a customer that refers your business... and that's repeat profit. (I track things like this.)

Supply and Demand / Down economy... No, my model does NOT take this into account. I also believe that if you market yourself correctly, you will not have a supply / demand issue, or down economy issues. In Colorado Springs, I have 550 registered electrical contractors competing against me. (And 1000 hacks too...) So, I change things to make them not my competitors (this is dangerous, because at least 3 of them will read this! )

Early to bed, early to rise, makes a man healthy, wealthy and wise!

It worked for Benjamin Franklin... it will work for you too.
The questions you need to ask yourself are:
Are you healthy? If the answer is no, then you need to get healthy, so you can run your business much better than you are.
Are you wealthy? I am very wealthy... and it has NOTHING to do with money... I have a wonderful family that loves me and stands behind me. I can, and WILL conquer the world... and they believe in me... so I can!
Are you wise? Wisdom comes from application of knowledge. You may be smart but not wise... you may be both... but if you do not apply what you have learned... you will never grow your business.

before you can develope a business model you need to decide what it is you want from your business. Take no advice from those who are not actually in business and who have no proven business model.

I want my business to have value and to be of value it has to be something that someone else sees as being of value.

I want my business to stand alone seperate from me ,I am not the business.

I want my business to make a consistant profit

The great thing is that most proven business models can be duplicated and applied to a contracting business. When looking at these different models you will find many similarities it is not nessesary to reinvent the mouse trap.

Take a minute and re-read Rewire's statements. (I always like to see his point of view.)
You NEED to know what you want out of the business. If you don't have a point to aim at (Mission statement)... you can never miss... and you'll never really achieve something great. You may get lucky and land a good contract now and then, but you'll never be anything really and truly great and lasting.

Oh, and about duplicating... EVERYTHING you do can be systematized! EVERYTHING! From answering phones to installing conduit to assembling switchgear to billing. Get that down, and your life will be significantly easier... and then you can REALLY grow the business.

Have a fantastic day!
Greg Swartz
Head wanna-be!

 

[Ohmy]

Here you go.....

Here you go.....

Does anyone have what they consider the "Ideal Business Model"?

Does it include a Mission Statement?

Should each and every action pay for itself and include a profit?

Does the "Model" take into account supply & demand or a "down economy"?

1. Yes. The ideal business model = Makes More Money Than You Consume.

2. The Mission Statement = Don't Do Anything, Unless its Going To Make You Rich.

3. Yes, every action should pay for itself and include a profit. If it does not....it violates the Ideal Model and Mission Statement.


Of course, if it doesn't make money why would you do it in the first place?

 

[ohm]

Great comments Greg & Ohmy.
Does a Great Business Model address every aspect of a business say with a SOP for whatever may come along or is it an abstract document?

I would think a mission statement could be very short and have seen some project managers put one together by the employees as a team building effort, with a prize for the best. It may be corny but it seems to work.

I agree w/ both of you: every action should produce a profit; some short term, some long term. The long term profit might be intangible and called good will.

Should we bid jobs the same in a down economy as an up one? How can we add value to a sealed bid so we come in somewhere in the middle but still get the job? Often the company I worked for got the expansion project, without competetive bidding because we had proven ourselves on a previous project.

Greg, it was interesting to hear what you said about your competitors. A companies business plan probably rates up there with "Top Secret" and that's probably why we often get "jabs" and "snide" comments from our peers, rather than something we can actually use.

 

[neutral]

Does anyone have what they consider the "Ideal Business Model"?

Does it include a Mission Statement?

Should each and every action pay for itself and include a profit?

Does the "Model" take into account supply & demand or a "down economy"?

Good looking Blonde about 5?4? tall 36 24 36 between the age 18 and 25 and type at least 5 wpm or less. No mission statement

 

[zog]

Does anyone have what they consider the "Ideal Business Model"?

Great topic! An ideal business model isnt something you should copy. Find a model from a successful and similar business to your and make it your own.

Does it include a Mission Statement?

Yes it should, always, any successful business person will tell you that. Does it need to be posted on a billboard? Not usually, but it shoud be in writing and something you look at as a reminder on bad days, and something you should change as your goals are met or change.

Should each and every action pay for itself and include a profit?

Short term, no. Long term, yes. You have to spend money to make any real money. Take some chances, dont be afraid to fail, but learn from every failure and success.

Does the "Model" take into account supply & demand or a "down economy"?

It may have to, my company has, and I wish we would have made the changes years ago, we are a better, stronger company from this econmic recession.

 

[ohm]

Great comments Zog, I believe the "Model" should be as individual as the people putting it together and be as flexible as it needs to be to address our changing times and economy.

Yes the Mission Statement may even surprise you on a bad day i.e. did I say that! It may even inspire your son as he assumes the business 40 years later.