Optimal Business Models - What is a Business Model?

1. What is a Business Model?

A Business Model is a blueprint of how a business is structured and operates. It is usually documented as an Organization Chart, Job Descriptions, Standard Operating Procedures and Work Instructions.

The purpose is to create and maintain well-defined business systems, enabling the company to produce consistent results in a system-dependent rather than people-dependent fashion.

2. How does a company operate a Business Model optimally?

By implementing a highly systematized way of doing things, there is a structure that allows employees of differing skill levels to produce consistent results.

As the business grows and faces new challenges, feedback systems enable the company to learn from both its successes and failures. Management reviews and fine-tuning ensure that past mistakes are not repeated. The Business Model continues to evolve to the company's advantage.

As a successful business grows, a system dependent company's Business Model, can be duplicated in future branches and facilities. This is an approach frequently used by franchises.

3. Is there a Template available for implementing a successful Business Model?

Most Quality Management Systems are good templates. The ISO 9000 is the most widely used in the world. Using sound business practices and time proven quality principles, this template can be utilized to create an Optimal Business Model.

Based on self-correcting and self-sustaining systems, using ISO 9000 a Business Model can yield dramatic results.

4. What are some advantages of using ISO 9000 as a Template for the Optimal Business Model?

In addition to those listed in the quick guide to ISO 9000:2000, some further advantages are:

It enables the business to be sold for profit at a later date.

A company is valuable mainly due to the systems in it. The people may leave after a while but the systems will stay.

Duplicable. Having a system in place allows new branches to be set up and operated with a minimal learning curve.

Success becomes more a science than an art giving dependable and reliable performance results, year after year.

(source: Vivid Vision)

Comments: This can be applied to any type of business that you're getting involved in. If you want to start any business venture, and yes, even a Haitian Website, then you have to...

  • Know what exactly you are trying to achieve
  • Know how you will go about it
  • create a system around it
  • Only make changes to improve that system
  • If you can, Put it on Auto-Pilot

Reply to this article

Tags: Business Model, Business

Return to Articles List

Leave a Reply

Name (required)

E-mail (required, will not be published)

Subject: Optimal Business Models - What is a Business Model? edit

» »