Over the years a growing number of people in my network either had the ambition to or were making the conscious decision of becoming entrepreneurs. However, I also realized that many of them often decided to do so without the necessary research and analysis required to start a venture. Albeit I have seen and heard of amazing ideas; ideas remain very separate from practical income generating structures.
I recently read an article by Tim Rettig in which he defined a business as “an automated system which generates cash flow for its owner”. Tim referred to entrepreneurs as “the ones who envision this working system”. I found that definition very accurate in how it sticks to the facts of matter and strays away from all the glamour which often misrepresents entrepreneurship.
It is impossible to generate income from a business structure whose business model is rooted in “a great idea”. Businesses that generate income usually have tested their value proposition and made sure there was a market fit for it. One must have a total understanding of the business model around the said “great idea”.
Some people start their businesses without any knowledge of what a business model is. Luckily, it is not too complicated to take a step back and have a look at your business and reevaluate it. You can easily learn how to map your business model and make it realistic. Sometimes all that needs to be done is a small change in your daily operations, other times a total restructuring of the business will be necessary. But the end goal is for you to have a sustainable business which generates profit.
This video made by Strategyzer goes over the main components of the business model canvas and their function within your business.
If you are planning on launching your start-up and have no idea of what a business model is, I would recommend checking out the link above. Additionally, I have attached a free downloadable Business Model Canvas template for you to use.
On the other hand, if you have always dreamed of starting out your own business but felt like you lacked the resources or the knowledge, this is also for you. You might be closer to accomplishing your dream than you know it. Although mapping out your own business model canvas can be a bit of a brain workout, it allows for an overview of how you will be able to make ends meet once you decide to launch.
If you are interested in in taking your business model a step further and bring it to the next level using innovation I would recommend this webinar session from Kenan Muhovic at Board of Innovation. This will require more of your time but in just about 20 min you will learn the importance of business innovation, how a business model does not equate a revenue model, and dive deeper into the process behind creating business models.
Entrepreneurship may seem glamorous if you base your opinion of it from the news. I also know that seeing people label themselves as CEOs on social media “looks” impressive or cool. However, what goes on behind the scene is too often undocumented. Being an entrepreneur involves hours days months if not years of preparation before even launching, having to wear several different hats after launching, and making a lot of errors and learning from them.
If you enjoyed this blog post make sure to like and share this article. Let me know if mapping out your business ideas on a business model canvas was useful. What are some of your struggles when it comes to entrepreneurship?
