As you create a Proven Profitable Business Model, you look at your ideal customers, value propositions and delivery systems to determine what resources and assets are required to create raving fans. A manufacturing business that makes widgets is going to require more in the way of physical resources, while a design or development company is going to rely more on human resources. Your company will also have intellectual resources including your brand, proprietary knowledge, patents and copyrights, partnerships and customer databases. It is possible your business model will rely on financial resources such as lines of credit, stock options, or cash on hand.
The challenge in creating a Proven Profitable Business Model is to carefully acquire, manage and maintain these resources and assets. Knowing whether it is good timing to purchase a piece of software or a new machine for your business will be clear when you have determined how quickly you will recover the cost in a return on investment and believe that you can afford to wait for that return. Managing and maintaining your assets and resources means keeping good records on what you have in all four categories (physical, intellectual, human and financial) and consistently evaluating when an asset or resource needs replaced and/or upgraded. Yes, this includes your human assets. When you look at your workforce as a business asset rather than as family or friends, it is much easier to be objective about the value they add to your company. Healthy business boundaries require that you are able to do what will serve your company and customers best while creating a company culture where people love to work. When you hang on to ineffective employees because of friendship, malfunctioning equipment because your grandfather used it, or lose intellectual property because of lax security, you are not going to have the cash flow you want. Create systems and checklists for managing your assets and you will lay another brick on the fastest path to profitability.
Need help in identifying, acquiring and maintaining your business resources and assets? Contact me for a complimentary strategy session and free template at [email protected].