Is Your Business Model Broken?Oct 29, 2020
The plans of the diligent lead surely to abundance and advantage, but everyone who acts in haste comes surely to poverty.
Proverbs 21:5 AMP
If you have flat or declining revenue, there's a strong chance you have a broken business model. Meaning the market is simply rejecting what you're selling, the way you are selling it.
The result is a bad Product/Market fit.
It's like a deadly disease, when you have it, you'll die unless you fix it. In fact, 46% of businesses die a slow death for this reason.
And whether you are leading a new startup, or an established business, if you have low, slow, or no revenue, your model is likely broken.
So how do you fix a broken business model?
You'll need a rigorous vetting process. The tool I use for the process is Lean Canvas. It's a 1-page business plan template that helps you deconstruct your business idea into key assumptions. It facilitates a white-board vetting process forcing you to work through 9 major questions about your model. The process forces you to dig deep.
For Example: List your customers' top 3 problems?
Seems easy right. But with each answer, vetting means you challenge it with a WHY? And when you answer that, you ask why again. You go at least 5 whys deep each time. This is vetting. This is rigorous.
At entrepreneur accelerator at CanaGlobal if I can poke holes in your model in seconds, you didn't vet your model. Happens more often than naught.
While vetting your business model, though rigorous, might seem simple enough. Most entrepreneurs lack the proper vision and diligence to develop their model and then do what's required to execute it.
Let's define vision and diligence.
True vision is a precise, clearly defined goal with a detailed plan and timetable for achieving that goal.
True diligence is a learnable skill that combines: creative persistence, a smart-working effort rightly planned and rightly performed in a timely, efficient, and effective manner to attain a result that is pure and of the highest quality of excellence.
Look, we all have a way of thinking, good or bad. Our thinking leads to a way of doing, good or bad. And our doing leads to our results, good or bad.
If you want to change your results, you'll have to be willing to change your thinking. The root of our lack of results is always our thinking. And whatever the root is, the fruit is.
If you are struggling with a lack of true vision and diligence, you'll have to be open to changing your thinking and doing, to change your results.
You see, the entrepreneur with a broken business model most often lacks true vision and diligence. The fix is to grow your way of thinking. Remember, diligence is a learnable skill.
And it's a Biblical truth.
The plans of the diligent lead surely to abundance and advantage, but everyone who acts in haste comes surely to poverty. (Proverbs 21:5 AMP)
Why do entrepreneurs resist changing their way of thinking? The root is pride and ego.
Pride goes before destruction, And a haughty spirit before a fall. (Proverbs 16:18 AMP)
So, if you are struggling with your revenue, and know you need to make some changes to your business model, and the thinking behind the vision and diligence, along with the execution of your model, know this.
It's God who gives us the ability to succeed.
But remember the Lord your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your ancestors, as it is today. (Deuteronomy 8:18)
When I'm struggling through building out a business model, I'll spend an enormous amount of time with God vetting my canvas. Why? Because He has the perfect answers to every question.
To get unstuck, seek out true vision and diligence from God. Take your time working through your business model, the fruit will follow. I promise!