The Importance of a Good Business Model
Selecting the correct business model for your business is very hard and most likely you won’t select the correct one at first. Generally, you select one and slowly make changes to it as you grow the business. On the other hand, you can still get very close at the beginning and that is the factor that tends to make the largest impact in start-ups. Forget about the name, the logo, or the banner for your Twitter page, it’s all useless and the most important part is the service you provide.
Selecting the right business model can be the difference between a 10k-a-month business and a 40k or even 100k-a-month business other factors are obviously important such as pricing or marketing but you get the point.
Types of Business Models
There are many types of business models and you could even try to create your own but it’s best to take other studios and their models into account and use them as inspiration to build your pricing, product, and service. Alex Hormozi believes that the best way to earn money is to make a high ticket offer, if you agree then you will likely charge 5-10k per client, sometimes even more. Other businesses believe in selling a one-time product in this case you may sell courses, software, or even add-ons.
Some business models revolve around the price of a product, others revolve around the actual product, and others focus on pricing, and what type of pricing. You may decide to charge clients monthly (Subscription based business model) or you may decide to charge clients based on the number of renders they may need (Very common in freelance).
In this week's video, I explain in-depth 3 business models that are a good fit for a business studio. I mention the Subscription based model, the Partnership model, and the Project-based model. These models are the most common I have seen in Arch Viz, they tend to focus on the payment style and the relationship between you and your client.
The Business Model at Future Frameworks
At the time of designing and planning Future Frameworks, I had to plan and research a lot, I believe I have probably designed 5, or 8 business models before I have decided on the final one. So don’t feel attached to the actual business model you have designed, it is very similar to writing a book sometimes you have to start over again and use what you’ve learnt to make something even better next time.
With my previous business, I simply had a subscription model with a lot of outsourcing, the process I generally focused on was client acquisition and client management after that I didn’t really do much else. I just jumped from client to client and this had many different problems.
This time around I am trying something similar to DesignJoy’s business model, I had been designing business models for weeks and I had managed to make a model that was subscription based because I prefer to have an idea of the income I will have next month which you don’t get with the Project-Based model but the difference was that I had an idea similar to a Partnership model with a mix of Content Marketing (Organic Growth).
Now the problem with this model was that there were many different things to manage and it was complicated but what DesignJoy made was to transfer it all to a single landing page and explicitly say that there would be no calls. Implementing this would make my model actually doable, I was able to “Partner” with different Architectural Firms, and people would be able to see the website on social media through all the content I am posting weekly (At the moment the Newsletter, YouTube, and Instagram) and I would have the benefits of the recurring income. Without having to jump into pointless meetings where I could spend time making the actual business better and getting more clients.
Content Recommendation:
This video is an in-depth interview with the founder of DesignJoy where it explains their business model in detail and its benefits and disadvantages. I found it very helpful and there are many other interviews where Entrepreneurs talk about their business models. Leave a comment if you have any other business models and if you know of any articles or videos that might be interesting at the time of researching other business models.