Balancing profit and lifestyle: Designing your business model (Part 1)

I see so many online business owners trying to build a business without taking the time to intentionally design their business model. This not only leads to burnout and overwhelm, but also creates a business that doesn't align with your goals, or your lifestyle. In today's episode, I'm sharing 4 essential components of a business model that balances sustainability, profit *and* lifestyle.

– The importance of intentionally designing a business model that aligns with your goals and vision.
– Why visioning is crucial for business model design and decision making.
– The 4 different types of online digital product offers and how these can be combined.
– Using your vision *and* your offers to create an offer suite that serves your ideal clients at different stages of their journey.
– Why pricing your offers correctly is so important, not just for profit, but also for avoiding burnout.
– 3 common pricing mistakes and how you can avoid them in your business.

Today, we're diving into the crucial topic of business models. If you're aiming to strike a balance between profit and the lifestyle you desire, getting your business model right is key. Let's explore why this is so important and how to start building a model that aligns with your long-term vision.

Why Your Business Model Matters

A well-designed business model ensures your business aligns with your goals, vision, and desired lifestyle. It helps prevent burnout and overwhelm by focusing on long-term success rather than just short-term gains. Many new business owners, especially in the online space, fall into the trap of thinking month-to-month. This approach can lead to constant survival mode rather than strategic growth.

The Foundation: Your Long-Term Vision

The first and most crucial part of designing your business model is defining your long-term vision. This vision becomes your guiding star for every business decision you make, from accepting clients to investing in new tools or launching products. A clear long-term vision helps prioritise actions and investments, ensuring they move you closer to your goals.

Defining Your Vision

Your vision encompasses both your personal life and business aspirations. Consider the following:

• Lifestyle Goals: What does your ideal day look like? How many hours do you work? What tasks do you focus on?
• Business Goals: What are your long-term financial targets? What impact do you want to have?

Visualise your ideal day a year or five years from now. Where are you? What time do you wake up? What tasks do you prioritise? By answering these questions, you can start aligning your business decisions with your long-term vision.

Mapping Out Your Offers

Next, consider the range of offers your business provides. While you might start with a single offer, expanding your offer suite can cater to different client needs and stages in their journey.

Common Offers for Online Businesses

1. One-on-One Coaching/Consulting: High touch, high profit, but less scalable.
2. Group Programmes: Balances personalisation and scalability, fosters community.
3. Online Courses: Highly scalable, allows for wider reach, and can be leveraged for passive income.
4. Memberships: Build community, provide stable cash flow, but require ongoing management.

You can combine elements from these different offers to create a hybrid model that suits your business and clients.

Aligning Offers with Your Vision

Your offer suite should serve your ideal client at various stages, encouraging repeat business rather than constantly chasing new clients. For example, you might start with a low-risk offer and then guide clients through higher-value programmes as they progress.

Pricing Strategies

Pricing is a critical aspect of your business model. It affects profitability, perceived value, and your freedom. Underpricing can lead to overworking and resentment, while appropriate pricing ensures quality service without burnout.

Pricing Models

1. Value-Based Pricing: Price based on the transformation and value provided.
2. Tiered Pricing: Offer different levels of access or support.
3. Premium Pricing: Position yourself as a high-end expert, requiring confidence and proven results.

Regularly review and adjust your prices to reflect your experience and the results you deliver.

Avoiding Common Pricing Mistakes

1. Underpricing Due to Lack of Confidence: Focus on the value you provide rather than comparing yourself to others.
2. Not Accounting for All Costs: Include all delivery costs, including your time and any team members’ contributions.

Failing to Increase Prices: Periodically review and increase prices as you gain more experience and deliver better results.

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