I have always thought of starting an online Business. however, my goal is for it to be successful. As with any business in the development process, the first thing I need to do is develop a business model. The reason I need to do this first is that it explain the way in which my company makes money. After developing the model, I will have a map of what I need to do to be profitable. Developing a business model is tough Because I am in the process of developing my own model, I thought it might be beneficial to other internet entrepreneurs if we work through the process together.
One of the best generic business models I have ever come across is the B-I Triangle, developed by Robert Kiyosaki with Sharon Lechter, introduced in “Rich Dad’s Guide to Investing” and explained very clearly in “Rich Dad’s Before You Quit your Job”. I highly recommend that every entrepreneur read “Before You Quit Your Job”, even if you have already quit. The reason the B-I Triangle is such a good business model is that the authors present the model in a very elegant, yet simple graphic that is easy to comprehend and remember. The model has five jobs that are required for success. These five jobs of a business are bound in a framework of a successful business.
The 5 jobs are product, legal, systems, communications, and cash flow. The framework bounding the five jobs together are Mission, Leadership, and Team. Each one of these areas of your business needs to be fully developed to create a certified successful business.
The remainder of this article briefly defines the aspects of the B-I Triangle in general terms to set the stage for the future articles. First listed are the five jobs of this business model. which are:
Product –Whatever you are offering your customer.
Legal – Includes multiple aspects of your business, beginning with the right entity structure for your business. You also need to remember other aspects of your business require legal support as well including copyrighting, partnerships, licensing, and so on., just to name a few.
Systems – Business structure required to support your company.
Communications – Required to reach your targeted customers. Also important for partners, investors, employees, vendors, and other people involved, even superficially, with your business venture.
Cash flow – The meat of the matter. Without positive cash flow your business will hit the rock.
The framework that holds your entire business together consists of Mission, Leadership, and Team.
Mission – The true purpose of your company
Team – People who support the purpose of your company and the jobs necessary for success.
Leadership – Multiple jobs including defining the company’s mission, creating the team, keeping the company strong, growing the company, etc.
This article is the first of in a series of nine articles prepared to work through the eight aspects of business model as they connected to creating a successful internet business. I am writing these articles to enable me build my business model.