What is a Business Model? with Bob Norton
According to Wikipedia, a Business Model is the description of "how a [business] creates, delivers, and captures value." Many of us easily confuse it with the notion of a Business Plan, which is a "formal statement of a set of business goals (WHAT), the reasons they are believable and attainable (WHY), and the plan of reaching these goals (HOW)." (definition adapted from Wikipedia).
But what exactly is a Business Model? What kind of a description we need to create?
According to Bob Norton, CEO of C-Level Enterprises and chief trainer for AirTight Management, a useful Business Model is the combination of no less than nine components. These nine components are not independent: they are highly interdependent, meaning that even a small change in one has significant effects on some of the other.
Here is how he describes them during a recent tele-webinar on Optimizing Your Business Model.
The 10:44 audio sampler below was extracted from the full 72-minute program you can gain access entirely for free by registering at:
Let's listen together to Bob as he describes the 9 components, and also answers two questions from the tele-webinar participants. You can also follow the structure of a Business Model on the mindmap:
[Click on the image for an enlarged view.]
In the mindmap above I marked all the questions with an empty check box, turning it into a check list you should go through, thoroughly, and make sure you have satisfying answers to each and every question on the list. Here is the link to the PDF version of the mindmap you can print and check through.
During the tele-webinar, Bob explains why having a highly optimized and differentiated Business Model is key to any business that wants to experience significant growth. He also explains in more detail what makes a good Business Model great, and how to go about to construct one.
Here is what two of the participants in the live event had to say about it:
- Marceline Anderson, Toronto, Ontario, Canada
- Robert McDonald, San Diego, California, USA
Once you listened to the 72-minute program in a focused way, please share with us your thoughts, impressions, comments and even questions in the Comment Box below. Thank you.