A Facebook friend called Phil sent me a message asking for advice about creating an effective business model for his creative enterprise. I didn’t have much time – but I didn’t want to ignore it either – so I sent a quick answer. This is what I wrote:
Here’s the starting point of a business model:
- Identify what you excel at in relation to the competition. In other words, pinpoint what you are especially good at that most others aren’t.
- Focus on the type of customers who want that thing you do really well.
Hope this helps!
I think this summarises the essence of any successful creative enterprise, so it’s a good starting point when devising business models for creative enterprises, either at the startup stage or for more established growing businesses.
It can also be used as a ‘reality check’ to keep an established enterprise on track as things constantly change: rivals are improving their offerings, new firms are entering the market, client requirements develop and new customer segments emerge.
These two questions also act as an effective ‘acid test’ to use when evaluating a lengthy business plan. In other words, they ask whether or not the fundamental assumptions are valid before going into further detail.
See the article ‘Create Your Own Business Formula‘.
P.S. For a more detailed answer, and a process to work through, get a copy of ‘Designing Your Creative Business’
David Parrish is a keynote speaker on new business models for the creative industries. He has written about business models in his books for creative entrepreneurs and delivers training workshops on business models and strategies for creative and digital businesses.