A business model which has a huge impact on my thinking emphasises that your likelihood of success in a specific type of business is linked to your:
- Skill, knowledge, experience or ‘feel’
- Ability to generate the right amount of money in that field.
Some of the questions asked are:
- How much does the topic or that aspect of the business energise you?
- What is the extent of your skills in this area? What is the depth of your knowledge? How much ‘tacit’ knowledge have you built up?
- Will your involvement in this enterprise be able to generate the right amount of money for you in proportion to 1 and 2 above?
These three aspects must be ‘in sync’. Let me give you two examples of what can happen where there is lack of balance.
A friend of ours was an expert in the field of intricate cake icing and specialised in wedding cakes. When she immigrated to another country, she decided to set up a business in this field. When we test her intention against the above model, she had the passion and the skills and experience. However, number 3 was lacking. The hours taken to craft the icing were out of proportion to the monetary amount she could charge for the cakes. Hence, the demand at that price was limited and she could not generate proportionate income to align with 1 and 2.
Another friend used to run an office administration business in our city. But she lost interest after many years. Her passion (1) was gone. She had the skills, the knowledge and experience (2) to continue running a very successful business and it brought in the right amount of money (3). But she did not feel successful because 1 was missing. So, she sold the business and moved to something that brought her success through 1, 2 and 3 being ‘in sync’.
I believe that being aware of the importance of these three factors (and their combined impact) can help us to make wiser decision in our business or professional lives. We can also look at factors similar to this in our private lives. Questions to ask ourselves are:
- Are we engaged in those activities which make us feel ‘whole’?
- How can we incorporate more of those sights, sounds, smells and kinaesthetic experiences that bring out the best in us?
- In what way are we building, conserving and spending our personal energy?
- What are we doing to use our existing skills to better advantage?
- How are we continuously improving our skills?
- What are we doing to ensure that our financial rewards are in proportion to our expectations?
- How fair is our monetary compensation in relation to our enthusiasm, knowledge and experience?
So, applying business models can help us to make decisions that are more likely to lead to success. Some models can also be adapted to enhance our private lives. Reflection can help us align and build a stronger future. So, how can you take the above ideas and use to build a stronger future?