How To Define Your Business Model And Set The Objectives That Will Bring It To Life
Follow us as we explore the first of Ironstone’s Fundamental 4™ – Strategic Planning: The main objective in this fundamental is to create an uncomplicated plan that clearly defines the direction of the practice. Primary focus areas include business and succession planning, creating organizational structure, and collaboration amongst the management team. It is crucial for management to develop realistic goals and objectives creating the framework for team member focus. Even more crucial is management’s ability to communicate these goals so that the common focus permeates throughout the team. Plans and models that are stored on a computer are seldom implemented and likely to be forgotten.
What type of business model are you following? Solo, Silo, or Ensemble?
Strong ownership mentality helps drive success and creates focus to leverage services offered.
- A Solo Firm has a single professional advisor position, typically the firm owner.
- A Silo Firm is a producer group in which multiple advisors collectively share overhead and expenses but remain independent and have separate client bases
- An Ensemble Firm is a multiple advisor firm that operates as one firm, with advisors generally paid on a defined compensation model.
Are you following the right business model for your firm and what is the difference between a business model and a business plan?
- A Business Model ascertains how your business makes money. It will identify the services that your clients find valuable. The business model will focus on the largest income generator for your firm.
- A Business Plan embodies your set of business goals and how they can be attained.
Overall, the business model explains the flow of money within the company and the business plan outlines the structure needed to obtain that flow of money. A business plan supports the business model and explains the steps to achieve the goals of that model. If you change the business model, you will also need to change the business plan.
There is not a one-size-fits-all solution for every firm. Ironstone works with highly successful firms operating with different business models. You can make your business model decision after considering your goals and objectives.
Contact us for help in preparing your Business Model. Use this guide to help you get started on setting the goals and objectives that will serve as the foundation of your Business Model.
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Follow us as we explore each of Ironstone’s Fundamental 4™!
- Strategic Planning
- Business Development
- Operational Effectiveness
- The Human Element
You won’t want to miss our next post in the series: Business Development – Niche Marketing