I alluded that this blog post was coming in my post about Katch shutting down, let’s discuss the elephant in the room, shall we??
Somebody (it may have been me) said that if your business isn’t making money you don’t have a business, you have a hobby that is draining your pockets. You could have a bajillion likes on Facebook, be a Twitter superstar and have everybody and their sister using your new app, but if you don’t have a plan for how you’re going to make money you’re doing business backwards….you may as well be spending your time playing tiddlywinks.
I’m not saying that your business needs to turn a profit from day one, that never happens…unless you can create and sell something that costs you nothing to create.
(BTW, this mini-course shows you how you CAN do that..)
What I am saying is that you should know, even BEFORE you get your business license, how you plan to generate revenue. This is known as your business model, and it doesn’t have to look like your neighbor’s. You could plan to buy a product for $2 and sell it for $45, you may have a plan to build your audience first, then offer those people something that you’re selling. What I don’t want you to do is focus on the vanity metrics, like fans and followers, with no clue as to how you’ll make money from that audience.
If your only plan is to secure investor funding, what will you do if the funding doesn’t come?
You’ll be forced to make a difficult decision, much like the one that Katch made.
Keep in mind that this is a plan, and things often happen that cause plans to change. One of my favorite Mike Tyson quotes is “Everybody has a plan until they get punched in the mouth.” So what does the fighter do once they’ve been punched in the mouth? Make the necessary adjustments and keep fighting!
Now, I don’t want you to leave emptyhanded..click here to download a free report that I’ve created, “8 Winning Business Model Ideas” to help you figure out how to monetize your passion!
Because friends don’t let friends have a business without a money-making plan…click here to opt in and get the report.
To Your Greatness,