Get real about your business model.

You may think you’re stuck with the business model that came with the organization you operate, whether it’s nonprofit or for profit. However, as internal and external circumstances change, many decisions require updates, and your business model may be one of them.

Last week during the kick off of a new program, More Money 2020, I told the CEO participants the story of an organization I worked with years ago whose business model changed 180 degrees.

As recently as five years ago, this nonprofit was institutional and government grant-driven. The organization’s programs and expertise were widely available—“open source,” the current CEO called it. 

But several realities necessitated a change. 

First, their open source expertise was so widely adopted that it no longer served as a mark of differentiation. 

Second, the funding landscape changed so much for this organization that those grant sources were no longer options as predominant sources.

Miraculously, the new leader turned the organization in a new direction, leading a significant shift in culture, mindset, practices, activities, and relationships.

It felt like fresh air had blown through the hallways, even though I’m sure the process was more like turning the QE2 around in a new direction inside a small lagoon.

Here’s your work for this week. Get real. 

Is your business model working? Do you know the key drivers of your business model? Can you identify what the key activities and relationships are? How do you measure progress?

It’s easy to waste time and resources pursuing the wrong activities and relationships. 

Is it time for a shift?