Is your business model alien to you?

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If you’ve ever driven through Roswell, New Mexico, you know that in the middle of vast open desert and agricultural lands runs a main street, the business spine of the area, where you’ll find all the usual chains: Dunkin’ Donuts and Starbucks, Sonic and McDonald’s, Walgreens and Albertson’s, among many others.

 

Roswell, New MexicoHere’s what you’ll also find: aliens.

 

During a storm in 1947, something happened on a ranch about 75 miles from Roswell. Perhaps it was a weather balloon; others believe it was a flying saucer.

 

The point is that Roswell has become synonymous with aliens, and adding to its economy, UFO tourism thrives.

 

Everywhere you turn driving north or south on Main Street is a welcoming green alien. You can explore the alien mysteries at the UFO museum. And be sure to pick up some cool (or cheesy) alien swag at the gift shop.

 

So why am I telling you about aliens?

 

Roswell has modernized its economy through tourism, expanding beyond its agricultural and manufacturing base, and they are rolling with this alien thing.  From what I can tell, everyone, including tourists, is having fun with it.

 

To appeal to tourists and leverage its UFO history, Roswell had to change its business model and update the key activities and relationships it needed to expand revenue and compete. Telling a compelling UFO story, obviously, is chief among them.

 

Your business model reveals an entire system, and like any system, it has levers that propel the engine.

 

Here are five ways to think about your business model.

 

1. Certain forms of revenue will be a fit, but other sources will not be. I’ve identified over 91 sources of earned revenue for nonprofit organizations, but that does not mean some, maybe even most, will be a fit for your organization. Focus on the right sources for your business model-as-a-system.
2. Be very clear about your key activities and relationships. These are the levers that turn your business engine. In Roswell, aliens, advertising, and attractions are just three activities, while relationships with tourists, business owners, and government leaders are crucial.
3. Don’t get distracted by all sorts of tasks that are no relevant to your business model. Roswell doesn’t need to build a spa or an art museum. But an alien-themed festival? Yup, that would be perfect. 
4. Think in systems. When you’re clear on how your business model works as a system, you can connect it to other areas of your business.  For example, when I worked with one client recently on defining the business model on a new earned revenue source, a service, we connected the benefactors of this new service as potential volunteers, young friends, and ultimately donors of the organization.
5. Go deeper and wider on the focus areas. For Roswell, it would be more UFOs, science, and family fun.

Getting clear about your business model allows you to become super efficient with your time, energy, and resources and to focus on the right revenue resources without getting distracted by other shiny revenue promises.

 

Did you find this article valuable? Save the date—December 5, 2019—and join my colleague Karen Eber Davis and me for Breaking Through the Million Dollar Glass Ceiling, an online, interactive webinar. We’ll show you how to crash through the impediments that are stopping you from achieving your desired revenue goals.
 
Not surprisingly, your business model is an important key.