Business model myth
Business model myths are thriving and still very much active, why is this a problem? Let me explain. When I talk to leaders about their company on how they do business most conversations usually end with the same speech: “Jens, you must understand that our business is different and unique from most typical companies; we do stuff in our way” or “our industry is special”…. If this is your company’s normal behavior, then read on.
The above statement is never true; The Business model myths only lead to a fixed mindset that creates a highly toxic “reinventing the wheel as the only option” mentality. If you have another view I like to know, drop a comment below.
Only 10% unique
I acknowledge that leaders usually have the closest view of their company to see all the intricacies and quirks, and these slight variations truly make companies unique. But most of what your companies do is the same as a lot of other companies.
I would estimate that 10% of your company’s DNA, aka the variations, is what makes your company unique. To stay competitive, you must know, nurture, and safeguard your 10% uniqueness. You must learn from others how to make the other 90% regular business efficient without “reinventing the wheel.”
Your sales model is not unique!
You might have a complex sales model, but this does not make it unique. If you believe your sales model is unique, you are living the business model myth. When I analyze companies with complex sales models, the model is typically complex due to mixing multiple core sales models. Usually, the company’s sales models have become complicated over time as non-conscious decisions have changed the model as either product or buyer behavior has changed.
Is your go-to-market strategy still aligned with how your buyers are buying?
If you want to be effective and efficient in your non-unique sales department, you need to make conscious decisions for which core sales model you support. Which salesperson you hire and what system support you give them to succeed depends on the sales model. Have you taken a conscious decision for which core sales model you support, or do you know? If not, then continue reading below for high-level insight on them.
Non-Myth business sales models.
There are 4 core types of sales models fitting different purposes and products
Historically different industries and businesses have a favorite sales model which they use. This seems to have changed in these years as more and more start using more than one sales model to accelerate and expand their revenue stream towards a continuous revenue stream. Interested in knowing Is Sales changing due to “product as a service”?
The Core Sales models are
Self-service: Customer does the decision-making, signing up, and using the product by themselves.
Transactional: Product sales that do not see value in long-term relationships with a customer.
Enterprise: Product sales that require personal attention and provide a tailored approach to succeed.
Consumption: No revenue is recognized until services are consumed.
Want to learn more about the sales methods and how they require different “system” support, then read this blog post Put 90% focus on Important Core Sales models, 10% on your uniqueness (iiu.dk)