The Ultimate Guide To Constructing Your Business Model

In the last post we talked about the first three of the 7 specific areas you need to
consider in your franchise prototype process. Here are all seven again:

• Primary Aim
• Strategic Objectives
• Organizational Strategy
• Management Strategy
• People Strategy
• Marketing Strategy
• Systems Strategy

These 7 areas will fine tune your plan for the ultimate level of success. Today we are
going to cover the last four.

Think of constructing your business model like planting a tree. At first, it’s so small and
weak you wonder if it will even make it through the night. But you keep watering,
fertilizing and nurturing it. Your ideas will grow the trunk and each of these strategies
will extend out as the branches of your now strong tree. Finding the perfect support
staff, employees, vendors/suppliers and other relationships will make your tree flourish
with leaves and flowers.

Management Strategy
The way you structure your management team is not only essential to your growth, but
the happiness of your employees and ultimately, your customers/clients. This strategy
is results-oriented and doesn’t depend on the people, but the actual system that’s in

A management strategy is, in short, a set of standards that include goals, rules, a
mission statement and other concrete things that tell your employees how to act, your
management how to grow your business and your customers/clients what to expect.
These should all be in perfect alignment with your business goals.
Employee Appreciation

You need to put together a people strategy that shows your employees how you feel
about their job performance and dedication to your business. They also need to
understand “why” they are doing specific tasks. This helps them to personally connect
to their job which in turn leads to better production and a happier workplace.
There are a number of strategies you can use to keep it interested at “the office”:

• Performance Incentive Programs
• Contests that reward high performance
• Employee of the Month
• Performance/Holiday Bonuses

These are just a few of the ideas you can use. One of the best ways to appreciate your
employees is by calling a meeting and asking them how they would like to be rewarded.
Think about it for awhile and put the best strategy into play. Keep it fresh and change up
the strategy you use from time to time to keep your employees guessing. Once they get
used to the prize, it’s time for a whole new approach.

You need to build a community within your company. There needs to be support,
appreciation and respect. The more “at home” an employee feels, the better they will
perform and the higher their level of loyalty.

Marketing Strategy
Marketing is, of course, essential to the success of any business, but it also must work
cohesively with the other strategies you’re using. There are two major pillars of a
successful marketing strategy: The demographic and psycho-graphic profiles of your

The psycho-graphic tells you what your customers are the most likely to buy and the
demographic tells you who they are, which can help you learn why they buy specific
items. Without this information, it simply doesn’t matter how good your business
prototype is.

Systems Strategy

There are three types of systems in every business:
• Hard Systems
• Soft Systems
• Information Systems

Hard systems refer to inanimate system or systems that have no “life”. Soft systems are
those that could be living. Information systems which are, of course, everything else,
including customer data, product information, financial…anything with data and

The most important of all three systems is the soft systems because it includes the sales
systems your business uses. In your sales system the two keys to success are: structure
and substance. Structure being what you sell and substance being how you sell it.
All three systems are essential to the success of your business and while they all have
their own very specific roles, they all must work together to get the job done. This also
goes for your entire business development program.

I want to take a moment to recap on the ideas we went over through the business
development lessons.
An entrepreneurial myth, or e-myth, is an assumption that anyone can succeed at
business with:

• Desire
• Some capital
• Projected a targeted profit

There are essentially three key roles that need to be filled to set your business up for

• The Technician
• The Manager
• The Entrepreneur

The four different stages of a business life cycle are:

• Infancy
• Adolescence
• Growing Pains
• Maturity

There are a few things we are going to talk about:

• Business Format Franchise
• The Franchise Prototype
• Franchise Prototype Standards

There are three main areas of business development:

• Innovation
• Quantification
• Orchestration

7 specific areas you need to consider in your franchise prototype process. Here are all
seven again:

• Primary Aim
• Strategic Objectives
• Organizational Strategy
• Management Strategy
• People Strategy
• Marketing Strategy
• Systems Strategy

We can help you work through all of these areas and give your business a jumpstart that
puts you ahead of your competition right from the start.