How to Create a Successful Internet Business.
I am in the process of creating an Internet Business. Of course, my goal is for it to be successful. As with any business in the development stage, the first thing I need to do is develop a business model. The reason I need to do this first is that it describes the way in which my company makes money. After developing the model, I will have a map of what I need to do to be profitable. Developing a business model is critical. Because I am in the process of developing my own model, I thought it might be beneficial to other internet entrepreneurs if we work through the process together.
One of the best generic business models I have ever run across is the B-I Triangle, developed by Robert Kiyosaki with Sharon Lechter, introduced in “Rich Dad’s Guide to Investing” and explained very clearly in “Rich Dad’s Before You Quit your Job”. I highly recommend that every entrepreneur read “Before You Quit Your Job”, even if you have already quit. The reason the B-I Triangle is such a good business model is that the authors present the model in a very elegant, yet simple graphic that is easy to understand and remember. The model has five jobs that are required for success. These five jobs of a business are held together in a framework of a successful business.
The five jobs are product, legal, systems, communications, and cash flow. The framework holding the five jobs together are Mission, Leadership, and Team. Each one of these aspects of your business needs to be fully developed to create a truly successful business.
The remainder of this article briefly defines the aspects of the B-I Triangle in general terms to set the stage for the future articles. First listed are the five jobs of this business model. They are:
Product –Whatever you are offering your customer.
Legal – Includes multiple aspects of your business, beginning with the right entity structure for your business. You also need to remember other aspects of your business require legal support as well including copyrighting, partnerships, licensing, etc., just to name a few.
Systems – Business structure required to support your company.
Communications – Required to reach your customers. Also necessary for partners, investors, employees, vendors, and other people involved, even superficially, with your business venture.
Cash flow – The meat of the matter. Without positive cash flow your business will collapse.
The framework that holds your entire business together consists of Mission, Leadership, and Team.
Mission – The true purpose of your company
Team – People who support the purpose of your company and the jobs necessary for success.
Leadership – Multiple jobs including defining the company’s mission, creating the team, keeping the company strong, growing the company, etc.
This article is the first of in a series of nine articles designed to work through the eight aspects of business model as they relate to creating a successful internet business. I am writing these articles to help me develop my business model. Let’s work together and by the end of the series of articles, we both will have developed a model for many successful years of business.