Discovering Your Big Niche That Will Help You Achieve Your Big Dreams – Episode 1 – Part 3
Do you have a clearly defined business model? Do you know how you were providing your products and services profitably to your customers? In this episode, Clay Clark (Business coach and former US Small Business Administration Entrepreneur of the Year) talked about how to define a rough business model for discovering your big niche that will help you achieve your big dreams. The first set to defining a rough Business model is determining all of the rough costs associated with the business. These are all of your hard costs. Hard costs are things like insurance, salaries, rent, utilities, loan payback, and other recurring items. These are all things that you will be spending money on regardless of whether or not you sell one product or service. After having defined the hard costs for a business, you must determine the variable cost. These are costs that are associated with selling one product or service. They moved things like cost of customer acquisition, product or service expenses, commission, and other expenses that are paid when you sell a product or service. If you are not selling any products or services, then you will not have any variable cost. Variable cost go up with the more transactions that your business will do. You must be able to determine the accounting and pro forma for the business upfront, which is what will prevent your business from scaling a fail. The next step would be to determine a breakeven point for your rough business model. In this episode, Clay Clark gives the example of the cupcake company that has used Thrive for business coaching. If you were interested in hiring a business coach to help you achieve your goals, make sure that you sign up for a free assessment on the website. If you want to come out to one of the business workshops, make sure that you get a ticket today for the next one.