Bad Business Models

Bad Business Model

One of the main problems with a bad business model is offering too many services under one roof (i.e., one common corporate shell).  And even if you offer different services under separate corporate structures, then you are still stretching yourself beyond what you can be BEST at.

<—Mable Peabody is breaking one of the foundational rules of the Good To Great book: The Hedgehog Concept (see review here).  In his research, Jim Collins found that the companies which went from to Good to Great:

1.  Only did what they could be the best in the world at,

2.  Figured out what the single denominator, or profit per x, which drove their “economic engine”, and

3.  Only pursued what they were passionate about

So you need to rethink your model when it involves too many offerings.  There are other ways to make money, but they may not be the ways YOU should make money.  You can’t do everything well.

Make sure you are passionate about what you do, and that you can be your best at it.