In my one-to-one coaching sessions with firm owners, I periodically deal with someone who has clearly chosen the wrong business model for themselves and are now suffering either mentally or financially as a result. In terms of designing your business model and org chart, the old adage, “measure twice, cut once” would save loads of heartache for those willing to think strategically about what kind of business to build. Most new owners erroneously believe that “bigger is better,” and make poor decisions regarding hiring, adding office space, increasing expenses, etc.
As a starting point for understanding which business model is best for you, it’s important to understand the various roles an owner must perform. Michael Gerber (author, business skills trainer) tells us that there are three roles that every business owner must be able to fulfill either himself or with the help of employees. The three roles are: