Wednesday, September 25, 2013
Business Models For Dummies by Jim Muehlhausen - Book review
Business Models For Dummies
By: Jim Muehlhausen
Published: June 10, 2013
Format: Paperback, 384 pages
Publisher: For Dummies
"Simply put, a business model is your profit formula. It's the method you use to acquire customers, service them, and make money doing so", writes entrepreneur, business coach, and founder of The Business Model Institute, Jim Muehlhausen, CPA, JD, in his idea packed and very hands on book Business Models For Dummies. The author describes the importance of a business model, how to design an effective structured business model, and how to know hen the model needs updating, and provides the practices for that change.
Jim Muehlhausen understands that a great business model is essential for company success. The author places the business model at the very heart of the business, and as a result, the business model must be a strong and viable one. Jim Muehlhausen demonstrates the value of the business model, and points out that no amount of intelligence, skill or resources is sufficient to overcome a weak and flawed business model.
The author presents a complete examination of the concept of the business model, dispelling the misconceptions, and providing the strategies and techniques for designing, upgrading, and even rebuilding a strong business model.
Jim Muehlhausen (photo left) recognizes that the concept of the business model is not well known among entrepreneurs and business leaders. The author points out this lack of understanding is due to a low level of discussion of the principles and practices of the business model. With the premise that a great business model is critical for success, Jim Muehlhausen offers a comprehensive analysis of the principles and practices surrounding this key business success ingredient.
Jim Muehlhausen shares the idea of a business model as comprised of mission, objectives, strategy, and tactics. This all encompassing set of principles forms both a firm direction for the business, as well as establishing the rules and methodology by which the company operates on both a short and long term basis. A strong business model defines the business and establishes the foundation from which to establish and build a top performing company.
Jim Muehlhausen divides the book into five overarching sections that describe the various aspects of the business model as follows:
* Getting started with business models
* Creating a winning business model
* Dealing with change
* Business model innovation
* The part of tens
For me, the power of the book is how Jim Muehlhausen combines a comprehensive overview of the concept of the business model, with the practical strategies and techniques for putting the business model into action. The author moves far beyond the standard discussion of business plans, explains the differences between a business model and a business plan, and brings the powerful concept of the business model into the conversation.
Jim Muehlhausen presents the business model as a proactive and holistic approach to operating a business, that not only provides strategies and tactic, but encompasses the business mission, moral compass, and overall direction. Jim Muehlhausen guides the entrepreneur through all of the important steps to both understanding the concept of the business model, to its creation, and its eventual changes and revisions. One of the powers of the business model, as outlined by the author, is its strength and adaptability for innovation within the business.
Unlike the business plan, and its more static and reactive nature, the business model sets the framework that not only enables innovation but has all types of innovation as an integral part of the model. Jim Muehlhausen also includes numerous case studies and examples to further illustrate the principles in action in the real world.
I highly recommend the transformational and competitive advantage building book Business Models For Dummies by Jim Muehlhausen, to any entrepreneurs, start up venture leaders,and innovators seeking a clear and concise guide to the purpose, principles, and practices of the business model. This book will change forever your perception of the limited business plan; and help you make the transition to thinking and operating your business based on the more robust business model foundation.
Labels: book reviews
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