Do You Have A Business Model? Advertising is Not A Business Model

So you have had a great idea for a business, you got yourself set up and then you were asked what your business model was…. ahem, excuse me? That’s right, what the hell is a business model???

This is a common situation for many business owners who often have two pretty straight forward and perfectly understandable answers as to what their business model is, the first being ‘well to sell stuff and make money right?’ and the second, and this is really the topic of the post today ‘invest in advertising to sell stuff and make money’. Close, but no cigar, and here is why. 


There is absolutely no business on the planet which should not be investing in advertising, this should be a given from the get go, and it is just as important as installing doors or staff in the workplace. To say that marketing is a business model however is just where the plan falls down ever so slightly, as it can not be considered a model. You could most certainly look at advertising as a ‘revenue model’ as in a method by which you will gain revenue, but that falls very far short of everything that your business should be. 

A Business Model 

A business model is the framework of your business, it is about how you will construct the business and what you will sell, who to and how, a business model looks at how you will save and how you will grow, what market or industry you will be in and where you will position yourself. Simply put a business model is just that, a model of your business, hell break it down if you wish to and actually make a small toy version of your business, make a little factory which will form your supply chain and make little origami people , this will showcase what the ‘model’ is. Of course within that you’ll have to have your cardboard marketing agency who will you pay in Monopoly money or whatever, but that falls inside the model of the business rather than being part of it. 

No Sweat 

 I have been triggered about this which is why I appear to be ranting but in all seriousness if you do have a business then a model is important, it will provide your business with a certain spine, a guide with which to stick to and ultimately an identity which you can use to move forward. Advertising is a given regardless of what business model you opt to use, but at the end of the day the two are very much mutually exclusive, and if you don’t have a model then now may be the time to sit down at the drawing board and work it out. 

There, I feel a great deal better now that this has all come out, I assure you all that I shan’t mention it for some time to come.