Business Models For Dummies®

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Copyright © 2013 by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

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Library of Congress Control Number: 2013935679

ISBN 978-1-118-54761-8 (pbk); ISBN 978-1-118-61252-1 (ebk); ISBN 978-1-118-61267-5 (ebk); ISBN 978-1-118-61275-0 (ebk)

Manufactured in the United States of America

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About the Author

Like most entrepreneurs, Jim Muehlhausen has an eclectic background, ranging from CPA to franchisee, attorney, business owner, consultant, franchisor, public speaker, university professor, and book author.

While still attending the Indiana University School of Law, he became the youngest franchisee in Meineke Discount Muffler history (1987–1991). After successfully selling that business, Jim founded an automotive aftermarket manufacturing concern. During his nine-year tenure with that business, the company achieved recognition from Michael Porter of the Harvard Business School and Inc. Magazine in the IC 100 Fastest Growing Businesses.

Fifteen years ago, he found his true passion, serving as a consultant, business coach, and advisor to hundreds of businesses. During his 5,000+ one-on-one consulting sessions with business owners around the globe, Jim realized that while all business issues look unique, they rarely are. Most businesses are working to seize the same opportunities and overcome the same obstacles. To help business owners share best practices and stop learning from the “School of Hard Knocks,” he wrote the well regarded book The 51 Fatal Business Errors and How to Avoid Them (Mulekick Publishing).

His ongoing research led to the discovery of fatal business error #52: You can’t outsmart, outhustle, or outmaneuver a weak business model. The more he studied business models and worked with business owners, the more convinced he became that business models were the key to a great business.

In 2009, he founded the Business Model Institute, which is devoted to the innovation and study of business models. Jim writes several articles for the Institute each year as well as contributing to publications such as Inc., The Small Business Report, Entrepreneur, BusinessWeek, and various business journals. He also speaks to associations, groups of business owners, and corporations about business model assessment and innovation.

Dedication

This book is dedicated to my clients who have graciously shared their businesses with me over the years. Without their candor, support, and great depth of business knowledge, this book would not be possible. I am honored to work with these talented men and women who openly share their business experience, skills, and vast knowledge with me. Much of these experiences are included in this book and I cannot thank them enough for the honor of being included in their lives. Thank you for the privilege of working with you.

Author’s Acknowledgments

When you read a book it’s easy to assume it’s the brainchild of the writer. Nothing could be further from the truth. It takes a village to raise a child and it takes a small army to write a book. This book is no different. A talented army of people made this book possible.

This book tackles dozens of theories, constructs, and concepts. Jak Plihal, Huss Sadri, and Michael Jones all contributed ideas and input toward the book. Any publishers looking for the next great business book should contact Merryck Leigh and Steve Shaer. Both of them served as brainstorming partners, sounding boards, and trusted confidants during the creation of this book. I cannot thank them enough.

I’m a business thinker, not a writer. Laurie Davis was instrumental in turning my thoughts into well punctuated, readable content.

The entire team at Wiley is due immense credit. Stacy Kennedy saw the need for this book and made sure it got published. Jennifer Moore helped craft the initial chapters and I can’t thank my editor, Sarah Faulkner, enough. Sarah was a joy to work with on all the tough edits — pushing to make the book its best with a deft and likeable manner.

Thanks to my team at the Business Model Institute for all their work behind the scenes. Huss Sadri and Sue Lee researched facts and stories for the book. Stefanie Keffaber and Christopher Loch deserve praise for helping get the Institute off the ground in its early days. Without their hard work, there would be no Business Model Institute.

Many clients and business owners I have met in my travels provided real-world examples to make concepts come to life. Thanks to them for opening up their businesses to me. Without this real-world content, I would not have had the opportunity to create the concepts and principles in this book.

Thanks to my family and friends for the support and patience provided as I wrote this book on a tight timetable. The greatest thanks go to my wife Beth who always has been the wind beneath my wings. Her intellect, insight, and patience have been vital to my success. Thanks sweetie!

Publisher’s Acknowledgments

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Some of the people who helped bring this book to market include the following:

Acquisitions, Editorial, and Vertical Websites

Project Editor: Sarah Faulkner

Acquisitions Editor: Stacy Kennedy

Assistant Editor: David Lutton

Editorial Program Coordinator: Joe Niesen

Technical Editor: Rita Gunther McGrath, PhD

Senior Editorial Manager: Jennifer Ehrlich

Editorial Manager: Carmen Krikorian

Editorial Assistants: Rachelle S. Amick, Alexa Koschier

Art Coordinator: Alicia B. South

Cover Image: © iStockphoto.com / VOLODYMYR GRINKO

Composition Services

Project Coordinator: Patrick Redmond

Layout and Graphics: Jennifer Creasey, Joyce Haughey

Proofreaders: Barbara Arany, John Greenough

Indexer: Steve Rath

Special Help: Jennifer Moore

Publishing and Editorial for Consumer Dummies

Kathleen Nebenhaus, Vice President and Executive Publisher

David Palmer, Associate Publisher

Kristin Ferguson-Wagstaffe, Product Development Director

Publishing for Technology Dummies

Andy Cummings, Vice President and Publisher

Composition Services

Debbie Stailey, Director of Composition Services