Put Meaning at the Center of Your Business Model

Most business models do a good job of covering the basics of how your company serves your customers better than your competitors. But they don’t really explain why the company is important. Why should anyone care about your company’s existence? Why should they have to walk past your competitors to get to you? What is your real differentiation in the eyes of your target customers? Without the right answer, you won’t be able to stand out in the market for long. If the shine wears off or your competitors match your pricing, you’ll lose both customers and employees. It’s bad for your long-term competitive position and bad for society. It makes sense to add greater meaning beyond money to all stakeholders: investors, employees, and communities. Successful business models connect with customers, employees, and investors and build a compelling long-term vision. The only way to achieve this is to use empathy and imagination to deeply understand the needs of your target customers. In this article, author Ron Scheich, founder and former chairman and CEO of Panera Bread, explains how his team listened to its customers and pinpointed the meaning behind its business model. Learn how we turned a low-margin French bakery into a profitable French bakery cafe.