The Business Model Truth Test

The Business Model Truth Test: Build from Alignment, Not Assumption

Not every profitable model is sustainable.

And not every sustainable model reflects purpose.

Legacy builders understand that a business model is more than just a profit plan—it’s a blueprint for how you want to live, lead, and leave a lasting impact.

If it’s not aligned, it’s not sustainable. Your model should multiply peace, not just profit.

The Truth Test: Are You Building a Business You Can Live With?

“Have you ever created a business that ‘worked’ on paper—but didn’t reflect who you are or how you want to live?”

“You will know them by their fruits…” – Matthew 7:16

If the fruit of your business is frustration, exhaustion, or avoidance—it’s time for a truth test.

The 4 Types of Business Models (Inspired by Thermodynamics)

Just like physical systems, businesses can be categorized based on how they operate and interact with their environment.

Here’s a quick breakdown:

1. Isolated Businesses:

   • Low Profit, Low Volume

   • You don’t charge much, and you don’t sell much.

   • This is the type of ‘business’ most creators have—lots of effort, little return.

   • Example: Small craft sellers or part-time freelancers, commodity-based businesses

2. Closed Businesses:

   • Low Profit, High Volume

   • You sell a lot, but your profit margins are tight.

   • Example: High-turnover e-commerce stores or low-margin wholesale.

3. Adiabatic Businesses:

   • High Profit, Low Volume

   • You serve a select group of high-value clients.

   • Example: High-ticket coaching, consulting, or boutique agencies.

4. Open Businesses:

   • High Profit, High Volume

   • You charge premium rates and sell to large audiences.

   • Example: Scalable SaaS, global product lines, or high-end masterminds.

Choose Wisely: Not All Business Models Are Created Equal

Any of the last three models can work depending on your goals, skills, and capacity.

The first one, however, rarely leads to long-term success.

It’s a path many creatives fall into, but it often results in burnout and underpricing.

Before you pick a model, ask yourself:

• What kind of business do I want to run?

• Who do I want to serve?

• What lifestyle do I want to support?

• How do I want to spend my days?

The Business Model Truth Test

Use this checklist to evaluate whether your business model is designed for purpose and profit:

1. Purpose Alignment: Does my model clearly reflect my mission and calling?

2. Profitability: Is this model consistently producing enough revenue to sustain itself?

3. Peace: Does this model support my rest, rhythm, and well-being?

4. People Fit: Do I genuinely enjoy serving the people my model attracts?

5. Scalability: Can this model grow without me doing everything?

6. Legacy Potential: Can this model be passed on, automated, or licensed?

If your model costs you your values, it’s too expensive.

✅ A business model isn’t just about how you make money—it’s about how you live your values. It affects your time, energy, family, clients, and joy.

✅ Every model either supports or sabotages your long-term vision. Your structure should match your future—not just your current hustle.

✅ The best model multiplies your mission without multiplying burnout. You should be able to scale without breaking yourself.

📬 Ready to Build a Business You Can Live With?

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Let’s root deep.
Let’s reach wide.
Let’s build what outlives us.

— Carolette, The Mindset Mechanic