What Business Are You Really In?

The Strategy Shift That Made McDonald’s Billions, And What It Means for Your Business Plan.

For years, I thought McDonald’s was in the burger business. Like most people, I saw the golden arches and instantly thought: fast food, fries, Happy Meals. But it wasn’t until I looked deeper, really studied how the business worked, that I realised something far more interesting.

McDonald’s isn’t in the food business. It’s in the real estate business.

Sure, they sell burgers and shakes, but that’s not where the real value lies. The turning point came when Ray Kroc, the man who scaled McDonald’s into a global powerhouse, made a bold strategic shift. He realised that owning the land beneath every franchise was where the real money was. 

So instead of just collecting a percentage of food sales, McDonald’s started buying the property and leasing it back to the franchisees. It created a dependable, scalable, asset-backed income stream, and that’s what made the company truly powerful.

That insight blew me away. Because it made me ask a far more important question, not just about McDonald’s, but about every business, including mine:

“What business am I really in?”

It’s a question that too few small business owners stop to consider. You might think you’re in the business of photography, coaching, gardening, or design, but what if you’re actually in the business of storytelling, transformation, trust, or logistics?

Once you understand what your business really does, what makes it valuable, your strategy changes. Your pricing changes. Your growth potential expands.

That shift in thinking is what this blog is all about. Let me show you what we can all learn from one of the greatest business models of all time—and how you can apply it to your own business today.

1. The McDonald’s Mindset Shift: From Burgers to Real Estate.

When I first started out in business, I was laser-focused on what I sold, just like most people. Products, services, time. That’s how I measured value. But studying McDonald’s forced me to think differently.

Ray Kroc, the man who franchised McDonald’s into a global machine, had a wake-up moment early on. Despite selling millions of burgers, he realised the margins weren’t enough. He had little control over quality, and his income depended too heavily on the performance of independent franchisees.

So what did he do? He stopped thinking like a restaurant owner and started thinking like an investor.

Kroc launched a company called Franchise Realty Corporation, which bought the land for every new McDonald’s location. Franchisees didn’t just pay a fee to operate the brand; they paid rent to McDonald’s. The company became its ‘own’ landlord. Over time, this became a more reliable and scalable source of income than selling burgers.

Fast forward to today, and McDonald’s earns more from property than from food. In fact, it owns some of the most valuable real estate in the world.

Here’s the lesson I took from that:

“What you sell isn’t always where your value lies.”

I’ve worked with coaches who think they’re selling sessions, but they’re really selling confidence.
I’ve seen photographers who thought they were selling images, but they’re actually selling legacy.
And retailers who think it’s about products, when it’s really about distribution power or brand loyalty.

Once you stop focusing solely on the output and start identifying the engine of value underneath your business, everything changes. Pricing, Strategy, Growth plans, and even who you hire. McDonald’s didn’t become a giant by selling better burgers. They won by redefining the game they were playing. And that’s exactly what small business owners need to do, too.

2. Identifying Your Real Business Model.

After I understood what McDonald’s had really done, pivoted from fast food to real estate, I started asking myself a powerful question with every client I mentored:

“What business are you really in?”

And nine times out of ten, the answer surprised them. Take, for example, a personal trainer I worked with. She believed she was in the fitness business. Her days were packed with 1-to-1 sessions, workout plans, and meal tracking. 

All built around the idea of selling time and expertise. But when we looked at her top-performing clients, the ones who paid the most and stayed the longest, it wasn’t about reps or routines.

They were buying accountability. They didn’t want to learn the science of fat loss; they wanted someone to check in, motivate them, and make sure they didn’t quit.

So we restructured her model. Less focus on hours, more focus on outcomes. She started offering results-driven packages with regular check-ins, a private group, and milestone incentives. Revenue doubled in six months.

The same pattern shows up across industries. A website designer thinks they’re in tech, but they’re actually in perception and trust. A copywriter believes they sell words, but they’re really selling conversion and cash flow.

This shift doesn’t just clarify what you do, it sharpens your pricing, your messaging, and even how you prioritise your time.

Here’s how I help clients do it:

• We review where the real value is delivered, not where you think it is.
  
• We look at what your best customers rave about, not what you market.
  
• And we define your business model by outcomes, not by inputs.

So, before you invest more time trying to scale what you think is working, pause. Step back. Ask yourself: What’s the real value I deliver? Because once you answer that, everything in your business can be rebuilt around it, smarter, stronger, and more profitable.

3. Why Misidentifying Your Business Limits Growth.

I’ve seen it too many times: a small business hits a ceiling, not because they lack talent, demand, or hard work, but because they’ve misunderstood the real business they’re in.

Let me give you an example.

A local florist came to me frustrated. Her business was flatlining. She thought she was selling bouquets, so she kept competing on price, variety, and same-day delivery. But when we looked deeper, the truth came out: her best margins came from funeral and wedding packages, not from walk-in orders.

What she was really in was the emotional milestone business. Her value wasn’t the flowers; it was the trust people placed in her during major life moments.

Once she accepted that, everything changed. She streamlined her retail operation and repositioned herself as a ceremonial design consultant. She raised her prices, packaged her offerings, and even started collaborating with event planners.

Revenue jumped. Stress dropped. And suddenly, growth felt natural again.

It’s the same with many coaches, consultants, tradespeople, and even creatives.

You may think you’re in the service delivery game, but what if your real business is outcome management, reliability, or emotional relief?

When you misidentify your business, you:

• Price incorrectly.
  
• Attract the wrong clients.
  
• Chase trends that don’t serve you.
  
• And worst of all, you miss the scalable part of your offer.

When you get clear on what business you’re actually in, strategy becomes obvious. So here’s what I ask my clients:

“If I removed your product, what would your customer still come to you for?”

That question often opens doors they didn’t even know were there.

4. The Planning Shift: From Activity to Assets.

When I first started working with small business owners, I noticed a recurring pattern. Their plans were always activity-based: “launch a new product,” “post more on social media,” “hire an assistant.” They were focused on doing more.

But activity doesn’t build a business. Assets do.

This shift, from doing things to building things, completely changes how you plan for growth.

Let me give you a real example.

One of my clients ran a bookkeeping service. She was great at what she did, but she was stuck in the time-for-money trap. Her plan was all about “getting more clients” and “working longer hours.” That’s activity.

When we reframed her strategy, we focused on turning her skills into assets:

• A set of templated onboarding processes,
• A digital bookkeeping package for startups,
• And a small group mentoring offer for freelancers wanting to do it themselves.

That changed everything. She could now scale without more hours, because she wasn’t selling time; she was selling value assets.

This is exactly what McDonald’s did when it shifted their strategy. They realised they weren’t just flipping burgers, they were accumulating real estate, one franchise at a time. The more franchises they sold, the more locations they controlled. Each location became an appreciating asset.

The takeaway?

If your business plan is just a to-do list, it’s not a strategy. You need to ask:

• What can I build that grows in value?
• What systems, products, or IP can make the business more than just me?

That’s exactly why I built the 365/90 planning system around a simple but powerful cycle: Plan → Run → Review → Revise. It’s not about creating a one-off document and forgetting about it. It’s about running your business like a well-managed project. Every 90 days, you define a clear game plan aligned to your bigger vision. Then you execute. At the end of the sprint, you review what worked and what didn’t, and revise the next phase based on real-world feedback.

This loop helps small business owners stay focused, stay agile, and stay strategic, without getting lost in the weeds. It’s the difference between aimlessly reacting and proactively building something of long-term value.

5. Lessons for Small Business Owners.

When I finally understood what McDonald’s was really doing, buying land and leasing it back to their franchisees, it hit me hard. They weren’t just in the fast-food business. They were in the real estate business, with burgers as the vehicle.

And that insight is gold for any small business owner.

Here’s why.

Most people start a business based on what they do: a web designer, a coach, a florist, a plumber. That’s fine at first, but if all you’re doing is selling your time, you’ve just built yourself a job.

The lesson is this:

“You’re not just in the business of what you do. You’re in the business of building something that runs without you.”

That could be:

• A repeatable service system,
• A strong client base under contract,
• A library of digital tools or training,
• A physical location with recurring customers,
• Or an IP-driven framework like my own 365/90 planning system.

Let me give you another example.

I worked with a freelance copywriter who thought she was just “writing words for money.” But when we reviewed her business through this lens, she realised her real value wasn’t the writing, it was her conversion process. So, she turned it into a training program for small agencies. That became an asset. Now she earns money from licensing, not just hours at a desk.

The shift is subtle but powerful.

• Ask yourself: What am I really building?
• What would someone pay to buy, even if I walked away tomorrow?
• What would double the value of my business, not just the revenue?

That’s how you turn a small business into a valuable business.

McDonald’s didn’t start as a real estate empire. But once they saw the real game, they changed the rules.

So can you.

Final Word: Planning Is How You See the Truth.

Ray Kroc didn’t transform McDonald’s because he was selling better burgers. He transformed it because he stopped, reviewed, and rethought what business they were actually in. That moment of insight, realising McDonald’s wasn’t a fast-food company, but a real estate empire, came not during the chaos of daily operations, but through a deliberate review process. He was paying attention. And that changed everything.

That’s the lesson for all of us.

Business planning isn’t just about charts and forecasts; it’s about clarity. It forces you to zoom out, challenge assumptions, and uncover the deeper opportunities sitting under your nose. But the magic doesn’t happen just from writing the plan—it comes from revisiting it, measuring what worked, and adjusting as you go.

That’s why I believe in, and teach, the 365/90 planning system. It builds regular, structured review into your business rhythm. It helps you make better decisions, spot trends faster, and, like Kroc, sometimes see that your entire business model might need to shift.

Planning isn’t a chore. It’s a strategic weapon.

Your Next Step: Rethink Your Business with a 365/90 Plan.

If Ray Kroc hadn’t paused to reflect, McDonald’s might still be just another burger joint. He didn’t work harder; he thought smarter. That’s what great planning does.

The 365/90 Planning Process is built for small business owners like you. It gives you a simple, repeatable structure to Plan, Run, Review, and Revise every 90 days—so you’re always moving forward with clarity and purpose.

👉 Ready to see what business you’re really in?
Book a 1:1 Planning Session with me today and let’s build a plan that moves the needle. Hit the button below.

Stop running in circles. Start planning with intent.