Is it Time to Review Your Business Model?
Your business model is what makes your business unique, its’ how you will stand out from your competitors, how you will provide value to your customers and how you will continue to grow. Simply put it is how you plan to make money!
Any business that has developed a business plan will have already outlined how they intend executing their business model. But overtime a number of external and internal changes will affect the profitability and efficient operation of your business. If you fail to recognise the changes and adapt your model the chances are your business will start declining or be overtaken by more responsive competitors.
What to look out for:
- Are you still doing things the same way as 10 years ago?
- Has your ideal customer changed?
- Has your distribution channel altered
- Are you still providing value to your target customer?
- Has your typical revenue stream changed in any way?
- Have the resources needed to produce your goods or services changed?
- Has your cost structure changed?
- Are you feeling trapped by the lack of cash flow?
- Are you working in excess of 60 hours per week in your business?
It is very easy to continue doing things as they have always been done. Let’s face it at one point in time it worked very well and provided you with a tidy profit. However technology and customer trends are changing quicker than ever creating a turbulent business environment. What this means is your model will be severely tested and unless you are prepared to make some changes your profitability will be eroded.
When it comes to changing your business model there is no magic bullet. Many people once they realise change is necessary get quite overwhelmed by the amount of work that is required so look to make small incremental steps. A philosophy of continual improvement is much easier to implement and manage than massive sweeping changes. You don’t need to fix everything immediately or do it all yourself so tackle one issue at a time and seek assistance!
If you would like assistance contact Richard Kemp (firstname.lastname@example.org) at Watts Price Accountants today to help you ascertain if your business model needs fine tuning and the steps to returning your business to profitability!
Richard Kemp – Watts Price Accountants
The advice provided on this Article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs.