Is Your Business Model Healthy?
Is Your Business Model Healthy?
But what if all the hard work you are currently doing is not necessarily the most effective way to grow your business?
A solid business is built around a business model that works. If you think you have a great business model in place then it will only take a few minutes to confirm that this is the case.
If you aren’t quite sure if your business model is functioning optimally, now is the perfect time to give it a quick check-up and find out.
When I talk about your business model I simply mean the way your business makes money. Think about these basic components:
* Your business offer products and services
* You sell them for a certain price
* A certain number of people buy them (once or even better, repeatedly)
* You deliver them in a certain way (in person, electronically, third party, etc.)
Why not revisit your business model to see if there are a few ways you can change it. This doesn’t have to be complicated, simply take a piece of paper and a pen or open a new file on your computer.
Write down all the products and services your business currently offers, the price for each, how many clients you have who purchase each offer and how frequently. Total this up, subtract your costs, and see if this structure is going to bring you the financial results you want.
Now imagine how many different ways you can upgrade your business model to attract more business and leverage what you already have.
Get creative and try out several combinations of products and services. Here are some ideas:
- Perhaps you can add something new, additional revenue streams.
- You can also think about increasing the amount of what you already deliver.
- Or maybe at this point it’s even best to remove a part that isn’t profitable.
- Consider changing the way you deliver your products and services.
- What if you didn’t change a thing except to increase the prices (speaking or pricing, when is that last time you increased the prices for your products and services)?
Let’s use the business model of a consultant as an example.
CURRENT BUSIENSS MODEL
Product/Service: Consulting services delivered by the consultant alone
Price: Per hour
Clients: One at a time full time or two to three part-time
Delivery: In person
UPDATED BUSINESS MODEL
Product/Service: Consulting in person delivered by the consultant, additional consultants working for you, speaking, selling intellectual property (an ebook, audio, or other information product)
Price: Consulting per project (and part of the fee for consultants working on behalf of the consultant), speaking per event, intellectual property per item
Clients: Many at one time
Delivery: In person, automated (via the internet)
Are you starting to see the possibilities for your business? Renewing your business model can re-inspire your enthusiasm for what you do as well as increase your desire for marketing your business.
A healthy business model is the foundation for a successful business. Take time to examine your business model and make sure it is the strongest it can be.
With a few simple changes, you will probably make more money and you may even find that you don’t have to work as hard to do so. Now who doesn’t want that!
© Stephanie Ward, 2007
Is Your Business Model Healthy - To learn more about this author, visit Stephanie Ward's Website.
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As a business owner I know you are working very hard in your business, serving clients and staying on top over everything else that needs to be managed.
But what if all the hard work you are currently doing is not necessarily the most effective way to grow your business?
A solid business is built around a business model that works. If you think you have a great business model in place then it will only take a few minutes to confirm that this is the case.
If you aren’t quite sure if your business model is functioning optimally, now is the perfect time to give it a quick check-up and find out.
When I talk about your business model I simply mean the way your business makes money. Think about these basic components:
* Your business offer products and services
* You sell them for a certain price
* A certain number of people buy them (once or even better, repeatedly)
* You deliver them in a certain way (in person, electronically, third party, etc.)
Why not revisit your business model to see if there are a few ways you can change it. This doesn’t have to be complicated, simply take a piece of paper and a pen or open a new file on your computer.
Write down all the products and services your business currently offers, the price for each, how many clients you have who purchase each offer and how frequently. Total this up, subtract your costs, and see if this structure is going to bring you the financial results you want.
Now imagine how many different ways you can upgrade your business model to attract more business and leverage what you already have.
Get creative and try out several combinations of products and services. Here are some ideas:
- Perhaps you can add something new, additional revenue streams.
- You can also think about increasing the amount of what you already deliver.
- Or maybe at this point it’s even best to remove a part that isn’t profitable.
- Consider changing the way you deliver your products and services.
- What if you didn’t change a thing except to increase the prices (speaking or pricing, when is that last time you increased the prices for your products and services)?
Let’s use the business model of a consultant as an example.
CURRENT BUSIENSS MODEL
Product/Service: Consulting services delivered by the consultant alone
Price: Per hour
Clients: One at a time full time or two to three part-time
Delivery: In person
UPDATED BUSINESS MODEL
Product/Service: Consulting in person delivered by the consultant, additional consultants working for you, speaking, selling intellectual property (an ebook, audio, or other information product)
Price: Consulting per project (and part of the fee for consultants working on behalf of the consultant), speaking per event, intellectual property per item
Clients: Many at one time
Delivery: In person, automated (via the internet)
Are you starting to see the possibilities for your business? Renewing your business model can re-inspire your enthusiasm for what you do as well as increase your desire for marketing your business.
A healthy business model is the foundation for a successful business. Take time to examine your business model and make sure it is the strongest it can be.
With a few simple changes, you will probably make more money and you may even find that you don’t have to work as hard to do so. Now who doesn’t want that!
© Stephanie Ward, 2007
Is Your Business Model Healthy - To learn more about this author, visit Stephanie Ward's Website.
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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