Tweet

Is Your Business Model Healthy?

Written by: Stephanie Ward

Article Overview: But what if all the hard work you are currently doing is not necessarily the most effective way to grow your business?

Is Your Business Model Healthy?

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

Related Articles
  Create an Outrageously Healthy Environment at Home
  Feeding Your Mind Outrageously Healthy Thoughts
  The Keys to Outrageous Healthiness
  Assessing a Business Model
  Business Model vs Business Plan

Article Tags:



Related Forum Posts
Re: Franchise 'due diligence' checklist - One of the things I focus on is this: Does the Franchise fit the Business Model you are interested in? Meaning, are you going to be doing what you want to do on a daily? For example, if you are a restaurant manager now and you hate your job because of the hours, then don't buy most food franchises. You have experience of course, so it is more comfortable, but you will basically be doing very similar duties and hours as you were before. I always go through a series of questions, answers, more questions, more answers etc... to help my clients figure out what Business Model they are most interested in, I do this before even discussing a single name with them, they tell me what the business model is and then I match them up to that type of business, explain the entire business model as best I can and then and only then do we discuss the name of the company. Too many times people come to me wanting to own "abc" name brand franchise, when they don't even understand what type of business it really is and what they will be doing every day.
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Re: How does an entrepreneur stay energized? - Hi there, This subject is not only for entrepreneurs. Everybody can benefit from this, that is the reason why 'Healthy Living and Eating' is a multi billion Dollar business. Often I smile, because so much is written about it. So many different business are blooming and doing well. Whilst there is so much knowledge and opportunity to be healthy and well, the need is still growing. There is so much that could be said. The cheapest form of energy is gained by a good sleep.
Patent Walk-Through - Hello everyone! My name is Alex, I'm 18 years old and I'm constantly drawing up new ideas and inventing stuff. I sketch stuff down everywhere I go and on anything I can write on. I'm a big member of our local Future Business Leaders of America chapter (FBLA). In the future I hope to work my way up to being a Venture Capitalist. I think of myself as a pretty creative person who is very motivated. Some of the ideas and inventions I come up with are pretty far out but others I consider marketable and to have great potential. Being 18, I have little to no connections and no resources. I've been surfing this site pretty frequently for the last year and have finally decided to join the forum group. Anyway, here's my question... Basically, I have no idea how to get a patent together the costs and the overall process. As of now, I think I have a great idea that, as far as I know has not, ever been done before. I'm really excited about this idea. I'm a total novice at this and am willing to learn all that I can. Any information that you can provide me with would be great. Again the main things I want to know are: 1.Overall Process. 2.How Long It Takes. 3.Costs. 4.Anything That You Think I Should Know. 5.Tips/Experiences. 6.Confidentiality. 7.Must I Make A Physical Model of My Idea? Thanks guys! -Alex
Exclusive: Interview with Results - Hi Forum Members, I'm helping start up a Business Coaching and Consulting company here in Toronto, Ontario, Canada (a Subsidiary of RSC Business in Los Angeles). As a Research and Development Intern I am required to practice my listening and interview skills by surveying Small and Medium Businesses on thier Business. This Survey is designed by RSC Business to also assist the Business being interviewed more insight into their own business. I am looking to interview about 30 businesses across North America over the span of 3 months. At the end of these interviews I will be publishing a report of the results and they will be made available for free to the Interviewees. The Report data will include responses from a minimum of 100 interviews. I would like to extend this opportunity to members of the Forum. If you would like to have this short 20-30 minute interview conducted on your Business and you reside in North America please send me an email or PM. Please contact me at andy[at]jvprosperity[dot]com to arrange our interview and to get free access to the results when they are published.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Work at Home Moms and Their Bad Rap?

E Mail Marketing Campaigns

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.