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.
Business Model 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.
Business Model Improvement 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 to apply these concepts.
Consultant’s Business Model Example
Consultant’s Current Business 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
Consultant’s 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
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