9th Key Factor – Your Business Model
The problem of business model rigidity and management’s lack of flexible thinking is also seen in the immediate period of the COVID-19 virus restrictions. Many businesses were so unprepared because they did not appear to have made any provision for risks in their current model. As a result, many dollars and much time has been lost which will never be recovered.
It is not my intention to prescribe what business model might work in the future as there are so many variables and time does not permit. The right business model for your business can only be crafted by you to meet your specific requirements.
If the above information suggests the concept of business models is invalid, that is not my intention. Business models do have a value at all stages of the life of your business. In the first instance, preparing a business model with full diligence and SWOT analysis is a useful exercise. This is the starting point for your business. If you prepare your model honestly, this will help you to understand whether the more aspirational concepts of your model are likely to be practical.
As your business progresses, you will find out whether your objectives were achieved. From there you can plan the next stage. As you progress through each stage and business model, you come to learn what works and what doesn’t, or what might be changed to work better for your business.
The one thing you must never do, is to hold your business model to be the end game of running your business. It isn’t as it needs to be constantly reviewed for relativity. Herein lies the problem and probably the hardest thing to reconcile. In developing and working to your business plan, it becomes an emotional component of who you are because of your investment. If you can let go of the emotional bit however, by changing, it may help you develop the best business plan for your business.
This concludes the 9th key factor; business model. After a short break we will review the last key factor of our feature, legally putting your competitor out of business.