Executive Focus: Build a Business Model for Better Growth
If your company’s goal is profitable, multichannel growth, business modeling can offer you a clear strategy to achieve that goal. Simply put, a business model defines how your company generates revenue, and describes how your pricing, service and channel strategies work together.
The process of detailing revenue sources, customer relationships and organizational structure identifies opportunities and challenges. This reveals the correct behaviors that should be your company’s focus. A unique, sustainable and hard-to-copy model will begin to take shape as you continue this process.
Identifying your company’s current components is the first step to creating your optimal business model. Begin by answering the following questions:
1. Who are your customers? Long-term partnerships begin with compatibility. Do your current customers match your strategy?
2. How do your revenue sources rank? Has there been a shift in channels, product lines or services? It’s common for the primary revenue source to change with time.
3. What’s your customer satisfaction level? Is it trending up or down? Knowing why your customers are happy or unhappy will allow you to sustain or alter your behavior to maintain or increase customer satisfaction.
4. How is your business structured? Are your channels siloed, or have you developed a multichannel strategy? Figure out how your business structure affects service and productivity.
5. What differentiates you from your competition? Do those differences enhance your customers’ experiences with your company or detract from it? Why do your customers choose to do business with you?
Your answers undoubtedly will lead to more questions, but also to improvements. And this preliminary business model will give you a better understanding of what works and what doesn’t in your company. It’ll jump-start the change your organization requires to be a long-term market leader.
Contact Ellis at (828) 626-3756 or via her Web site: http://www.wilsonellisconsulting.com.