Your Business Model Must Contain the “Right Stuff”
Many people who work in sales, marketing, or own small businesses are too busy generating income to worry about their long-term business model. Unfortunately, if you want a stable income and long-term success, the business model is a very important part of the equation. There are many aspects to a successful business model, but we want to highlight a few that should form the basis for building your business.
Look for the long term.
Yes, earning a living every day is important. But the nearsightedness we experience every day can in the long run lead us in the wrong direction. If so, we may be blinded by industry and market changes and miss a golden opportunity.
Have you prepared for the industry’s recent downturn? Are you ready for the next big change in the industry? There is no better example than the end of the housing boom. Undoubtedly, many investors, homeowners, real estate agents, and mortgage workers are completely taken aback. Many of these people will make different decisions and help their customers make different decisions when considering the long-term consequences of their actions.
The question you have to ask yourself is: where do you want your company to be in three, five, or ten years? How is it different today and what plans do you need to implement to make it happen? It’s about priorities. You need to identify the main actions you can take to achieve these long-term goals.
Invest in your business.
Your long-term business model must define what you need to achieve the success you want. In other words, what should you invest in money, time, and energy? Companies that lack money and human resources are sure to slow down.
It is important to note that we are talking about all aspects of investing. When they hear the term “investing,” they usually think of money. Yes, investing money is important. But if you invest money but not time or effort, the business is doomed to fail. Remember the last time you purchased a software program and then didn’t learn how to use it effectively? This is an example of how to invest money, but not time or energy. The money is wasted because you didn’t complete the investment.
Energy will not compensate for the lack of capital and vice versa. What should you invest in? Education, technology, marketing, etc. You may need to invest in an office, assistant, computer program, or training course to better serve your customers.
Choose the right supplier and partner with them.
Too often we choose our providers in such a way that we don’t want to be chosen as service providers. For example, we may not want our customers to pick us up at the lowest price. But we chose our suppliers because they had the lowest prices or because they took us for lunch.
We want suppliers who help us be successful.
First, we have to show loyalty to them. When things are busy and you need high priority service, will the provider give that priority to your customers? Do you deserve this priority?
Vendors need to help you succeed.
They not only offer excellent service for a great price, but they should also help you achieve your business model. This support may include developing new business resources or perhaps hiring sales or operations staff if you are an owner or manager. The provider will not increase the level of the partnership unless so
• You acknowledge that you need that level of relationship and the help you want.
• You will become their customer, which will be of great use to them because they help you. You need to know for sure that as you grow and develop, you will also benefit directly.
Long term view.
Invest in your business. Integration of suppliers as partners. We cannot imagine three important aspects of a long-term business model. What changes will you need to make to achieve this?