During normal conditions, not many business owners are willing to give enough considerations to their existing business model. However, we should know that bad business model could send our company to an early grave. This is the same with the death of our business. We could get so caught up with the inner working of our business that we forget about the overall effects of bad business model. Here are signs of bad business model:
- Non sustainable: If our business model is unable to sustain our business for long, then it is flawed. Non sustainable business model will cause us to work harder and harder. This will cause us to burn ourselves out. Flawed business model can be identified by the limited time span.
- Non scalable: If our business model is flawed, it may not be able to scale up properly. It means that our business may not be able to grow beyond a certain size. This will result in stunted growth and long-term stagnation.
- Limited profitability: This should speak for itself and a business model that causes limited profitability is definitely not a good thing. Wrong business model could cause us to suffer from acute lack of profit and everyone in the company will struggle to make ends meet.
- Stress-prone arrangement: Bad business model could cause endless stress and this is usually caused by flawed business model. It may cause to make various bad decisions.
If our company is suffering from flawed business model, there are a number of key areas that we need to work on. First, we should make sure that we have the proper income sources and it’s essential in any form of business. In many cases, our business is tied to specific groups of people. As an example, if we are sick; there’s no guarantee that our company will be able to maintain good operational capability. We should distribute our specialized knowledge and expertise to a number of trusted individuals. So, if any of these key personnel are unavailable, others can take the place. A good business model also ensures that availability of recurring income streams. The income could be paid on an ongoing-basis by our clients. We should make sure that our clients will be able to pay us for specific period of time.
Our business model should also include proper marketing systems. It should focus on searching for new clients in the market. Search for new clients should be relentless and never ending. Lack of clients could prevent our business from growing further and this is not a good thing. We many need to pump more money into the marketing and advertising campaigns. The challenge is to determine where our focus should be directed. When checking our business model, we should know where our focus right now. The business model should include a projection on when we should get a specific number of clients. This is necessary to ensure that our company will last for a long time. We also won’t struggle to keep our business afloat.