For all your online business building info! , 2020-06-01 00:34:02
Tweak your Business Model to Increase Profits
To keep your business fresh and moving forward you need to review your business models at least once a year. There are a lot of changes in business each year, such as new customers, new products or services and even the price of the products will probably have changed. You need to analyze all changes and determine whether there are changes made that made the business more competitive and which changes held the business back, in terms of time and money.
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You should also need to look at your marketing campaigns, because a marketing campaign can cost a large portion of a company’s budget. Last years allocation of funds for a marketing campaign maybe to much or not enough for next year’s campaign. If your competition has changed, maybe you need target your campaign on a different group. If your marketing campaign is changes then maybe you need to change your business model.
The use of new technology can also change your business and thus your business model should stay current with these changes. Maybe your customers use new technology and become less depended on your service or company. You most likely need to lower the price of the service. But technology can also improve your company’s service, so maybe you need to ask more money for the service.
The numbers of employees that you need, will most likely fluctuate as your business is changing. Sometimes you need to fire someone and other times you need more people. Hopefully it is the latter, because this means your business is growing. But growing also means that you need to spend more money (more employees, larger office, more equipment, etc.) So you need to look for ways to reduce the costs, which means most likely that you need to change your business model. You also need to go to your business financial statement;
- where can you reduce costs
- what where the biggest expenses
- where did the money came from last year
- what products made a large profit and which did not
As you can see, everything is connected, so you need to tweak and review all the time.
After a complete review (from all the things that is described above) you need to think about;
- Should I stop selling a product?
- Should I focus on products that are selling well?
- Should I expand or decrease a service?
- Do I introduce new products?
- Need I more employees or less?
- Is there a need to invest in more technology?
- Do I need a new marketing campaign?
The answer to all these questions will change the way you do (online) business, thus changing your business model and systems!
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