Post by jholmberg
Your Company’s Future is Determined by Your Business Model
The Harvard Business Review featured a spotlight on business models – with good reason. The authors of the articles in the spotlight researched a variety of highly successful companies and found that these companies had something in common – they were all “well on their way to new business success [each time] their existing business started to stall”.
How did these companies manage to find themselves poised for new growth every time an existing market became saturated? They carefully planned a new business model that would mature in time to replace a predecessor.
- What is a business model?
The business model should tell a story that describes how your business works, encompassing the product you are selling and how it is being marketed and delivered.
- When is it time to invent a new business model?
The best time to begin inventing a new business model is while an existing model is still prosperous.
- How should a business model be designed?
A successful business model requires finding a consumer wish that is not yet being fulfilled. There is no shortage of unfulfilled consumer needs and wishes, but the challenge lies in finding which ones your business can create at a cost that is less than what the customer can afford to pay.
Remember, your company’s future is determined in your business model. When is the last time you looked at your business model?