Refining Your Business Model
Behind every good business is a strong business model. And behind every strong business model is constant reviewing, revising, updating, testing and more revising. If you’re consistently revisiting your business plan and making small tweaks, you’re doing the right thing. If you haven’t reviewed it in quite some time, it’s time to plan for an overhaul. Here’s where to start.
What Is A Business Model?
The most basic definition of a business model is a plan or strategy for how a company will make a profit and be successful. What goes into a business model and what it looks like is a little more nuanced. Depending on your type of business and its specific goals, your business model may identify and include things like:
- Product or service: What are you selling that will make the company money?
- Sales process: How will you sell the product or service?
- Target audience: Who are you selling this product or service to?
- Marketing plan: How will you reach your target audience?
- Pricing strategy: How much will the product or service cost?
- Recruiting strategy: How will you recruit the right people to sell?
- Building culture: How will you run your business to retain your team members?
- Business resources: What do you need to run your business?
- Business partners: Who do you need to help your business deliver?
The way companies deliver this model varies by company as well. For example, the business model might be presented in a table, flow chart, 100-page document or two-slide PowerPoint presentation.
A business model is a must-have for any start-up business and a must-revisit-and-refine for any established business. That’s right – business models are always evolving, and it’s extremely important to update and refine yours regularly. If you don’t, you could miss opportunities or, worse, encounter a future problem completely unprepared.
Refining Your Business Model
When you review and refine your business model, you keep your business current with the ever-changing world and the new challenges it presents that may not have even existed when you first created your model. As you review your plan and find ways to tweak it, consider the following:
National And World Events And Their Impact
How have COVID-19 and other current events impacted your business? Is the product or service you’re offering relevant today or in this climate? Is there something better you can offer? Are you taking advantage of the many tools and resources that QLMS offers its partners?
The Client And Their Experience
Has your target audience changed? Do they have different needs or goals? Are you using technology, like hybrid e-closings, that’s popular right now? Is there a new generation of clients? Are clients happy with the sales process? Are there any obstacles that are preventing the sale from closing? Talk to your team members who work with clients daily. Talk to your clients, read reviews from third-party sites and peruse the comment sections of your social media posts to get an idea of what your clients are experiencing.
Your Marketing Plan
Are your marketing efforts still successful? Have they plateaued? If your audience has changed, has the way they get their information changed as well? Are you retargeting past clients? Do your marketing materials need an update? If you’re a partner with QLMS, don’t forget to check out the Marketing Hub for free, customizable marketing materials,
Do you have great team members leaving the company at a record-breaking speed, or are new recruits constantly flocking to your company? Try surveying team members to get a better read on the group’s morale. Encourage team members to offer suggestions and ideas on how to make their jobs easier and the culture even better. Talk to your HR representative to see if there are common complaints and reasons why people leave. Make sure you establish a culture and have regular discussions and check-ins with team members about the importance of shared philosophies. For more tips on developing culture, check out our article.
Testing Your New Model
While you can tweak your business model based on data and feedback from team members and clients, much of it is still based on assumptions. Your changes may work and they may not, which is why you should regularly revisit your plan. To avoid having to go back to the drawing board completely after launching the new model, run it through a test group or have an expert in the industry or a mentor review it. If you partner with us, run it by your Account Executive and get their opinion. Our AEs are always here to help bounce ideas around and offer assistance in helping you grow your business.