Three Things You Need to Know about Creating a Winning Business Model
By Carla Haddad
The COVID-19 pandemic has accelerated digital transformation. Many business owners did not have enough time or knowledge to adapt by changing their business model, while digital giants were able to quickly do so.
What will Happen Once the Pandemic Ends?
It is no surprise that almost every business owner in the world is currently asking a similar question. In finding the answer, owners need to develop a market-focused business model to deal with the fast-paced changes they are faced with. The main consideration needs to be that conventional strategic thinking will no longer serve you in the “new normal.”
How Do I Win?
According to Jonathan Byrnes and John Wass, coauthors of the forthcoming book, Choose Your Customer: How to Compete Against the Digital Giants and Thrive, “in order to succeed, you need to get two things right: You have to target a defensible market segment, and you have to create a business model that enables you to win against competitors who are going after your target segment.”
To create a winning business model, owners must answer three questions:
- How does my business make money?
Take the time to consider and map out how information, and goods and services flow from you and your suppliers to your consumers – and ultimately how that generates money. Understanding the relationships that make up your business is the foundation in making the necessary changes to your business model.
- Who do I depend on to drive my business?
Consider your stakeholders. Have their needs and behaviours changed? How has the pandemic impacted them? This will help you to understand how their behaviours should be reflected in your business model.
- How can I adapt to changing customer behaviours after the pandemic?
This may be a more complicated question to answer. Talk to your customers — involving them in this process is a great way to make them feel that they are a valuable part of your business and to ensure that the changes you make address their needs. It is safe to say that there will be things that will return to normal, others that will come back with modifications, and some that simply will not return.
Markets are always changing, and your business model needs to be able to accommodate those changes. Your success correlates with your determination to constantly innovate and adjust to changes when they come. Ensuring your business is adaptable is critical during, and long after the pandemic has passed.
At BTA, we understand how uncertainty can affect a business, and we are here to help. You can reach us at email@example.com for more information.
We are business owners and advisors that offer consulting services to entrepreneurs. Working hands-on, we help develop and implement effective strategies that increase business value, growth and profitability, to prepare for the future.