For any business, the objective is to scale up which means to be profitable, expand geographically, strategically move up to acquire more customers, have more reach, and add more and more value!
But scalability can happen only when the Business Model has the potential for that scale.
There’s a direct dependency on your business model in order to be profitable in your business. Because if a business model is not scalable, no matter how much marketing you do, it’ll not help you to generate as many customers, no matter how much operational efforts you put, you won’t be able to duplicate the kind of quality and scale of operations that you want to because your business model does not allow you to do that.
But most people get it wrong. They think it is enough to have a good business idea in order to successfully set up and continue a business.
But firstly, what is a business model?
It is the integration of your customers, your products and services, and the money you make out of those products and services. So, keep these three aspects in mind: find your perfect target audience, have products and services that fulfill their needs and desires, that they add value and make sure they are willing to pay for your products and services and that you are making money at a transactional level as well as on a long term level for the business to grow.
Getting this equation right is extremely important.
With markets and times changing, one crucial thing is to remember that building a business model is not a one-time thing. It must be evolving. With changing customers, trends, life, their needs will change and your products and services will also need to change accordingly.
When I started Quantum Leap, with my patterns Rajiv and Pranav, way back in 2008, we were into Corporate Training and even though we were confident about our services and focusing on the needs of our customers, the financial transaction, the amount of profitability we wanted to make was not up to the mark. It wasn’t helping us to achieve what we wanted.
From being a high-value game, ours slowly became a high volume game which was difficult to sustain. Our business model at that time was not allowing us to make the kind of profits we wanted to. Soon we found ourselves in debt.
That’s when we decided to change. We decided to change our customer segment and make our products and services adaptable to this new target audience. We worked on a completely different business model and changed from a B2B to a B2C model, working with entrepreneurs and business owners in a seminar and coaching format. Once that credibility was established and the value was realized by the right people, we started growing again! Today, we’re in a system where we hand-hold thousands of business owners across 7 countries!
Hence, the lesson is that you need to constantly keep an eye on your business model. Once you are clear about the fulcrum on which your business is balancing on, you can easily steer it to whichever business you want to.
Read More: Business Operations Let’s have a Conversation!
For more tangible steps to build and scale up your business, sign up for one of Karan Hasija, one of Asia’s leading business coach’s practical and informative workshops and seminars that teach you all that you need to know to build a successful business model.
