Exemplary business models successfully thrive on three fundamental elements or qualities of development, which help them to achieve both short- and long-term success and growth. To avoid building on shifting sands, they must avoid steering into two potentially harmful elements that can have a bad effect on the overall sustainability of the business model. Here’s how you can avoid derailing your business model – and aim for an upward trend:

Acquire and Retain Valuable Clientele or Customers
This does not necessarily mean you engage in a campaign attracting top-level customers; rather, it means acquiring and retaining a customer base that shows the following qualities:

    • They are convenient to locate
    • They enable you to keep a high-profit margin on your products or services
    • They are curious and willing to give your products a shot, despite minimal marketing
    • They can enhance your business and meet your profit objectives

If you determine that your current customer base does not meet these criteria, you should strive to attract the right customers via partnerships and/or alliances.

Provide your Customers with High Value
Your aim should always be to provide high value to all your customers by incorporating the following:

Exclusivity when it comes to advantages of using your product – advanced features
Efficient and effective retail distribution
A complete set of customer solutions through partnerships and alliances
Competitive pricing as a result of efficiencies in manufacturing
Enhanced deliveries and a wider product range

Businesses today have incorporated exceptionally streamlined solutions to make their marketing and business strategies innovative and efficient. This means that you, too, have to develop and maintain a creative edge over your competitors.

High Margin Product Deliveries

The only way you can maintain a high margin is if you take steps to make your production process efficient or if you add unique benefits and features to your products, making them more desirable. You can successfully do this by:

Using a streamlined channel of product distribution
Minimizing the use of your sales support
Engaging in lean manufacturing processes
Offering your customers products with auxiliary components or opportunities, which do not cost you

Potential Red Flags

Providing Exceptional Customer Satisfaction
If you aren’t careful you may pay too much to maintain your customer support. Increased customer satisfaction costs can be created through:

Increased warranty expenses
A costly technical support unit
Costly installation requirement
Costly customer support

Expenses associated with customer support normally occur after the sale and are potentially harmful because the costs are usually high and have an adverse effect on your revenue.

Maintaining your Position in the Market

A well thought out business model uses its resources to enhance its market position, which includes adding newer products, unique features and attracting new customers. It can be difficult to hold your position if:

Only a handful of customers buy the most products
Bigger competitors have control of the distribution network
Technological trends lead to potentially costlier product development and R&D
Alternative technologies are available

These are some of the most important steps to consider when you talk about standing your ground.

If you have any questions or if you would like a free assessment for your company, please call us at 813-388-4935 ext. 1 or email at info@idealsp.com. Please visit our website at www.idealsp.com