Article by Eric Purvis, Director of TAA Planning.eric

 

 

The broken business model

… and why business owners are trapped in it

I’ve met many a business owner with this one big problem, no matter what industry they’re in. The problem is low revenue, low profit and too much time spent working in your business. At least, that’s what a business owner will say the problem is.

But the real problem is that the business model is broken.

Smartphone with cracked display

What they want is increased revenue, increased profit and reduced time commitment. But what they actually need is a business model that works. Usually, the thing that is holding them back is a lack of knowledge.

They already have a strategy – but it’s a strategy that’s not serving the owner or the business well and its cost is time, frustration, stress and worry. The broken business model is characterized by:

  • No streamlined business systems
  • Less than optimal performance in one or multiple areas of operation
  • Stagnant profitability
  • No enjoyment from business ownership
  • Excessive, health-damaging hours directed at the business and yet it remains in stasis
  • Not enough time to work ON the business

What’s the solution? First, get informed. Get knowledgeable.

Seek information from the best independent and objective sources possible. You’ll need a team of trusted advisors like your solicitor, accountant, financial advisor, an insurance professional and maybe a business coach.

The next step is to take your business through three steps:

  1. Focus on improving profitability
  2. Work to build a strong management team
  3. Systematize the business’ operations

As you work on these three areas methodically, and with the support of your team of experts, you will begin to mend the broken business model you’ve been struggling with, and create a business with intrinsic value – not value that is all tied up in you, the owner. You will find yourself with a business model that is a beautiful thing to behold: functional, successful, and unbreakable.

What sort of business model do you have? The broken one – or the beautiful one?