The How of Business - How to start, run & grow a small business.

532: Is Your Business Model Broken?

Aug 5, 2024

Is your business model up to par? Explore the critical differences between a business idea and a business model. Discover the importance of scalability and how it impacts growth while preventing bottlenecks. Dive into tactics for competing against larger rivals and learn why merely competing on price isn't sustainable. Lastly, get tips on reassessing and reinventing your business model to ensure continued profitability and efficiency. It's a deep dive into making your business not just survive, but thrive!

20:50

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Quick takeaways

A viable business model must ensure consistent profitability while allowing for scalability and adaptability in a competitive landscape.

Understanding the distinction between a business idea and a business model is essential for successfully executing strategies that lead to sustainable growth.

Deep dives

Understanding a Business Model

A business model is a crucial framework that encompasses the strategies and tactics a small business employs to generate consistent profit. It involves evaluating how value is created, delivered, and captured, ensuring that the profit margins are sufficient to justify the effort and risk involved in operating the business. Components such as value proposition, customer segments, revenue streams, key resources, and cost structures all play a role in defining a viable business model, which should not only support profitability but also allow for growth and scalability. For instance, a solopreneur trading time for money may find their model unsustainable, as their income potential is capped by the number of hours they can work.

Intro

10min

The Necessity of Scalability in Business Growth

3min

Navigating Competition and Assessing Business Viability

6min

Reassessing and Reinventing Your Business Model

2min

Is Your Small Business Model Broken?

Show Notes Page: https://www.thehowofbusiness.com/532-broken-business-model/

Is your small business model broken? How can you tell, and how do you fix it? And what do I mean by a Business Model?

The Business Idea is WHAT you do, and the Business Model is HOW you do it. And how you do it must result in profits and the ability to scale.

A strong and healthy business model supports a small business that is consistently profitable and that can scale.

How do you know if I have a strong or viable Business Model? Ask yourself these three questions (whether you are starting a business or running an existing business): Are you making a profit? Can you scale? Can you compete?

On this episode Henry Lopez helps you determine if you have a solid business model, whether you are starting your first business or already have an established small business.

This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run and grow your small business. The How of Business is a top-rated podcast for small business and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com

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