Wanda Halpert: President, Concord Business Plans
To be successful, entrepreneurs need to be flexible to adapt to an ever-evolving marketplace that is constantly being influenced and transformed.
Your business, large or small, must adapt to continue on the climb to the top. Examples of transformations to business models include:
- Amazon.com, a company that forever altered the retail book market
- Facebook, which made connecting and influencing customers easier and more cost effective
- Uber transformed the taxi and sharing economy
- Airbnb changed accommodations forever
Understanding key performance measurements to evaluate your business model can help you to keep your company at the leading edge of sales and customer retention. Ten important things to consider are:
- Changing styles or trends in your product or service industry. Are you up to date?
- Differentiation factors. Define what makes your product or service unique.
- Evolving technology. Are you online? Are you on social media? Does it need updating? If you are a technology company, have you adapted to recent changes?
- Examining the competition. Who is positioned ahead of you? How did they get there? What can you learn and adopt from the industry leaders in your sector?
- Shifting target markets locally or globally. Look at emerging markets for expansion opportunities.
- Increased costs of doing business. Find ways to lower costs without lowering the quality.
- Online shopping. Can you sell products or at least market your business online?
- Human capital. How good are the talents of your workforce, and how do they treat people?
- Generating leads. How do you attract customers? How do you keep them? What are your sales funnels?
- Customer capital. Maintaining a positive reputation and good relationships over the long term is the best way to retain customers. Offer at least three ways you can accomplish this task.