- They believe they can provide an existing product or service better than the companies currently in the market (or who they currently work for). There is an opportunity to be able to do it better or differently.
- Others are given an opportunity to work for a client if they go out on their own, often at a lower product or service price point.
- Others start in business because they see a market gap which can be filled by a new product or service. The opportunity exists because they are offering a new product or service presumed to address an unresolved problem, satisfy an unmet want or need in a market that has significant growth potential.
- Others see an opportunity because of an existing product or service not being available in a particular market segment.
There is no doubt SME owners genuinely believe there is a market opportunity when they start in business. Unfortunately for some that opportunity is never realized because of incorrect assumptions.
So where are you 10 years on? Has the markets changed, have the people changed, its fairly safe to assume pretty much everything has changes around you so you need to ask yourself does your market opportunity still exist?
These questions are why I firmly believe every business needs to review their business model to determine what opportunity still exists.
Let’s now look at my definition of business which is, “to solve a person’s problem, satisfy a want or need at a profit?
I think this provides some important points when conducting your business model review. Ask yourself the following questions;
- What is your target market segment?
- What does your ideal customer look like?
- What are the problems, wants or needs of these customers?
- Does your product and or service solve your ideal customer’s problems, or satisfy their wants or needs?
- Can you do it at a profit?
- Are the margins sufficient to make a profit?
- Is the market big enough, is it growing or shrinking?
- Do you and can you do it better than the competitors?
- Do you have any new products or services where there is a clear unmet demand?
- Can you do it cheaper and still make a profit?
- Are there additional products or services you can sell to your customers?
The fundamental question is-is the opportunity their now in your business to provide growth in revenue and profitability? If so, what do you have to focus on to ensure success?
And if not you need to consider conducting a review of your business model.
If you need assistance, Simply Business can conduct a half day workshop to review your business model and to develop key recommendations to once again focus your business opportunity.
To discuss this further please contact me at;