Scaling Your Business in 2021
"If you genuinely care about the goal,
you'll focus on the system."
-James Clear
(Reading time 8 minutes)
To say the least, 2020 was a year of unexpected challenge for small business.
In just a matter of weeks the economy took a nose-dive from growth & prosperity into a crippling economic tsunami.
It's been & continues to be a daunting obstacle for small businesses to overcome.
It poses a number of problems for owners, not only to survive, but moreover thrive, in 2021 and beyond.
So how can you as an owner of a small business successfully respond to the to this continuing economic storm?
"Don't let what you cannot do, intefere with what you can do."
-John Wooden
Options
Fortunately, you have a number of viable options to transform these problems into opportunities. 2021 can be a year of not only recovery, but moreover, a year of growth, profitablity & prosperity for your business.
Asking, answering & applying the following three questions will empower you to move forward and achieve the progress you want to make over the next 6 to 12 months, as well as your long term objectives.
1 - What's your business model?
2 - What's your objective...growth or scale?
3 - What are the key building blocks of your business model?
What's Your Business Model?
Nailing down the specifics of your business model defines where you've come from, where you are at present, and where you want to go in the future.
It expands your awareness of actions that will move you forward and achieve the progress you want to make in the near and long term.
It defines how you will "play to win" in your chosen market & industry.
What's Your Objective: Growth or Scale?
Defining your objective in moving your business forward is essential. Although growth and scale appear to be the same in a general sense, it is critical to specify the difference between the two concepts.
What is growth?
What is scale?
Between the two, which is your objective?
What are the Key Building Blocks of Your Business Model?
Customer Segments:
For whom are we creating value?
Who are our most important customers?
Value Propositions:
What value do we deliver to the customer?
Which one of our customer's problems are we helping to solve?
Which customer needs are we satisfying?
What products and services are we offering to each Customer Segment?
Channels:
Through which Channels do our Customer Segments want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost effective?
How are we integrating them with customer routines?
Customer Relationships:
What type of relationship does each of our Customer Segments expect us to establish and maintain with them?
Which ones have we established?
How costly are they?
How are they integrated with the rest of our business model?
Revenue Streams:
For what value are our customers really willing to pay?
For what do they currently pay?
How would they prefer to pay?
How much does each revenue stream contribute to overall revenues?
Key Resources:
What key resources do our value propositions require?
Our distribution channels?
Our customer relationships?
Revenue streams?
Key Activities:
What key activities do our value propositions require?
Our distribution channels?
Customer relationships?
Revenue streams?
Key Partnerships:
Who are our key partners?
Who are our key suppliers?
Which key resources are we acquiring from partners?
Which key activities do partners perform?
Cost Structure:
What are the most important costs inherent in our business model?
Which key resources are most expensive?
Which key activities are most expensive?
(Adapted from Business Model Generation by Alexander Osterwalder & Yves Pigneur)
Conclusion
At first glance this process may look overwhelming. However, by taking consistent small steps you will save time, simplify & access the information needed to develop and implement a "winning strategy" for growing/scaling your business.
Upcoming Posts
We will break down the above suggestions into small, simple steps that can be accomplished in a timely manner and empower you to move forward on a consistent daily basis.
Tune in & learn how to implement "Small Steps Systems"
"Your Prosperity is Our Priority"
