Looking for Signs that Your Business Model Is Weakening
In This Chapter
Spotting the signs your business model may be weakening
Painting a target on yourself by generating superior margins
Persisting through the hard times may be a bad idea
Trying easy instead of trying hard
By nature, business is competitive. Like a boxer, your competition weakens you as the fight goes on. Sometimes it’s tough to know when your weakened state is reasonable and when it’s not.
In this chapter, I show you how to recognize when the competitive fight is getting the best of your business model and when the cause is business execution. I discuss four of the most common signs that your business model may be losing its effectiveness: decreasing margins, prolonged minimal profitability, persistent flat sales, and a general dissatisfaction with your business. More importantly, I show you how to spot these trends and offer suggestions on how to best fix them.
I can’t emphasize this point enough; great business models have superior margin. You should gauge your margin two ways. ...