One of the great considerations Florida entrepreneurs and business owners need to contemplate is how to keep their business evolving with the changing needs of customers. This is referred to as business model innovation. No matter what the history of your business has been, your current business model may be growing obsolete. A business model is the process or system used to create profits. How can you tell if your business model is functioning well? One simple indicator is that your sales and profits will be steadily increasing. If they are leveling off or becoming unpredictable, or, even worse, if they are declining, then it’s time to to re-evaluate your business model.
There are two key aspects of your Florida business model. The first is your product or service, which is called a customer value offering (CVO). What is the value your product or service offers your customers, and do you need to evolve or replace your offerings? Begin by asking what problem does your product or service solve for a customer that the customer is willing to pay for? It is astonishing how many entrepreneurs develop products and services to solve problems that customers don’t agree that they have, or are unwilling to pay for. This is why, even with the best research, marketing and product development, 80 percent of new products fail every year (Harvard Business Review). In order to evolve your Florida business, it’s very important that you become very clear about the problems customers really have and then find a way to solve that problem better, or more efficiently than anyone else. This CVO then, becomes the core of your business.
The second aspect of evolving your business model is to focus on the customer. Who exactly is your ideal customer, your perfect customer? Who, more than anyone else, will buy your product or service immediately? What is their age, education, background? What are their goals, hopes and dreams? What role does your product or service play in their lives? What difference will your product or service make in their life if they use it or not? Florida businesses should create a Buyer Persona and Prospect Scorecard to help evaluate a better understanding of who your customers are, and who your ideal prospects should be.
The best way to evolve your Florida business model is to scan and survey the Florida landscape in which your customers abide. What is it that your customers want, need and are willing to pay for that no one else is providing? Is there a sufficiently large market for prospects, and are they seeking the same CVO? How can you fill in their gaps, and provide these missing products or services at a competitive price and acceptable level of excellence? If you can determine this, then you can stay on the cutting edge of your Florida industry, remaining ahead of the competition, and optimizing the likelihood of future growth and profits. And to best protect your business, contact Lanier Upshaw to learn more about innovative solutions that address your Florida business risk.