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Hattie explains us the importance of defining your business model to earn profits
Tags:How to Define Your Business Model,business model,business strategy,business tips,hattie bryant,small business advice,small business school
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This is an excerpt from Small Business School.
Hattie: Are you retail? Wholesale? Manufacturing, distribution, a sales organization?
In the middle of the internet revolution, all business models have been shattered. Connectivity has put more power into the hands of customers. How will you make a profit going forward? How will you position yourself in the marketplace?
John: Cloud Nine was completely unlike you know any other shuttle company. What we envisioned when we created the name was to do something bold and different big radically different than on a competition.
Hattie: John Hawkins took a failing shared ride company, and turned it around because he could see that growth would not come from catering to tourists but to repeat riders.
John: If we change the strategy from a visitor only based focus to a residential based focus this effort makes a close to downtown. The visitor fare is roughly five dollars to go down town or back to the airport, short distance short fare. The residential market living suburbs around the city and they on in turn an average of $15.00 a fare also.
Hattie: And repeat business.
John: And repeat business which is truly the smart thing.
Eric: Were walking through the breakfast room into the dining room.
Hattie: Eric Rose of E.M. Rose Builders has a special niche in the construction industry. He only builds a smart homes designed by architects.
Eric Rose: Good morning.
Hattie: Chif Chrishnan’s firm, Indus web enables existing data for primarily government agencies. Bryan Jacobson and Glen Bailey make money being the back shop for specialty designers. Pamela Rogers admits that her profits come servicing the car she sells. O’ Peachy Wine Group makes margins rise through global sourcing and diversified chemicals wins customers through innovation.