Tuesday, April 12, 2011
Building a Sustainable Business Model (Thoughts of an Entrepreneurial R.E.B.E.L. Vol. 23)
Many entrepreneurs experience a season of success and then crash super hard when there is a downturn. Risks come with being in business for yourself, but there are ways to mitigate falling prey to them. If you know the business that you are in then there are virtually no risks. Knowing is 90% of the battle. So what type of stuff do you need to know? Well, the most important is if there is even a market for your offering. If there is a market, is there a possibility to make you customers lifetime buyers. Don't get into the mindset of just trying to make a big expensive buck once. It is much better to have a lifetime of small bucks trickling in every month or so. Though you are an entrepreneur, you must think in term of systems. Casting caution and planning to the wind will cost you dearly. The more expensive your product or service is, the more you should narrow down how you are going to bring in income. I reiterate, the most important thing is to think in terms of residual income. Instead of just selling one magazine, you should be trying to sell a subscription. Instead of just trying to sell a weight lifting set, you should be trying to get your customer to purchase a gym membership. Now I am not recommending that you sell your customer something that they don't need (your offering must always be value driven and authentically meet the need of the customer), but I am recommending that you find a way to secure recurring income while keeping your customer overly satisfied in the process.