The thing about running a business is that there’s always a new thing to learn (and unlearn). As we approach the end of the year 2020, can you confidently say that your business model fits the situation? Will your business survive what is going to happen over the next months and years in the economy? What does it mean for you and your business that we are now in the recession?
To find out, let’s take a look at this list of certain factors that will potentially impact your business:
1. Purchase decision
4. Financial interest
As we are in a recession, these factors have shifted because of the differing circumstances that people have experienced. Knowing this, you have to make adjustments to your business model if necessary. Based on what’s been happening to the economy as a whole, it is HIGHLY necessary.
Can you still offer the same products and services that you are offering now?
People have been reevaluating their lifestyles during this recession. It is important to understand how this will affect you and your business now and in the long run. Take advantage of this to tailor your own services and programs accordingly.
It is crucial to assess your capability and how you can modify it to serve them better, which will then generate revenue. Consider which among your products you are satisfied with and want to take forward in the future, and then work towards adaptability. As you do so, envision how you want your business to be.
Can you still charge the same prices as you are charging now?
This is not an invitation for you to slash your prices. Instead, it’s an invitation for you to examine your value and your price linkage.
This is an exercise to help you in reviewing your prices:
1. Look at your current price point for the products or services you wish to retain.
2. Write down everything you can include for that price point; these may be factors that you have previously tucked-in before.
3. Double that price.
4. Consider everything you can to add value to justify your new price.
5. Double that price again.
6. Repeat Step 4. This is your final value.
7. Determine if you can deliver the final value for that of the price in Step 3.
In doing this, you will be offering massive value, still charging more than you perhaps were before, but at a reasonable price.
Can you still serve the same audience as you are now?
Changing your services, programs, and price point might also change your audience. Higher unemployment and business failures are unfortunately common during these times. One thing that we know from the recession is that people are even more focused on value than they may have been before.
Assessing whether or not your audience will still be around and will still be able to buy from you during this period and beyond is incredibly important as you are building up your business model structure.
If you are unable to serve the same audience, then you need to consider how you are going to reach a new audience and how you are going to be able to serve them best. Anticipating this and knowing how to tweak your pricing point will lead you to a great financially healthy business even during a recession.
What do you want your business to look like once this crisis is over?
Ask yourself how you want to do your business. Whether you want to do it alone or with a team will influence your business model structure. This will help you in really understanding how this is all going to fit into the life that you want to live and making it work for you.
Think carefully and reevaluate what you might want to be doing to make sure that your business model is now fit for purpose for the new situation that we are in.
Whichever side of the equation you are on, there is no right or wrong answer. It is whatever works for you that is the most important.
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