Business Model Strategies: How to Create Value, Compete Better, and Boost Revenue
A business model defines how your company operates, creates value, and makes money. By understanding and refining your business model, you can unlock greater revenue potential and differentiate yourself from competitors. Let’s break it down in simple terms:
What is a Business Model?
At its core, a business model answers three critical questions:
- What value are you selling?
Notice this doesn’t ask, “What product or service are you selling?” Instead, focus on the problem you solve. Are you providing peace of mind (insurance or financial products)? Saving time with faster solutions (technology)? Offering exceptional customer experiences (Disney or Ritz Carlton)? The key is to identify your unique value. - How will you sell it?
This includes making customers aware of your offerings, delivering your product or service, and ensuring excellent support after the sale. - What profit will you make?
Your profit depends on the difference between revenue streams and cost structure. Are you selling a product, charging a subscription fee, renting an asset, or licensing intellectual property? Would additional revenue streams benefit your business?
Why it Matters
Each business operates differently, and your model should highlight how you stand out. Many new business owners mistakenly compete on price alone, but planning your business model reveals many other ways to compete—like superior service, unique value propositions, or innovative delivery methods.
At Aligned CPA, we guide business owners through their business models as part of strategic planning. This exercise helps identify opportunities, address challenges, and understand how your business can succeed in a crowded marketplace.
When to Evaluate
Here are a few scenarios where refining your business model can drive growth:
- Launching a new product or service.
- Facing increased competition.
- Addressing customer concerns or feedback.
- Exploring new revenue streams.
Need Help Refining?
We work closely with clients to align their business models with their goals, providing actionable insights and tailored strategies. Want to learn more? Email us at Admin@AlignedCPA.com or Schedule a consultation today.
What’s Next?
Our next segment will dive deeper into value propositions and why defining yours is critical to your business’s success.