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Expand Your Business Model Changing your Business Model A change in your business model can bring substantially more income—sometimes for less work and lower overhead costs. Explore other business models that complement your existing business and see where it takes you. For example:
Sell un-used capacity
– A manufacturing company might provide contract production for other businesses, helping to fill capacity, increase profitability and offer leverage to get better buying prices due to increased volume. – A producer of food or beauty goods might offer the same product under different brands (for instance, a premium brand and a house brand) and let other distributors sell them to the market. – Someone who owns a retail or office space might rent out part of their facilities to others.
Go to the market
Instead of waiting for customers to come to you, can you take your business to them? – A coffee shop might buy a mobile coffee cart, allowing 16
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them to take their service to meetings and events. – A bakery might start charging a small fee to download unique recipes from their website to generate passive income.
Offer pre-paid services
– A service provider might introduce fixed-rate service agreements rather than charging fees by the hour. A fixed-rate business model aims for predictable cash flow in advance. Customers paying by direct debit eliminates invoicing costs and debt collection issues. – An accounting firm offering accounting services at a fixed fee per month, regardless of the activity level. Or an IT business might offer 24-hour help desk service for a monthly fee. This provides a reliable revenue stream, regardless of whether the service is used or not.
All industries are different and your business may require special legal or licensing considerations. Consult an attorney, your city or county business licensing office or a financial advisor to discuss your options and next steps. Banking Business a publication of Heritage Bank
