How do you improve your profit? The power of business model development
Are you the managing director of a medium-sized company and wondering how you can increase your profits? Perhaps you've heard of "business model development", but you're not quite sure what it means and how it can help you drive your company forward. This article will take the mystery out of it and show you the way to more profit.
What is business model development?
Business model development is the strategic process of expanding and improving the business model. It is about optimizing current business practices, identifying new business opportunities and keeping the company flexible and adaptable to market changes.
It is an ongoing process that focuses on how a company creates, delivers and captures value. Business model development has the potential to increase your profits and give you a competitive advantage.
Why is business model development important?
In an increasingly complex and dynamic business world, it is no longer enough to simply conduct "business as usual". Companies that fail to evolve risk being overtaken by the competition or losing market share.
Business model development is therefore not a luxury, but a necessity for companies that want to survive in today's business world. It enables you to be innovative, stand out from the competition and ultimately increase your profits.
How do you start with business model development?
Before you start developing your business model, you need to understand what your current business model is. This may sound trivial, but it's an important step that many companies overlook.
A business model is basically a description of how your business works - how it creates value and delivers that value to its customers. Once you understand your current business model, you can begin to identify areas that can be improved and recognize new business opportunities.
Support with business model development: The MORGEN Academy
It is one thing to recognize the need for business model development and quite another to put it into practice. For many managing directors, it can be a challenge to start and carry out the process, especially if they have no previous experience. This is where professional support can make a big difference.
The MORGEN Academy offers precisely this support. As part of the MORGEN Consulting, a company that specializes in helping SMEs to develop and improve their business models, the Academy offers a range of training courses and workshops. These are specifically designed to provide you with the necessary tools and skills to successfully implement business model development in your own company.
The Academy relies on a peer-to-peer consulting approach. In the Academy, the managing directors always advise each other. This means that you always have access to numerous consultants in your working group with similar or the same challenges and problems. This gives you direct feedback from experienced entrepreneurs instead of endless loops with junior and senior consultants.
Business model development in practice: Where do you start?
There are many different approaches to developing your business model. Some companies focus on improving their current products or services, others on opening up new markets or developing completely new business areas.
There is no one "right" way - what works best for your business will depend on your specific situation and goals. However, here are some areas you might consider:
- Customer value: How can you create more value for your customers? This could mean improving your products or services, or it could mean finding new ways to meet your customers' needs.
- Supply chain optimization: Are there ways to make your supply chain more efficient? This could help reduce your costs and increase your profit margins.
- New business areas: Are there new areas of business you could explore? This could be a great way to generate additional revenue.
Create value and inspire customers with the MORGEN Criteria for modern business models
Our business models are aimed at delighting customers and increasing value. In accordance with the MORGEN Criteria - sustainability, digitalization, customer centricity and value orientation - we balance these elements to ensure long-term success. Despite occasional conflicts of interest, we work out the optimal combination that will lead your company successfully into the future.
The key to successful business model development: experimenting and learning
Business model development is an iterative process. You must be prepared to experiment, learn and make adjustments where necessary.
It is unlikely that you will develop the perfect business model on the first try. It may take several iterations and adjustments before you find a model that really works.
Conclusion: Business model development as a path to more profit
If you want to increase your profits, you should seriously consider business model development. It allows you to identify new business opportunities, optimize your current practices and adapt to changing market conditions.
It takes time and commitment, but the potential benefits - more profit, a stronger competitive edge and a future-proofed business - make the effort more than worth it.
It's not always easy to follow the path of business model development, but the results speak for themselves. As the saying goes? The journey is the destination. Your company - and your profits - will thank you for it.
Ten impulses for your business model
The impulse questions listed are an excellent starting point for exploring the potential of your business model development. We offer you a free 30-minute sparring session to help you evaluate and implement this potential. In this personal meeting, we will go through the questions with you and identify promising approaches for your company. Take this opportunity to raise your business model to a new level and increase your profits in the long term.
We facilitate the exchange of know-how and expertise between managing directors in a protected space and help with the right impulses to transform companies sustainably - and make them ready for MORGEN for the future.
Jonas Reuter
Further articles on the business model
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Efficient product development: the pragmatic path to market success
16.08.2023
Value creation in the digital age: realigning your business model
21.06.2023
20 reasons why SMEs need new business models
About us:
MORGEN is a specialized management consultancy that focuses on the development of new business models for medium-sized companies. In particular, it supports owner-managed companies in their future-proof transformation. Knowledge transfer is at the heart of its consulting activities, which is why the MORGEN Blog regularly publishes articles on key topics such as digitalization, transformation, customer centricity and sustainability.