Adjusting Your Business Model

Some coaching I was doing with a small business owner the other day reminded me of how much friction there is in a business model. Depending on how big you want to get as a business, and how fast you want to grow, you need to consider the things that slow down your processes or things that speed them up.

As an example, let's say we want to be a global leader in accounting for creative agencies by the end of the year 2018. That's a pretty big goal since we only serve in the US right now. To expand to international markets would take a lot of infrastructure and team training to propel us to the world by the end of 2018. One thing to consider about this goal is our pricing structure. We value price. Value pricing is notoriously slow, and creates a huge amount of friction in our processes. What causes friction? Humans!

Value pricing requires huge amounts of up front discovery with the business owners you are planning to serve. The more complicated the client, and the larger they are, the more friction and up front discovery you have to perform. So how could we become the global leader by 2018? We would have to adjust our business model.

In this example, adjusting our business model requires that we price in a different way that reduces the friction in our pricing process. A pricing move from value pricing (where every price is different for every client) to fixed pricing (where every client pays the same price) would really change the speed that we could bring on new customers. With fixed pricing, clients can even price themselves through a smart form on your website. By lowering the friction in our pricing, we could focus on other areas like visiting the international locations we would want to setup, or training our team to work globally.

Do you need help with your pricing? We do that! Please let us know in the comments how we can help you with your pricing, or send us an email to [email protected] so we can help to transform your business model.