What to Do When the Business Model Seems Broken?

I love plants. I grew up in a house filled with them, but I always believed I didn't have the coveted green thumb. It took me some time before I started getting plants for my home. After doing my research, I chose the most resilient ones. Rubber plants, while beautiful, remained a distant admiration. My plants and I shared good times, but then I noticed their leaves wilting. My heart broke, but I soon learned this was a normal process of life—evolution.

This got me thinking about the evolution of business. What should you do when a business model is broken? How do you recognize and accept that it’s the model, not just external factors, that’s flawed? As a value-focused accountant, I always see the hemorrhage of money as a major sign that something could be wrong with the foundation. I encourage founders to dissect their business piece by piece. Like in my plant care journey, going back to the basics helps sanitize each building block.

This is easier said than done. The thrill of a potential sale, or even an actual one, and winning over competition, can blind us to the essential parts that ensure long-term viability. When a business model is broken, it's crucial to take a step back, assess the situation, and explore new opportunities. Go further and consider the opportunity costs. Often, the issue isn't a lack of opportunities but the failure to align all the pieces that make an opportunity a business.

Avoid seeking advice from people who admire or love you blindly, or those who see you as a rich aunt or uncle. Get real advisors who will tell you the hard truth. This will truly help you achieve your rich aunt or uncle status.

Let’s go out and build viable businesses, real wealth, and true riches.

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