Business Assessment Report
If your score falls into this range. You have a good business model that has a high probability of success.
Our advice is to focus on systemising your business. To be able to turn it into an asset which you can franchise, sell or leave to others so you can focus on another business or hobby.
If your score falls into this range. You have a good business model but it could do with some adjustments.
Look at your scores and any that fall under 6, need to be pushed to a seven or higher.
1. Switching Costs – can you make it difficult for your customers to leave you for your competition. For example, mobile contracts tie you in for 18 months. Or will they lose access to something your competitors don’t have?
2. Recurring Revenues – is a powerful method of generating predictable income. Can you upsell anything like maintenance or membership? Instead of selling as a one-off price, can you sell it as monthly payments?
3. Earning vs. Spending – Can you find a way to pay after your customer have paid you? Like making an agreement with your supplier or taking a bigger deposit from your cusotmers? This will ease your cashflow.
4. Game-changing Cost Structure – smaller new businesses generally have lower expenses then bigger companies. Keep this low wherever you can.. You can either reinvest your extra profit or lower your prices slightly.
5. Others Who Do the Work – if you’re doing everything yourself. You’ll find it difficult to grow your business. Your business will always rely on you. Find a way to by working with partners or automating your work so it doesn’t rely on you.
6. Scalability – do resources or tools limit how big your business can grow? If you provide services for example, this will limit your growth. Try and automate or work with partnerships to leverage their resources.
7. Protection from Competition – can your competition easily copy your idea? Or can they lower costs and still match your quality? Find ways to make your business hard to replicate and still provide value that people want.
Below 50% Score
If your score falls into this range. You might need to reconsider another business idea or model.
Businesses that fall below than 50% have a low probability of succeeding because of weaknesses in several areas. Which will halt growth, the competition will be difficult to beat and it will rely on you.
If you can’t raise every score to above 6 or 7. Then it is best to think of another idea.
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