Investigate what you need to change in your business and organisation so that you are ready for the future. For example, how are your production resources such as your machines and tools? Is your shop layout future-proof? Or are your means of transport due for replacement?
Opportunities
You are probably not the only providing your (type of) product or service. With a competitor analysis you research how other providers are doing in the market. You identify each competitor's strengths and weaknesses so that you can capitalise on them. Are they doing things that you are not yet doing or that you can do smarter? Which customers do they target? And how can you distinguish yourself from them? Like you, many fellow entrepreneurs are looking into whether they want to stay in business. If they stop, it might offer you additional opportunities. Here are some examples to show you what you can do.
Renew product or service
Investigate whether you can offer a new or revamped product, or a new service. What extra service do your customers want? For example, offer maintenance service on your product. Do you provide a service? Offer that service online via a website, online shop or platform. This way, you make ordering easier for regular customers and you reach new customers. You can also think about subscriptions. Like with software companies that offer antivirus programmes.
Adjusting your revenue model
Investigate whether changing your revenue model will make your business stronger. You can choose from dozens of revenue models. In addition to selling goods, hourly billing and a subscription, consider personalisation, for instance. In personalisation, you create a product or service for the buyer. Choose a model that suits your product or service and your customer group. If you are not certain, ask you customers what they would like. Take into account what the adjustments cost and what they bring you.
Raise prices
The prices of many products and services are rising. You may not always be able to pass these higher costs on to your customers via an increased hourly rate or adjusted product price. For example, because you have made a price agreement for a longer period. Or because your price quotation contained a lower price. Maybe your customer does not want to pay a higher price and you are afraid you will lose the customer. If you keep delivering at too low a price, it will be at the expense of your profit margin. Together with increased operating costs, it may even cause a loss.
Matters to consider
Also take a look at what matter you need to deal with if you decide to continue.
Changing spending behaviour
Your customers are making new choices in how much they spend as prices rise. The same goes for your customers' customers. Will you have enough customers left? Are they spending enough and are you achieving the turnover you need? Maybe you need to find a new target group.
Identifying dependencies
Are you dependent on one or more suppliers? Keep in mind that they too may have to make choices. You may have to deal with higher purchasing costs, changes in supply, or minimum order quantities. Or your supplier may go out of business. Investigate whether other suppliers are available. Also look carefully at your customer base. If you get a large part of your turnover from one or a few customers, you are vulnerable if something happens to them.
Find funding
Your business will probably need extra money if you want to continue. Do you not have any savings? Then you need to look for financing. You can find a business loan from a bank or an alternative financier. With a financial plan, you look at whether continuing with planned changes is financially feasible. Based on the figures, you can decide whether to go ahead or not.
Read more about the financial side of continuing or quitting your business in the next step.
KVK Advice team
Call the experienced advisors of the KVK Advice team. They will help you think about the next steps for your business. They provide advice and refer you to organisations in the KVK network. Call 088 585 22 22.