Let´s be honest, no everyone will survive the coronavirus crisis …. buuuut what it doesn´t kill you make you stronger. Here 5 lessons (or changes needed) for your business model to thrive this crisis.
1. Variable Vs Fixed Cost.
Do you remember that last part of your business model canvas? Yes, that one in the left lower corner. Yes, you and everyone ignored it.
Well, finally you are paying attention to this super important base of your business: COST STRUCTURE.
You are not struggling cause the lack of income, you struggle due to your bills are piling up and you won’t have money to pay them.
Dividing your cost structure between Variable vs Fixed Cost will allow you to leverage fairly the operation of your business according to the market conditions.
Paying so much on a fancy office when your clients rarely visit you? Time to work from a co-working space.
2. Revenue Streams.
Everyone wants to hunt the big fish, everyone wants Steve Jobs and Elon Musk in the portfolio of clients, it seems sometimes a “status quo” than a real business model.
Let me ask you, do you have a revenue stream or revenue streamS? Do your income generators have you back?
I know, it sounds easier than it is, however, having the power to develop at least 2 income generators from the same or different activities is a life-vest during shaky moments.
E.j. If you sell a hand cream (luxury product), you can also sell a disinfectant soap (they are running out now from the stores). DIVERSIFY your income, and prioritise a cash flow activity.
3. Running a business is not always about making money.
It is about providing value, and when your functional value proposition runs out (better process, cheaper, higher quality) due to market uncertainty, your emotional value proposition will stand out.
How is your brand making feel your customers when purchasing your product/service? Do they connect with your why? Your client’s loyalty will be challenged the following days and their feeling of belongingness will decide your survival.
4. Time to re-arrange partnerships.
If you are relying on your partners to keep your business floating during this crisis, it is time to rearrange and rethink your partners.
Like clients, partners need also qualification:
Are they providing you with a better value proposition?
Are they reducing your cost structure?
Are they providing you with valuable communication and distribution channels?
If the answer is NO. You need to stop collecting logos on your website and collect real value.
5. Are you enjoying this moment? If your answer is no, time to say goodbye.
If you are not enjoying this challenge, if you don´t feel excited about the opportunities ahead, leave this business immediately.
If you blame the coronavirus for your business failure and collapse, it is time to abandon it.
The coronavirus crisis gives you an excellent opportunity to close down and Start Doing What You Love.
Is it time to re-arrange your Business Model? Let me help you out to survive the coronavirus crisis.
20 years as an entrepreneur and 10 as a social entrepreneur working for social entrepreneurs and impact-driven businesses is kind of good skill at this moment, huh?
😀 Download my Social Business Canvas for FREE HERE, and work from home. Or…
😍 Have a 1 hour 1:1 consulting session with me for only
Coronavirus Price €50! (CLICK HERE).
Roberto A. Arrucha
Director & Founder of The Global School for Social Leaders &
Author of the Social Innovation Box.