Step 21 to Build a Better Business – Analyze A Successful Model
Posted on Oct 29th, 2009 in 30 Steps to Build a Better Business, strategy and planning | no comments
When you were little, you probably had some image in your head of who you wanted to be like when you grew up. Your role model might have been a neighbor, a relative, a teacher, or most likely, someone famous.
In this Step to Building a Better Business, I want you to give some thought to what you want your business to be like when it grows up, by analyzing another business as a role model.
A lot of business advice out there assumes that every small business owner wants to follow the same path: establish a fast-paced, high-growth business that will eventually get funding from investors and be sold or taken public so the owners can cash out and retire rich. While that is one image of a successful business, it’s certainly not the only image, and it may not necessarily be your image of a successful business. You may just want to achieve a certain level of annual income or to operate a business for a number of years before moving on to something else. Whatever your idea of business success is, it’s extremely helpful to find a role-model business that has already achieved that success, and follow their example.
If there’s no business exactly like yours in terms of the product you produce, look for companies that have similar values or ways of doing business. Your business role-model may even end up being a composite of several different businesses. You may want to sell your products like Business A does, but be the size of Business B. Once you’ve found one or more role-model businesses, ask yourself these questions:
- In what ways is your business similar or different?
- How can you mimic the role-model business’s behavior without infringing on them, and while still being unique?
- Research their company history. How long did it take them to get to where they are? What sort of skills and training do the founders and owners possess?
- If you can get it (which you can usually if your role-model company is publicly traded), find out their annual revenue/expenses, what tools and systems they use, how many employees they have, etc.
Making good use of role-models is as simple as:
- defining what success means for you and your business,
- finding another business who has achieved your idea of success, and,
- following their lead.
photo by MARUYAMA Takahiro (Flickr)
Related Posts
- Step 19 to Build a Better Business – Talk With Your Employees
- Step 9 to Build a Better Business – Highlight Your Differences
- Step 23 to Build a Better Business – Find a Buddy
- Step 11 to Build a Better Business – See Through Your Customer’s Eyes
Sage Small Business Solutions provides inexpensive infrastructure solutions for small and microbusinesses. If you're interested in improving your small business, or implementing techniques discussed in this article, find out how Sage can help.
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Hi there! I’m Kisha Solomon. I’m a writer, business advisor, and the owner of Sage Small Business Solutions.
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