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Business Models For Dummies by Jim Muehlhausen, JD

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Chapter 15

Looking for Signs that Your Business Model Is Weakening

In This Chapter

arrow Spotting the signs your business model may be weakening

arrow Painting a target on yourself by generating superior margins

arrow Persisting through the hard times may be a bad idea

arrow Trying easy instead of trying hard

By nature, business is competitive. Like a boxer, your competition weakens you as the fight goes on. Sometimes it’s tough to know when your weakened state is reasonable and when it’s not.

In this chapter, I show you how to recognize when the competitive fight is getting the best of your business model and when the cause is business execution. I discuss four of the most common signs that your business model may be losing its effectiveness: decreasing margins, prolonged minimal profitability, persistent flat sales, and a general dissatisfaction with your business. More importantly, I show you how to spot these trends and offer suggestions on how to best fix them.

Decreasing Margins

I can’t emphasize this point enough; great business models have superior margin. You should gauge your margin two ways. ...

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